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Private Firms Encouraged to Contract Barren Hills to Plant Trees
The government of Qinghai Province in northwest China has mapped out a series of policies to encourage individuals and privately owned enterprises to contract barren hills and plant trees.
Contractors be free from taxation for 15 years and obtain discount interest loans in accordance with relevant regulations. Local privately owned enterprises and individuals as well as those from other parts of China have already begun contracting barren hills in Qinghai to plants trees.
Located in northwest China, Qinghai's average elevation stood at above 3,000 meters. Forest area accounts for only 3.1 percent of the province's total due to harsh climate, drought and natural disasters.
During an inspection tour to Qinghai at the end of 1999, Premier Zhu Rongji called on local government to make effort to protect ecological environment.
Qinghai so far this year has returned 18,000 ha of farmland to forest and invested 496 million yuan to initiate ecological reclamation projects in 16 counties.
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