Tibet Publishes Preferential Policies to Attract Investment

The recently published "Supplementary Regulations of the Government of Tibet Autonomous Region on Investment Invitation" is a supplement to the "Some Regulations of the Tibet Autonomous Region on Investment Invitation".

The "Supplementary Regulations" is applicable to the enterprises, other economic organizations and individuals of foreign countries, the regions of Hong Kong, Macao and Taiwan and other provinces, municipalities and autonomous regions; and to those enterprises and projects established in Tibet which conform with Tibet's industrial orientation and which make an investment accounting for over 20 percent of the enterprise's net assets.

The field of industries in which investment is encouraged by the "Supplementary Regulations" include: education, water conservancy, transportation, communications and energy, and other infrastructure facilities and city public utilities, agriculture and animal husbandry, new and hi-tech industries and newly emerging industries.

Meanwhile, the Tibetan pillar industries opened to foreign investment include:

--- exploitation and utilization of tourist, human and natural resources;

--- the improvement of the drug form, renovation of prescriptions and scale-production of traditional Tibetan medicine, as well as the development of new medicines and the planting and dealing of medicinal materials;

--- the intensive processing of forest products and the development and utilization of forest resources;

--- the geological prospecting of the mining industry, the mining and processing of mineral resources;

--- the processing of agricultural and animal products and the production of ethnic handicrafts; and the development and production of new building materials.

The "Supplementary Regulations" stipulates that the preferential financial policy granted by the central government to the Tibet Autonomous Region can also be enjoyed by investors from outside.

Preferential land-use polices include:

--- those who invest in the construction and operation of grade highways (over 50 km each) and railways, railway stations and airports, shall enjoy the right of priority development, under same conditions, of the land and underground resources on both sides along the line they invest or within a fixed scope in the surrounding areas;

--- invested enterprises which use waste resources (waste land, mountains, slopes, beaches and water) shall be allotted such resources without compensation by the government;.

--- those investing in new and high-tech enterprises and engaging in water conservancy, transportation, energy and other infrastructure construction and so need arable land shall be allotted after paying land requisition fees in accordance with the lowest standard for the requisition and use of arable land;

--- the land-use right shall be transferred to the invested enterprise, that part of land transfer fees that shall go to the locality shall be exempted.

Favorable Policies Not Only Means for Developing Western China

A deputy to the ninth National People's Congress (NPC), China's top legislature, said October 31 that China's western areas should avoid relying solely on preferential policies to attract overseas investors.

The western region should attach greater importance to creating a sound investment environment and fostering professionals, rather than solely relying on the adoption of preferential policies, said Peter M. K. Wong, a national lawmaker from the Hong Kong Special Administrative Region (SAR), at the plenary meeting of the NPC Standing Committee.

Preferential Policies Not to Be Abolished

As China is ready to join the WTO, will it abolish preferential policies for foreign investment after its WTO entry? No, said an official with the Foreign Capital Department under the Ministry of Foreign Trade and Economic Cooperation (MOFTEC).

The official said that giving national treatment to foreign investors means that the treatment given by the government of the host country to foreign investors should not be lower than that granted to domestic investors under the same circumstance. But this doesn't imply that a country can't give preferential treatment to foreign investors in some aspects according to law in light of actual needs.

By PD Online staff Du Minghua

People's Daily Online --- http://english.peopledaily.com.cn/