Overseas Businesses in Western China to Enjoy Preferential Treatment: Official

Zeng Peiyan, minister in charge of China's State Development Planning Commission, said Wednesday that China will adopt a series of preferential policies to encourage overseas investors to run businesses in its western areas.

Zeng made the announcement at the Sixth World Chinese Entrepreneurs Convention held in Nanjing, capital of east China's Jiangsu Province.

In the coming decade, the income tax for certain overseas enterprises in the western areas will be reduced by 15 percent as compared to the national normal standard.

Overseas investors investing in the sectors of transportation, electric power, water conservation, postal services, and TV broadcasts will be exempted from income tax in the first two years.

When importing advanced equipment, those investing in key projects in the western areas will also be exempted from tariffs and some other taxes.

Certain key sectors including banking, insurance, tourism, accounting, engineering, and telecommunications will be opened to overseas investors, Zeng said, adding that many other preferential measures will also be offered.

With an enormous market potential and constantly improved social environment, China is becoming the most attractive destination for world investors, Zeng noted, expressing the hope that more overseas Chinese entrepreneurs will run business in China's western areas.

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