State Council, Several Policy Measures for Opening up Western China Circular

Issued: October 26 2000
Effective: 1 January 2001 for ten years

Main contents: Part One of the Circular states the principles on which the policy measures were formulated including key points. It states which areas in Western China are covered by the Circular. Part Two deals with policy for increasing the funds invested in Western China. Investment in construction will be more vigorous; priority will be given to construction projects; more money will be provided from central government finance; and more credit will be awarded. Part Three states policy measures for improving the investment environment. The soft investment environment will be improved; favourable tax policies will be implemented; there will be favourable policies on land and mineral resources; and transport prices and fee mechanisms will be adjusted. Part Four states policies for further opening up the West to both foreign and domestic investment. Areas in which foreign investment is permitted will be expanded. For example, foreign investment in agriculture, water conservancy, ecology, transport, energy, urban government, the environment, mines and tourism will be encouraged; and foreign banks will gradually be allowed to conduct renminbi business. Channels through which foreign investment can be utilized will be increased, such as BOT and TOT. Foreign trade and economic cooperation will be expanded; and regional cooperation and aid will be promoted. Part Five states policies for attracting skilled personnel and for developing scientific and technical education in Western China.