Made In China - Resources - Economy & Investment in China

Investment Environment of the Western Area

Investment Orientation of Chongqing

·Key Projects for Foreign Investment Infrastructure Facilities

Roads, bridges, tunnel, railways, power stations, water conservancy projects and such large infrastructure facilities construction. City construction, real estate development, sewage treatment, environmental protection, and such urban infrastructure facilities. Foreign investors shall be encouraged to invest, in the construction of highway facilities, and they shall be allowed to engage in real estate development, in passenger and cargo transportation business, cargo transshipping business and storehouse business in the allocated areas along the highways. Foreign investors shall be encouraged in the construction and operation of wharves and harbors for public use in the forms of joint venture, cooperative joint venture, and solely foreign –funded venture. Foreign investors shall also be allowed to engage in loading and unloading, marshalling yard, processing, container loading and unloading, doorstep-to-wharf and wharf-to-doorstep goods deliverance service. Foreign investors shall be encouraged in the construction and operation of local railway lines, bridges, tunnel, ferries and such facilities, and shall be allowed to invest in the construction and operation of freight yards and station buildings, and in the electrification of railways and in the comprehensive development of reasonable amount of adjacent land around major railway stations.

·New Industry

Development Projects. Foreign investors are encouraged to establish various kind of technology research and development centers, develop high –tech agricultural technology, electronics information technology, new material technology, advanced manufacturing technology, energy-saving technology, biology technology, Foreign investors are welcomed to invest in Chongqing High-tech Industrial Development Zone and Chongqing Economic and Technological Development Zone.

·Agricultural Projects

The development of high quality grain, cotton, oil-producing plants, vegetables, fruits, fresh keeping, deep-processing projects, spreading and adopting new technology shall be encouraged. The introduction of fine variety of animals, poultry and fishes, the breeding and culture, the processing, and the agricultural projects for export shall be encouraged.

·Industrial Projects

Foreign investment in the state-owned enterprises in the form of technological grafting and innovation to enhance technological level and production capacity and capability for export shall be encouraged in the lines of machinery, metallurgy, electronics, meters, light industry, textiles, food-processing, chemicals and building materials. Foreign investors are encouraged to invest in electronics equipment manufacturing, environmental protection manufacturing and biology be medicine manufacturing.

·Resource Developing Projects

Projects engaged in the mining and exploitation of coal, petroleum, natural gas, metal and nonmetal resources and their comprehensive utilization, deep-processing and the material production shall be encouraged.

·Service and trade Projects

Foreign businessmen are allowed to invest in banking, insurance, business retail, foreign trade, tourism; foreign trade, tourism; engage in developing scenic spots and tourist products, improving tourist transportation and upgrading tourist facilities, establishing accountant offices and law firms, consultation of international economy and technology, reparation of precision instruments and meters, railway and road freight agencies; and fund industrial capital and venture investment capital.

Investment Environment of Chongqing

Investment Environment

Chongqing is improving its investment environment. Financial service, transport and communication, education and sanitation, housing, entertainment are being built and improved by the international standard-System of policies and regulations for encouraging foreign investment, medium service institutions, guarantee mechanism are being perfected.

(1) Infrastructure Facilities

With all sorts of port facilities, Chongqing has long been a freight and passenger transport center. With a transport network of railway, road, water, air, pipe and complete communication system, Chongqing is the largest transport and communication hub on the upper reaches of the Yangtze River and in Southwestern China.

·Civil Aviation

Chongqing has three airports. Jiangbei International Airport is a 4E grade airport and a first grade port of the state-Being available to Boeing 747 aircraft, it has opened about 70 international and domestic lines to 50 cities in the world, to Shanghai in the east, to Urumchi in the west, to Harbin in the north, to Haikou in the south. It has international and regional fights to Japan, Malaysia, South Korea, Thailand, Germany, HongKong, Macao, Taibei Gaoxiong. In 1999, its annual freight traffic amounted to 236,440,000 tons and aviation passenger traffic 1,234,000 persons. We have worked out the program building heliports and small sized airfields in landscape sightseeing areas and the areas with poor traffic transportation.

·Railway Transport

Chongqing Railway Port is the second grade port of the state. Three electrification railways including Chengdu-Chongqing Railway, Xiangfan-Chongqing Railway and Sichuan-Guanzhou Railway joining the railway networks of the state. The Special line of freight container from Chongqing to Kowloon HongKong is opened. Chongqing is building light-way transport in its downtown. We will build up Da-Wan (Daxian-Wanzhou) railway, Yu-Huai (Chongqing-Huaihua) railway and Sui-Yu (Suining-Chongqing) express railway, and it is hopeful to build Lan-Yu (LanZhou-Chongqing) railway, Fu-Wan-Zhi (Fuling-Wanzhou-Zhicheng) railway by the end of 2005. Round about 2010, Chongqing will form a traffic transportation hinge which consists of Cheng-Yu, Sui-Yu, Yu-Qian, Xiang-Yu, Yu-Huai, Lan-Yu and Yu-Han 7 railway trunk lines.

·Road Transport

With 21 main highways, including Chengdu-Chongqing Expressway and 17 highways connecting Yunnan, Guizhou, Sichuan, Hunan, Hubei, Shanxi province, Chongqing has a convenient road network. By 2005, the people form the furthest districts and counties will be able to reach the main city zone within 8 hours, and Chongqing will build up Chongqing sections of Baotou-Beihai expressway and Chongqing-Changsha expressway in the western developing program of 8 longitudinal lines and 8 transverse lines worked out by the country as soon as possible.

·Water Transport

Chongqing water port is the first grade port of the state with 27 navigable rivers and 500 civil motor-driven boats. Chongqing has 40 docks including 9 docks with freight handled of 1 million tonnage and more than 1,600 berths. The annual freight handled of the Chongqing dock reaches more than 10,000,000 tonnages. Cargoes can be freighted by river and sea in Chongqing. After the completion of the Three Gorges Project and the transformation d Chongqing's main docks, fleet of 10,000 tonnages can reach Chongqing directly, and the ship of 3,000 tonnages can reach Chongqing from Ⅱ Sea Area.

·Post and telecommunications

Chongqing is the post and telecommunications hub of Southwest China. With the earth station of satellite communications Chongqing has opened international direct dialing to over 180 countries and regions, and linked all counties and districts with the national telephone exchange network. It has 1,000,000 program-controlled telephones and 200,000 mobile telephones. Post of Chongqing can reach over 100 countries and regions in the world. Chongqing has postal services such as packet direct delivery, express mail and international mail exchange.

(2) Distribution and brief introduction of development zones Chongqing has state-level economic and technological development zone and high-new technological industrial development zone, and 10 municipality-level economic and technological development zones in Banan, Yubei, Bishan, Hechuan, Yongchuan.

·Chongqing Economic & Technological Development Zone

Was approved to be a state-level economic and technological development zone in 1992. It covers an area of 9.6 square kilometers with a distance to downtown just 3 kilometers, 3 kilometers to a container port lying in Jiulongpo district and 28 kilometers to Jiangbei International Airport. In the development zone, there are all relevant institutions such as banks, customs, commodity inspections, taxation, insurance company, accountant and law office. It also has complete infrastructure facilities such as water supply, electricity supply, gas supply, communication, road, etc. The development zone has introduced over 260 foreign investment enterprises from 20 countries. The development zone is beginning to plan and absorb foreign investment to develop an extended area of 46 square kilometers.

·Chongqing High & New Technological Industrial Development Zone

Was approved to be a state-level development zone in 1991. It is ranked as one of the five pilot development zones of comprehensive reform by the state. The development zone covers an area of 20 square kilometers. All the relevant service organizations have been set up in the development zone, including the administration of industry and commerce, the branch of tax bureau, the personnel exchange center, the financial bodies. Nowadays, with Shazhong Street of Science & Technology and Shiqiaopu Hign-tech Development Area in the development zone, it has introduced 4000 enterprises, among which there are 280 foreign investment enterprises and 300 high & new technological enterprises with a total investment of US $ 990 million. The development zone is building Erlang Science and Technology Area, which is its second development stage approved by the state.

·The Northern New City District

The northern new district includes the Export Processing Zone and the extended areas of Chongqing Economic & Technologic Development Zone and Chongqing High & New Technologic Industrial Development Zone, covering an area of over 100 square kilometers. A modern industrial base with high & new technology as the principal industry, this district concentrates on developing information technology industry, optics & electronics, environment protection industry, bioengineering and new pharmaceutical industry, automobile and the components production industry. It enjoys the same policies as the economic & technologic industrial development zone and high & new technologic industrial development zone of the state level and policies of the State's Strategy of Developing the West.

·Investment Service

With the tenet of letting investors made a pile and providing a good environment, Chongqing Municipal Government promulgated the regulations and its 6 supplementary files. "Decision of Chongqing People's Municipal Government upon Further Standardizing Government” Administration and Improving Investment Environment”. In the files, the 10 parts from carrying out administrative management open, simplifying work procedures, improving work efficiency etc. are regulated strictly. Last year, Chongqing Government began to implement the 10 new decisions for developing environment (abbreviate to "Ten Passel”), in order to work up and perfect the service system according to the international practices, to set up the legal system which can really guarantee the investor's rights and interests.

·"One-Station” Service

In order to simplify work procedures, enhance work efficiency, perfect the investment environment, we adopt the "One-Station” work style, practice "(One Service Window, One Continuous Line Service, One Payment Spot and One Complaint Center”. The "One-Station” Office is headed by a chief on duty from Chongqing People's Government. Concerning Departments appoint one staff to present in the office; and to handle the foreign investment affairs for enterprises Contact. Tel: 69019579 69019568

·Customs

Chongqing has three Customs: Chongqing Customs, Customs of chongqing Economic and Technological Developnlent Zone, Wanzhou Customs. In 1997, Chongqing customs reformed and improved process of import and export goods, implemented one-line conduction with in and out two windows, and opened dynamic vision procedure for declaration process. Many office automation systems such as H883/EDL customs system had been put into use. At the same time, customs Chiefs are on duty in the special windows.

·Financial Institutions

Under the control of the People's Bank Chongqing Branch, Chongqing forms its financial system composed of state-owned and other commercial banks, various non-bank institutions and overseas financial institutions. Foreign banks had begun to operate in Chongqing. Canada Scotia Bank, Japan Sumitomo Bank, Pongseng Bank, East Asia Bank and HongKong Bank from HongKong had set up branches in Chongqing.

·Arbitration Institutions

Chongqing has China International Trade Arbitration Commission Chongqing Branch and Chongqing Arbitration Committee that deal with foreign economic disputes.

·Complaint Center

In Foreign Investment Office of Chongqing Municipal People's Government, there are Chongqing Complaint Center for foreign Investors and Complaint and Coordinating Center for Taiwan Investors, which receive complaint cases of foreign investors and explain concerned policies.

·Law Services Consulting Institutions

Chongqing has 200 law offices with over 2,500 employees, and has 10 municipality-level consulting service institutions. Each county or district has foreign investor consulting institution.

(4)Living Environment Foreign guests and their children could enjoy the same charge standard to the Chinese people when they need vehicle, hotel, medical treatment, school tour and shopping etc.. With a high reputation in the world, Chongqing food is good at the taste. Hundred dishes have hundred tastes. Friends from all over the world can enjoy the Chongqing life because the city has complete entertainment facilities, convenient and comfortable shopping market. Some holiday-spending villas such as Jinju Island, Sunlight Hot Spring, Nanhu Lake, Qiaoping international village club were completed. Chongqing is planning and building some large constructions of culture, sports and entertainment, including Chongqing International Golf Course, Yuanjiagang Stadium, Jiangbei Water Park to meet investor's entertainment demand.

·Medical Services

Medical treatment in Chongqing, there are more than 5,000 medical establishments here, including 3,170 hospitals. Emergency treatment with the telephone number of "120” is available to the downtown and suburb. After you ask for help, ambulances of Chongqing Emergency Center will arrive the spot soon. Chongqing is famous for its traditional Chinese medical science, and the famous Chongqing Research Institute of Traditional Chinese Medicine has cultivated many qualified personnel of traditional Chinese medicine for the country. Chongqing has over 10 Chinese medicine hospitals, and you can have good recovery treatment without any side effect.

·Education of children

All the primary school and high school are opening to foreign Children. Who are 3 years old can go to kindergarten, and enjoy pre-school education when they are 6,or go to primary school directly when they are 7.

·Services of exit and entry a country

Chongqing offers foreign traders, compatriots from HongKong, Macao, Taiwan and their family members who will invest in Chongqing the preferential policy when they need to apply or alter their resident certificate or exit and entry visa. Any foreign experts and engineering personnel working in the state-owned enterprises and any foreigners working in foreign investn lent enterprises could get the valid returning visa for repetitious use within 1 year according to their company's opinion. The compatriots or supervisors from Taiwan invested in Chongqing could get the approval of exit and entry of our country or temporary residence stay in Chongqing for many time within the period of validity of <passport of Taiwanese residents exit and entry of the mainland>.

Brief Introduction of Sichuan

Area:

485000 square Km, taking 5.1% from the total territory of China.

Population:

83290000

Climate:

Mild, humid and subtropical. The annual average temperature is between 16 to 18 in it west part and 19to 20 in the east. The annual rainfall is 1200mm.

Landform:

Characterized by basin. Mountains and plateaus cover 87.82% of the total area of the province and the rest are highland and plains.

Regionalism:

21 regional cities, and autonomous prefecture and 179 counties. The capital is Chengdu.

Hydropower resources:

The total figure is 150 million kilowatts, taking a proportion of 22.2% of China. The utilizable figure is estimated at 110 million kilowatts, which tops the country.

Minerals:

There are 132 minerals have been found in Sichuan. 11 minerals .such as vanadium and titanium rank first and 48 rank top 5. The western Panzhihua region and Southern Sichuan are the biggest deposit bases of the province.

Biological Resources:

The forest area is 11.53 million hectares, standing No.2 in china. It covers 20.4% of the whole areas of Sichuan.

Grassland resources :

Range 16.33 million hectares and are one of top 5 pasturing area. There are more than 1100 kinds of living things have been found in Sichuan Province, taking half from the total of the country. The amount of giant panda is over 85% of total amount of China. Sichuan is also a main producing base of medical herbs.

Tourism Resources:

There are 40 relics under special preservation by the state. Leshan Grand Buddha and Mountain Emei are listed in Name List of world Natural and Historical Heritage. Sichuan has 9 state-level scenic spots, 37 national and provincial famous historic and cultural cities. Jiuzhai Gully and Temple of Huanglong are entitled by the UNESCO as "natural heritage of the world".

Labor Force Resources:

Sichuan has a labor force of 53. 68 million, taking 6.6% China's total. Sichuan is an important scientific and research base in China, with 42 universities and colleges and 1.53 million scientific and research personnel.

Transportation and Communication:

The highways in Sichuan stretch over 81,600Km, with 1000 kmtotal mileager of expressways. The railways in Sichuan cover 2,693km, Sichuan has 6 civil airports and other 7 ones under construction. The Shuangliu International Airport of Chengdu becomes the fourth largest airport in China. More than 100 regular domestic and international airlines have already been opened.Rapid progress has been happened in the field of telecommunications and post. A modern communication system with microwave, optical cable, programmed telephones, paging service and fax has been set up. Till the end of 2000, there are 8.23 million sets of telephones in Sichuan with a dissemination ratio of 9.8% in the whole province and 46.7% in urban areas.

Energy:

At the end of 2000, the total generated energy amounted to 56.461 billion KWh with which hydropower increased 20.5%

Investment Environment of Gansu

The advantageous location is eminent

Gansu lies in the heart of China connecting the east, middle districts with northwest China. Lanzhou, the capital of Gansu and the Geographical center of China, is the main commerce center in the west and one of the twelve main communication hubs with four state railway lines of Lanzhou -Xinjiang, Baotou-Lanzhou, Lanzou-Lianyungang and Lanzhou-Qinghai crossing here. In the past, the important geographical position made Gansu a key junction in the ancient Silk Road, today, Gansu acts as the strategic passage in the modern Silk Road-the Urasian Bridge and a linking and supporting base in developing the whole of northwestern China.

Completing Infrastructures

Transportation Gansu is the important transportation hub in northwest China with its complete network of railways, highways and airlines, which have already taken shape over the face of the province. The total length of railways has amounted to 3275 km and the length of transport mileage amounted to 2322 km. The network of highways covers a distance of 36212 km including second grade and four civil aviation airports, such as Lanzhou Zhongchuan, Dunhuang, Jiayuguan and Qingyang, and two both military and civil airports such as Qingshui and Qianshui. Being available to Boeing 767 and A300-A600 aircrafts in Lanzhou Zhongchuan Airport, Gansu has opened 31 domestic lines to Hong Kong and other domestic cities.

Telecommunication Gansu has entered into program-controlled telephone stage and the telecommunication network has linked all parts of the province with the volume of mobile telephones amounting to 1.3 million lines of the number-dialing telephone network, the public-number-grouping telephone network, the internet and other public mass media telecommunication network have opened successively and covered the prefectures and cities of the province. Lanzhou has become the telecommunication hub in northwest China and dialed directly to over 100 countries and regions with the state optical cables completing through Xizang-Lanzhou-Urumqi, Beijing-Huhhot-Yingchuan-Lanzhou, Lanzhou-xining-Lasha, Lanzhou-Chendu.

Electricity Power The electricity power network of Gansu is the center of northwest power network of China with the voltage-grade 330 kV. The total capacity of power equipments amounts to 6.13 million kV and the annual power generation to 26.242 billion kWh. The substations with transforming capacity of 110 kV have set up in almost counties of Gansu and the length of power transmission line amounts to 2977.48 km, so the electricity power has been used in almost every counties and villages in Gansu.

Municipal Infrastructure The rate of water supply coverage amounts to 90.2 per cent, the rate of sewage treatment to 30.4 per cent, the rate of garbage disposal to 36.2 per cent. The total area of centered heat supply covers 30 million square meters, and average public green land of each person covers 3.6 square meters.

Complete Market System

There are 1800 various commodities markets including 223 wholesale markets, 55 personnel exchange centers, technological markets, 14 real estate markets including 77 county-level real estate exchange centers which have been worked. There are 24 stock markets and 19 stock services departments, 2 futures markets have been established and 15 enterprises have been on the stock market in Gansu.

Economic and Technological Development Zones

There are 9 economic and technological development zones in Gansu, such as Lanzhou, Lianhai, Beiying, Jinchang, Xichen, Qianshui, Dunhuang, Lingxia and Wenfeng. In these development zones, there are all relevant institutions such as banks, taxation, insurances, accountant and law offices. It also has complete infrastructure facilities such as water supply, electricity supply, gas supply, communication highways, etc. Lanzhou High-tech Industry Development Zone was established in 1991 where over 20 units have entered in including Lanzhou Branch of Chinese Academy and other scientific research institutions attached to the departments of the center government and Gansu province with 10000 scientific researchers. The number of enterprises entered into the zone amounts to 501 including 47 foreign investment enterprises.

Medical Services

There are 8979 various medical service institutions in including 366 hospitals, 106 epidemic prevention stations, 25 special treatment stations, 90 mother and child health stations, 6730 comprehensive treatment offices. There are 58992 beds supplied for the patients in the medical institutions

Investment Enviroment in Guizhou

Transportation

Guizhou is a transport hub of southwest china and been set up a comprehensive transportation network with Guiyang as core, which links up other province and regions outside the province with railway and highway transportation as framework in combination with water transport and coil aviation.

Railway

With Guiyang as centre, Guiyang-Kunming, Chengdu-Guiyang, Guiyang-Guilin, Guiayng-Changsha and Nanning-Kunming are railway lines as national economic lifelines pass through the province. They undertake the overwhelming part of freight volume both travelers and goods. This province owns the biggest goods marshaling station within southwest zone--Guiyang south Railway Station. its main line has a length of 1468.564KM, f which,1068.4km of the railways have been electrified the whole nanning0kunming railway line passing through the western part of Guizhou has been opened to traffic. In future five years, Guizhou will become a key place of Chinese railways construction the project construction including the Zhu-Ku dibble-tracking Railways, the net-kun railway and the Shui-Bai railway and their related matching pivotal projects has begun, the construction of Chongqing-Huaihua railway is going to start after the completion of the project construction the main line from southwest zone of china to east china and south china will be open to traffic, fuming a new artery form south to north. the main line will give an enormous impetus to the economic growth in Guizhou, southwest china even throughout the country.

Highway

The whole provincial highway traffic mileage reaches 34000 km, the tow national main highways that are in process of the planning and construction, 5 national main highway and 30 provincial main highways that have provide traffic service form a highway network, through which all the counties and cities connects with each other.

With Guiyang as center, the average density of the road network being higher than that of the whole country after the construction of the Guiyang-Huangguoshu and Guiyang-Zunyi high-grade highways was completed and opened to traffic. The construction of the Guiyan-Biijie and Guiyang-Xinzhai of Guangxi high-grade highways has begun. On the estimation, the construction of the Guiyang-Bijie highway and Guiyang-Xizhai highway will be completed and opened to traffic in 2002.

Water transport

The inland rivers of Guizhou belong to either the Zhujiang of Changjiang river systems. The cruising range is 2123km including 6th class passage of 862km and 7th class passage of 821km one can navigate along the Wujang and Chichi rivers to the changing form north and along the Nana River and the Bedpan River to the Zhujiang River from south to go sea. Civil Aviation Civil aviation has developed rapidly and so far, there are 14 airline companies managing the airlines from Guiyang to 33 large-sized or medium-sized cities and Hong Kong region newly-constructed 4d level Guiyang longdongbao airport is one of the trunk line airports in the aviation transportation networks of out country and can meet the demands of going up and down for large-medium sized civil aircraft. The Tongren airport whose reconstruction and expansion are underway belongs to 4 C civil level airport. After its construction is completed, the airport will be able to meet the demands of Boeing 737airliner for going up and down, in addition the work of the preliminary feasibility study work has been noted concerning the setting up of the airports in Anshun, Xingyi, Liping. Libo, etc.

Post & Telecommunication

Post and telecommunications have developed rapidly throughout province. The construction of a digital main line transmission network has been completed on the basis of using the optical cable as a main communication means and digital microwave and satellite communication as an auxiliary communication means this network has the features of large-capacity and high rate that can cover the whole province. The total length of the optical cable of the main lines is 11138 km in the whole province. There are 1.86 million local telephone exchanges in this province, the total capacity of the long-distance exchange is 71000 line. There are 1.06million telephone customers in this province. The popularization rate of telephone is 3.24 telephones per100 person, analog moving telephone network, GSM digital moving telephone networks have covered over the counties and cities over the county, both sides of the high grade highways and the main scenic sports. The whole capacity of moving telephone exchanges is 600000 telephones in terms of post service. The volume of traditional business has steadily raised and while the new, light-weight business has developed rapidly and the level of the automatic and electronic handing mail service has risen day by day. The computer business handling system has been applied in the all postal business windows in the counties and cities over the county there are 141 electronic branches of the post office. The "green card engineering" has been set up in this province. This province has established the postal poormouth a computer interconnected network the level of comprehensive use of railway.

Power and Water Supplies

Guizhou possesses abundant energy resources and the prices of electricity and fuels are rather cheap there. The construction of 15 power plants covering hydropower stations and thermal power stations such as Wujangdu Dongfeng, Tianshengqiao pudding, Guiyang Qingzhen and Panxiang has been completed. The province's installed capacity was 5.95 million KW in 1999, with the annual power generation of more than 33.45 billion kHz. This province also can provide its surplus electric power to other regions and provinces including south china central south china Sichuan, Yunnan except to satisfying its own needs of production and living.

Guizhou has abundant water resources with good water quality. There are over 100 running water works throughout the provinces supplying 1.2 milling tons of water daily. the amount of average dairy living water is 152.46itr.per person the construction of the water supplying work including west suburb water works in Guiyang with a supply of 400000 tons/d, south suburb water works in Zunyi water supplying of 50000 tons/d and sansei water works in an shun will soon be competed therefore, the meets of industrial and agricultural production and living can basically be meet. the water price of Guizhou province is lower than that of the coastal area by over30%.

Scientific and Technical Force and Managerial Level

For the needs of the economic construction, in particular, for and in crease of the input made by state in the "construction of third line of defense" in 1960's and 1970's many scientists and technicians moved to Guizhou from the developed provinces and a large number of scientists and technicians has become the mainstay of the construction of Guizhou in respect of science and technique and management. Guizhou possesses a number of competent scientific technical and managerial personnel the average number in 10000.staff and workers being higher than one of throughout the country.

The national defense scientific and technical industry relying on the three bases of aviation, aerospace and electronics possesses not only advanced technical equipment, scientific experiment facilities and measuring and testing means, but also a competent staff, a high managerial level, perfect technical responsibility and quality guarantee systems it has the capability of absorbing import technique and developing new products. The products made by some enterprises are on sale to the international market and enjoy a good reputation.

Construction of Market

Along with the economic development and establishment of the economic system of the socialism market according to the market system the production factor markets including the means of production real estate finance security technique labour talent etc. have been established in the all central cities they can basically meet the needs of developing economy.

This province is setting up the perfect labor market step by step that accord with the economic demands of the social market At present, it has established a batch of the market, Guizhou provincial labour preparatory center of the national labor market information network Anshun. Qiandongnan. Qiannan labor markets labor Central market of Guiyang city and the market branches in Yunyan Nanming and Xiaohe districts. Most of the markets have been equipped with the computers that are used to manager their business and transfer and share information in time. Demand information of labor is given in the form of a large screen, touch screen, newspapers, radio station, oral notes, etc. the markets have actively developed the work of vocational guide analysis and evaluation and have got initial results as to wage price guide. They give applicant concrete arrangement the labor market at different levels in this province. Annual average income of workers and staff was RMB5385 yuan in 1998.using similar computation conditions, annual average income of worker and staff was RMB 6078 yuan in 1999.

Construction of Development Zone

The development zones of this province was instituted in 1992. There are 2 state level and 9 provincial level development zones.

They are scattered in the central cities such as Guiyang, Zunyi, Liupanshui, Anshun, Duyun, Xinyi, Tongren and Kaili etc. along the both sides of 4 main lines and 3 high grade highways. These places have transport facilities.

The goals of setting up the development zones are to attract more funds from the investors relying on the strength of the central cities and large-size and middle-size enterprises in order to mend the peace of the reform and opening-up to carry out import from abroad and linkage at home in order to further the progress of science and technique to center on fostering the back bone in dustiest including automobile and electronic industries can vigorously promote the economic developing and are competitive on the market this province plan to construct there developing and are competitive on the market. This province is planning to construct these development zones according to the high standards and to make them become the urban modern new zones in the near future.

Since 1992, all development zones have made marked progress. At present, the development zones have made an investment of RMB4.77billion in infrastructure. A tentative construction of the small industrial park and small developed area in commerce and trade with facilities of a complete set including water, electric power, road, communications and gas has been completed, the state level new and high-tech industry Development Zone are playing a "incubation device" function.

Relying on the development of resources and the strength of the central cities and the state-owned large and middle scale enterprises is the features and superiority of the development zones of Guizhou province, as these development zones can provide adequate energy resources, cheap electric power and fuel and have many enterprises that own idle plant buildings and a number of competent scientists and technicians the investor would yield faster results and bigger economic returns with smaller investment in these development zone. By the end of 1999, the development zones throughout the province implemented 3023 projects with a total amount of the contract funds of RMB20.71 billion, among them, the actual funds provided by the investors are RMB9.227 billion.

In terms of the soft environment, excerpt to the various favorable policies stipulated by state that encourage foreign investors to make an investment in china, Guizhou provincial people's Government and the development zones in different level have formulated a series of the favorable policies and measures, including the administration management in industry and commerce, taxes, urban construction, state land management have established the offices in the all development zones so that their working efficiency can be further improved. Through the past several year's construction, the development zones in our province. Traveling traders of all walks of life both at home and abroad are welcome to go to Guizhou for visiting, making an on-the-spot investigation and initiating industries.

Service Facilities

In recent years, enormous changes of the appearance of the cities and villages in this province have taken place. Among them, change of Guiyang city can be regarded as a typical example. The service facilities are becoming better and approaching perfection day by day. The highway, post and telecommunication and finance networks over 220kv have covered 76 ones of 86 counties and cities of the province and will reach its all reigns in the end of this province and will reach its all regions in the end of the "Ninth-Five Year Plan". There are 20 odd three-star or two-star hotels, one villa-styled guesthouse and other batch of reformed and comparably full functional hotels that can accommodate foreign guests. Some other three-star or more luxuriant hotels are under building or are being planned.

Key Fields for Investment in Guizhou

According to the strategy layout and the policy of "West Development" and the development of the key industries, the investors are supported and encouraged to develop the follow fields.

1. According to the "West-East Electricity Transmission" plan, the investors are encouraged to construct the Hydro power station and completely exploit of the high quality coal, and the other mineral resources, including gold resource.

2. Construction of the traffic infrastructure, including the procurement and the management of the high-grade road, and the construction of the public utilities of traffic, communication, water, electric and gas supplying industry.

3. The development of tourism service facilities, scenic spot construction and the synthetic exploitation of the tourism resources, including the hotel construction and management, initiate service facility and entertainment project, and open up new tourism routes.

4. The development of the new and high technology industry of electronic information, modern biological and new medicine, mechanism, optics and electric integration, the new material and high-efficiency, energy-saving environment protection industry. Chinese and foreign investors are welcome to establish joint ventures or cooperate with the provincial enterprises to establish new IT bases in China's west region.

5. The investors are permitted to invest the bank, insurance, travel agency, commercial retail enterprise and international trade enterprise according to the national policies and related regulations. Try to attract the foreign bank to establish branches in our province.

6. Set up joint ventures of certified accountant agency, lawyer agency, project designing company and related service industries, and transportation enterprises.

7. Permit investors participate in of capital rearrangement the state-owned enterprise in the patterns of procurement, annexing, purchasing shares or holding shares. Enlarge the market entry range of the private enterprises. They are permitted to invest the fields opened to the foreign investors in the patterns of joint venture, cooperative venture, and solely foreign funded or specially permitted operation.

8. Foreign investors are encouraged to invest the modern agriculture, and open up wastelands, barren hills and water resources, develop the green industry, achieve the modernization of the herbal medicine industry. Develop the specific food processing industry.

Brief Introduction and Investment Enviroment of Qinghai

2002-12-03

Geographical Distributions

Qinghai Province, "Qing" in short, wins her reputation by the Qinghai Lake, the largest inland salt lake in China. Located in the northeast of the Qinghai-Tibet Plateau, its geographical coordinates are between 89.35degree----103.4degree E and 31.39degree----39.19degree N. Qinghai, as the fourth largest province in China, covers an area of 721,200 square kilometers, owning 1/13 of the total area of China. Vast in territory, its scenery is magnificent.

Qinghai Province can be divided into 3 geographical districts, the east river valley district, the west Chaidamu basin district and the east Qinghai high plateau district.

Climate

With strong solar radiation and long elimination, the general solar radiation in most parts in Qinghai is above 605 kilojoule/cm square. In the Chaidamu district, it is above 700 kilojoule/cm square. In the whole province, the average sunshine time is 2500 hours, while in the Chaidamu Basin, it reaches more then 3500 hours.

Here the average temperature is low but not extremely cold. The average annual temperature in Qinghai is between -5.7°C---8.5°C. The average annual temperature in the Qilian mountain area and the south Qinghai plateau, which cover an area of 2/3 of that of the province, is below 0°C, and in the warm east Huangshui river valley, Huanghe river valley, it is about 6°C -- 8°C. In the province, the highest temperature is 5.3°C -- 20°C, and the lowest, -17°C -- -5°C. In most parts of the province, winter is long, but not too cold.

Precipitation is little and varied for districts. The most parts have an annual precipitation below 400 mm. And it reaches over 600mm in the Daban Mount and Laji Mount in the east, Juzhi County, Banma County and Nangqian County in the south east, among which Juzhi County has the most precipitation, 772.8mm. In the Chaidamu Basin, there is only 100mm of precipitation.

Precipitation and warm temperature is in the same period. Most parts in Qinghai enter rainy season in later May. Rainy season ends in about middle of September, lasting for about 4 months. It is during this period that the month average temperature keeps 15°C and rain is rich comparatively, beneficial to farming and herding.

More meteorological is calamity. Qinghai is a more meteorological calamity province. The main calamities include drought, hailstone, frost, snow and sand storm.

Administrative Divisions

Qinghai Province administers 1 prefectural city, Xining City, 1 prefecture, the Haidong Prefecture and 6 different nationality autonomous prefectures ,Haibei Tibetan Autonomous Prefecture, Hainan Autonomous Prefecture, Yushu Tibetan Autonomous Prefecture,Huangnan Tibetan Autonomous Prefecture, and Haixi Tibetan and Mongolian Autonomous Prefecture. Under these prefectures there are 48 counties. Under these counties, there are 38 towns and 404 townships. In additon, there are 4,008 villagers committees,28 street agencies and 307 community centers. Among the county-level administrative units, there are two cities attached to prefectures,30 counties,7 minority autonomous counties,4 districts attached to Xining City,3 administrative committees and 2 Working Committees.

Economic Achievements

Since liberation, Qinghai has enjoyed large-scaled economic development on a planned basis and great achievements have been obtained. What is significant is that, since the Third Plenary Session of the 11th CPC Central Committee, we have been adhering to reforms to promote opening-up. We have also sticking to opening-up to accelerate development. As a result, the volume of economy has been expanded and the overall strength has been increased. The people's living standards have been improved. Qinghai has taken on a prosperous new look, with people of all ethnic groups united and the society stable.

In 2000, Qinghai's GDP reached 26.312 yuan, an increase of 9 percent over the previous year and 52.2 percent over 1995 if calculated with comparable prices. It represents the mission of quadrupling the per-capita GNP of 1980 has been fulfilled one year before hand. During the Ninth Five-year Plan period, Qinghai's GDP increased by an average annual rate of 8.8 percent. The per-capita GDP reached 5,068yuan, enjoying an increase of 7.4 percent over the previous year and 41.3 percent over 1995. The investment for fixed assets from all the society in 2,000 hit 15.4 billion yuan, an increase of 20 percent over the previous year and an average annual increase rate of 25.2 percent during the Ninth Five-year Plan period. In the first year of the large-scale development program for the western region, a good beginning has been realized.

The development of resources has faced with a favorable start and progress has been made in readjusting and improving industrial structure. Four leading industries comprising hydropower, salt lake chemicals, petroleum and gases, and nonferrous metals------plus four advantageous ones including metallurgy, construction materials, medicines, and agricultural as well as animal husbandry products processing, have taken preliminary forms.

In Qinahai's GDP, the increase value of the first industry hit 3.85 billion yuan; that of the second industry 11.316 billion yuan; and that of the third industry 11.146 billion yuan; a decrease of 4 percent over the previous year and 7.7 percent over 1995; an increase of 11.7 percent over the previous year and 65.2 over 1995; and an increase of 11 percent over the previous year and 60.3 over 1995.

The per-capita disposable income of urban dwellers reached 5,170 yuan and the per-capita net income of rural and pastoral residents 1.490 yuan, an increase of 10.4 percent and 0.44 percent over the previous year. The poverty-stricken population has deduced from 1995's 830,000 to 2000's 643,000.

Culture Heritage

Qinghai enjoys a splendid culture of river source. It is said," Qinghai was once a mixing center of all cultures". The ancient Qiang people was one of the oldest nations who created the ancient culture of Qinghai plateau. A lot of unearthed artifacts, such as painted dancing pottery bowls, pottery drums, pottery whistles, four-hole bone flutes, and so on, made 3500—5000 years ago, proved that the Qinghai's culture was one of the Chinese culture sources.

The Kunlun mythology sourced within Qinghai province and the areas of river source, connecting with Qiang's culture, is also recognized as one of the Chinese culture sources. Specially, Qinghai's painted pottery culture wins is popularity in the world.

The heroic epic "Gesa'er" spread in Qinghai—Tibetan areas is a huge opus with more than 10 million words and more than 1 million lines. It was said the opus born in the Song Dynasty was called encyclopedia for Tibetans. Beside, the Regong arts are the painting arts in Tibetan traditions, which is also famous home and abroad. Qinghai was also the birthplace of Tibetan Buddhism in "Later Hong Period'. The colorful custom culture is also important part of the river source culture. Now the unearthed artifacts have reached 200,000 sets, some of which belong to the State protection grade. There are many historic sites belonging to the State grade, such as Ta'er Lamasary, Qutan Lamasary, Longwu Lamasary,and so on, several hundreds ancient sites belonging to the provincial grade, and some ancient tombs, ancient ruins excavated or being excavated, such as Liuwan tombs, Tubo tomb groups in Dulan County, Shenna relics and the southern Liang Dynasty relics in Xining Hutai. All of these are the fruits of labour and intelligence of the people in all the southern Liang Dynasty relics in Xining Hutai. All of these are the fruits of labour and intelligence of the people in all periods. In addition, there are some other aspects for study and development, as "Tang—Bo ancient road", "Silk sub-road", minority's living, clothing, medicines, sports and artificial arts.

Now there are 8 large scale dance dramas, mostly created from traditional Tibetan dramas, such as Tibetan drama "Happy fairy maiden" and "Emissary of the Tibetan King", Tibetan song and dance drama "Battle on the Huoling Mount", Beijing opera "the King Gesa'er", song and dance drama "Flowers and Boys", and so on. All these dramas are either the heritage of the excellent cultural traditions or the successful combinations of modern spirit. Among them, the "On the Place Faraway" and "Flowers and Boys" have gone abroad, sung all over the world.

History

In the late Old Stone Age before 20,000—30,000 years, ancestors of Qinghai people lived in the areas of the Chaidamu Basin and Kunlun Mountains. Discovered by archaeology, exploitation of Qinghai has been lasting for at least 5000—6000 years. In the province, civilization of the /new Stone Age was splendid and ancient painted pottery are world famous. Qinghai's ancient culture was connected with Qiang people and their ancestors. The earliest people on this land were Qiang people, one of the oldest peoples in west Qinghai. Illustrated by a lot of documents, the Yan and Huang Emperors, so-called as the Chinese ancestors, were just Qiang people. They were both the chieftains of the Qiang groups.

In the year of 121 B.C.( Yuanshou 2nd year of Han Dynasty), the emperor sent General Huo Qubing to conquer the Xungnu people on west side of the River( Huanghe River), set up forts, and 4 prefectures on the west side of the River. IN the year of 111 B.C. ( Yuanding 6th year of the Han Dynasty), Han troops conquered the Hehuang Qiang people, set up "Qiang-protection office", manage Huangzhong county, and built up the Xipingting(Today's Xining city). In the year of 61 B.C.( Shenjue 3ird year of Hanxuan Emperor), Zhoa Yongguo was sent to conquer the descendants of Xianling Qiang, stationed troops to grow food in the Huangshui area. In the year of 222 A.D.( Huangchu 3nd year of Wei Wen Epmperor during three-states period), on the base of the old city---Xipingting of Xihan Dynasty, Xining prefecture was built up.

At the beginning of the 4th century, Tu Guhun people moved into Gansu and Qinghai , and set up the Tu Yuhun state, ruling Qinghai for more than 300 years. During Eastern Jin sixteen states period, Earlier Liang, Earlier Qin, Later Liang, Southern Liang, Western Qin, Western Xia, and Northern Liang ruled Qinghai's Hehuang area in succession.

In the 7th century, Songzan Ganbu unified Tibetan plateau, and set up the Tubo Dynasty. He controlled the whole Qinghai are for nearly 2oo years. During the five dynasties and ten states period, the Tubo groups were dispersed.

In the Song Dynasty, Hu siluo began to be powerful. He, taking the Qingtang cheng(Today's Xining)as a center, set up a local power mainly composed of Tubo people in the Hehuang area. In the year of 11m3(Chongning 3nd year), Song Dynasty rebuilt the Shan prefecture in to Xining prefecture, to record Xining in its history. After the Northern Song Dynasty was doomed, Jin and western Xia Empires occupied the Hehuang area for about one century.

In the 13th century, the east area of Qinghai was put into the map of Mongolian Khan States. At the beginning of the ruling time of Hubilie, the governor offices were set up in Hezhou prefecture, administering the Tobo groups in Gansu and Qinghai. In 1281, Gansu province was set up to administer Xining and other prefectures.

In the year of 1371 (Hongwu 6th year of Ming Dynasty), Xining prefecture was changed into Xining Garrison, administering 6000 households. In 1488, Xining General Office was set up to manage Mongolian, Tibetan departments and the other areas near Xining. At the beginning of the Ming Dynasty, the east part of Qinghai carried out the Tusi system (a system of appointing national minority hereditary headmen). In South Qinghai and west Sichuan, were set up governors to administer the appointed officials.

At the beginning of the 16th century , the Heshuote group, one of the 4 Mongolian Elute, moved into Qinghai, and became the ruler of Qinghai. At the beginning of the Yongzhen, Qing Dynasty, setup the Qinghai affairs minister, administering all the Mongolian Banners and Tibetan tribes of Yu shu, Guoluo in south Qinghai and other areas arround Qinghai Lake in south Qinghai. Then Xining Garrison was turned into xining governing office, carrying on the Tusi system of the Ming Dynasty, and under the administration of Gansu province.

In 1912, the government of the North Warlords appointed Ma Qi as Xining Troops General. Since then, the Ma families ruled Qinghai for nearly 40 years. On September 5,1928, the Nanjing Kuomingtang government decided to set up Qinghai province administering Xining. In January,1929, Qinghai province as set up.

In 1949, the Ma's troops were defeated in the Lanzhou Campaign. Xining was liberated, and the political power of the Ma families died out. On september 26,1949, the people's army and government committee was founded. On January 1,1950, the people's government of Qinghai province was set up, Xining as the capital of the province. Qinghai entered a new historical period.

Nationalities

There are 43 nationalities in Qinghai Province. The population of minority people is 2.1 million, covering 42.8 % of the total population of Qinghai Province. The nationalities such as Tibetan, Hui, Tu, Sala and Mongol have lived in Qinghai for generations. Among them, Tu and Sala nationalities inhabit only in Qinghai. The percentage that different nationalities take in the total population of the province is as the follows:

Tibetan:21%

Hui:14.5%

Tu:3.7%

Sala:1.9%

Mongol:1.6%

Population

By 1998,the population of Qinghai Province is 5,002 million. Because of natural conditions and many other factors, inhabitation is not well-distributed. On the average,6.8 persons inhabit on 1 square kilometer. In Xining,190 persons inhabit on 1 square kilometer and 2.4 persons on 1 square kilometer in other prefectures.

Cultural Undertakings

In the whole province, there are 14 art ensembles, 38 public libraries, 249 folk art institutions at different levels, 2 art training schools, and 37 museums or relics protection stations. The development of the art undertaking is brisk. The above-mentioned 14 professional art ensembles have performed 887 times and have had 1.35 million audience altogether. In the national art competitions, 12 plays have won 17 prizes.

Achievements have been obtained in the protection and management of historic relics. More than 3,700 historic ruins at different times and of different kinds have been discovered in Qinghai Province. There are 633 institutions or places put under the protection at different levels, of which 4 are under national-level protection, 301 provincial-level, and 328 city or county-level.

Religions

Religions have a long history in Qinghai Province. They have exerted a wide influence in the society of Qinghai and has a profound social base. There are 5 major religions in Qinghai. Tibetan Buddhism (Lamaism) and Islam are the largest two religions spreading widely all over Qinghai Province. Catholicism and Christianity mainly spread in the cities and towns and in the areas along railways. Han Buddhism and Taoism mainly spread in eastern agricultural areas. According to recent data, there are totally 2085 temples in Qinghai, including 666 temples of Tibetan Budhism,1339 mosques of Islam,19 temples of Han Budhism,13 churches of Catholicism,36 churches of Christianity and 12 temples of Taoism. The number of clergy working for different religions has amounted to 26,800.About 50% of the population are religious in Qinghai.

Medical Care

The conditions for medical care in Qinghai Province In 2000, the national preliminary medical care standards were satisfied in 90 percent of the counties in the whole province. The coverage of rural medical care cooperatives in various forms reached 30 percent. The expected per-capita life-span was near 66. The death rate of infants and young children and pregnant women dropped to 0.46 percent and 19 out of 10,000 . The morbidity of either acute or chronic infectious diseases has decreased greatly. Serious local diseases like plague and iodine deficiency have been put under effective control. The three-leveled rural and pastoral medical prevention and health service network has been improved. A number of projects including Qinghai Children Hospital Outpatients Service Building and Qinghai Medical College Outpatient Service Building have been put into operation.

By the end of 2000, there had been 989 medical care institutions of all kinds, of which 5 were of A-level ones, 31 were B-level. There are altogether 16,500 hospital beds and 18,000 medical staff members.

Animal Husbandry

Qinghai is one of China's five largest pastoral areas. It has large expanses of grassland with little pollution and, therefore, is an ideal place to develop green animal products. Animal husbandry has been Qinghai's advantageous section and the backbone of its national economy. 96 per cent of the province's land area is for animal husbandry. For a long time, more than 500,000 people of over 100,000 households in 6 nationality autonomous prefectures have been involved in animal husbandry.

Qinghai has 31,641,400 hectares of grazeble grassland. About 88 per cent of the plant-eating livestock are distributed in the 6 pastoral nationality autonomous prefectures. By 1997, 1,741,100 hectares of grassland had been fenced and 782,400 hectares of grassland had been artificially sown. Besides, over 2 million square meters of livestock pens had been built and edible water had been provided to more than 1.5 million people and over 6 million livestock on the province's one fourth of dry grassland.

In 2000, Qinghai's total amount of livestock on hand was 20.83 million.；the output of beef was 66,000 tons, lamb 67,000 tons, pork 70,000 tons, eggs and poultry meat 13,500 tons, and wool 15,6000 tons. A total production value of 2.823 billion yuan was realized.

Fishery

Qinghai's fishery has stepped on the track of integrated fish farming comprising farming, resource protection and production value increase. Pool fish farming has also started to develop. In 1997, there were 8 state-owned fish farms and 144 households taking up fish farming. The total fish output was 1,753 tons, of which 1,026 tons was fished and 574 tons was farmed. The total fishery production value was 4,960,000 Yuan. The fishery products market is brisk and the price is stable. In order to make good use of Qinghai's cold water resources and develop cold water fish farming, trout farming techniques were introduced from Europe. In 1990, China's record in the yield of trout farming was chalked up in the Longyangxia Reservoir, which was 75.78 tons. The Longyangxia Reservoir had become one of China's large trout production areas.

Forestry and Afforestation

Qinghai's afforestation has enjoyed great expansion in the past 50 years. By 1997, Qinghai's afforestation area had added up to 1,832 square kilometers, which was 56 times more than that in 1949; 272,000 hectares of hillside had been closed to facilitate afforestation; and 130 million trees had been planted along the edges of farmland or riverside. In the eastern valleys, trees have been planted on almost all the edges of farmland and started to be planted on hillsides. The tendency of the decreasing in the forest coverage rate and the forest storage amount has been controlled. In 2000, 45,300 hectares of artificial forestry was planted and seedlings were planted and taken good care in an area of 91,500 hectares of nursery. In addition, 16,700 hectares of cultivated land was restored to woodland. 7,800 hectares of barren hills were made into pasture and on 21,500 hectares of barren hills trees were planted.

Qinghai's is on the sources of the great rivers in China. To protect and develop its forests is not only laying a solid foundation for Qinghai's economic and social development, but also is important to maintain the balance of nature in the sources of rivers and guarantee the industrial and commercial production in the middle and lower reaches of the rivers. From this aspect, Qinghai's forestry ecological construction takes a very important position in the whole nation's ecological control.

Resources

Mica:Mica is capable of insulation, heat resisting, anti-acid, anti-soda and anti-pressure and can be sliced into transparent thin pieces. It is used as insulation material in electronic devices and industries like metallurgy and machinery.Qinghai's mica deposits are mainly found in the ore beds in the A'erjin Mountains, middle of the Qilian Mountains, and north of the Chaidamu Basin. The proved reserve in the mica ore bed of Duoluo'ershiliuwugou is 1,054 tons. The preserved reserve ranks No. 5 in China.

Basalt:The proved reserve of basalt in Qinghai is 20 million tons, ranking No 2 in China.

Selenium:Selenium is used to produce rectifier tubes, photo-tubes, photometers, signal devices, TV sets and auto-control cells. The amount of the proved preserved reserve is 1,519 tons, ranking NO. 2 in China.

Crystal: Crystal is a colorless transparent quartz. It is divided into 4 types in accordance with the functions and useages. They are piezo-crystal, optical-crystal, smelting-crystal and art-crystal. Piezo-crystal is important in national defense and electronic industries. We have discovered 34 crystal deposits which are located in the Tanggula Mountains. It has been proved that in Wumantongdong piezo-crystal ore bed there are 29.7 tons of piezo-crystal reserve and 357 tons of smelting-crystal reserve, ranking No.2 and No.6 in China.

Asbestos: Asbestos has the characteristics of insulation, heat preservation, acid-proof, and septic-proof. It is widely used in industries. Asbestos is one of Qinghai's advantageous minerals. There are 32 deposits that have been found. They are in the rock belt in the A'erjin Mountains and north Qilian Mountains. The proved reserve is 57.61 million tons, accounting for 40.95 percent of the nation's total, ranking No. 1. The potential reserve is 11.100 million tons.

Gypsum: Gypsum can be divided into 2 kinds according to its constituents. One is gypsum, the other is hard gypsum. It is widely used in the production of cement, paints, medicines, agriculture and construction. We have discovered 90 deposits of gypsum. The proved reserve of E-level or above is 47 billion tons, ranking No 3 in China.

Serpentine: The proved reserve of serpentine in Qinghai Province is 7,660 million tons, ranking No. 1 in China.

Mud-charcoal: Mud-charcoal has drawn attention as a potential energy material with low cost. It can also be used in chemical industry, soil innovation, and as material for feed. Along the Yellow River valley and the Changjiang River Valley, 14 deposits have been discovered. The estimated reserve is over 100 million tons. It is believed that mud-charcoal will play an important role in the new century.

Solar Energy: Qinghai's annual solar irradiation amount is generally big, between 580 and 740 joules per square millimeter. It is one of China's biggest areas that enjoy abundant solar irradiation.

Hydropower: Qinghai has a profuse hydropower resource. It is located in the northeast of the Qinghai-Tibet Plateau and has a high and steep physical feature. The rivers are narrow, concentrated and have sharp drops. Both the Changjiang River and the Yellow River originate here and many other rivers wind their way through numerous valleys in this area. According to the results of prospecting, there are 108 rivers, whose electricity generating power each is 10,000 kw or more, along the Yellow River valley, the Changjiang River valley, the Lancangjiang River valley, and the inland river valleys. The theoretical hydropower reserve within Qinghai Province is 21 million kw. More than 170 hydropower stations with a capacity of 500 kw each or more can be set up. The total installed capacity is 18 million kw, with an annual power generating capacity of 77.2 billion kwh.

The theoretical hydropower reserve along the Changjinag River within Qinghai accounts for 20 percent of Qinghai's total. Of them, 1.8 million kw is developable. The annual power generating capacity is 10 billion kwh.

The theoretical hydropower reserve along the Lancangjiang River within Qinghai accounts for 9 percent of Qinghai's total. Of the reserve, 1.1 million kw is developable. The annual power generating capacity is 5,600 million kwh. The inland river valleys lie mainly in Qinghai's north and west. The theoretical hydropower reserves accounts for 7.6 percent of Qinghai's total. Of the reserve, 500,000 kwh is developable. The annual power generating capacity is 26,000 million kwh.

The Longyangxia Gorge is located in the joint of Gonghe County and Guinan County of Hainan Tibetan Autonomous Prefecture. It is 150 kilometers away from Xining City. The gorge lasts 40 kilometers. The surface water is 40 to 60 meters wide and the gorge is 200 to 600 meters deep. Longyangxia Hydropower Station, which is already in operation, lies at the entrance to the Longyangxia Gorge. It is the first one of the 15 planned hydropower stations from the Longyangxia Gorge to the Qingtongxia Gorge on the upper reaches of the Yellow River. The key dam is 396 meters long. The maximum height of the dam is 178 meters. The altitude on the top of the dam is 2,610 meters. The total installed capacity is 1.28 million kw and the annual power generating capacity is 6 billion kwh.

Lijiaxia Hydropower Station is under construction.

The hydropower reserve developed within Qinghai Province so far only accounts for 7 percent of the total and, therefore, there is great potentiality in the hydropower resource development

Agriculture and Animal Husbandry Resources

Agriculture Resources: Qinghai has the unique climate conditions for growing rape-seed, potato, beans, vegetables, flowers and other special farm products. Because Qinghai is located in the high plateau, sunshine is sufficient with great difference in temperature between day and night, specially fit for collection of dry matters for plants. Meanwhile, for the good nature environment in the agricultural area, there is no industrial pollution, so as to guarantee the production of unpolluted food. At present, Qinghai province is devoting efforts to developing characteristic agriculture, and based on the production of rape-seeds, potatoes, beans, seasonal vegetables and flowers, to develop some headmaster enterprises.

Animal husbandry Resources: As one of the five largest pastoral areas in China, Qinghai is an important production base of animal husbandry.

The amount of livestock on hand : 20 million

The production of nude sheep and cow: 18,000 t/y

The production of mutton and beef: 110,000 t/y

The production of sheep and cow skin: more than 4 million sheets/year

Main kinds of livestock: sheep, yaks, Hequ horses, Haomen horses Yushu horses, cattle, and camels. Among them, the amount of the sheep and yak is the greatest, and the amount of the yak in hand ranks the first in the country. The wool produced in Qinghai, called "Xining Wool ", possesses high resilience and tensile strength, enjoying great fame in the world markets. The beef of the Qinghai yak is very tender and tasty with rich nutritive value, which is in great demand in the markets both home and abroad. There are some other famous husbandry products, such as the purple lamb fur produced in Huangnan prefecture, Hequ horse in the Hequ area, Haomen horse in Haibei prefecture.

The output value of the animal husbandry occupies a great proportion in that of the province. The animal husbandry of the province supplies a great deal of materials for textile, leather, foodstuff, milk products, skin and fur, oil industry, and some medical & chemical industries in the country. Based on these materials, many products are made, such as, knitting wool, plush, carpets, leather coats, leather shoes, milk powder, butterfly, dried beef, and so on, so on and on, all of which sells well in the country. The leftover bits and pieces of these materials can be made into more than 100 by products, such as, protein glue, gelatin, biological medicine & preparation. Qinghai province is one of the important export bases of the country. She supplies a reliable resource guarantee for the country's export & foreign exchange earnings. Meanwhile, Animal husbandry promotes the development of growing industry.

The area of pasture in Qinghai reaches 36.45 million hectares of which usable pasture area is 31.6 million hectares. For the sake of the different feeding preserves in different seasons, animal bearing amount is varied greatly. Qinghai's natural pasture wins the features as large area, various kinds and high quality grass, which is suitable to feeding all kinds of livestock.

Petroleum and Natural Gasses

Qinghai's petroleum and natural gases are mainly distributed in the Chaidamu Basin. Its petroleum and natural gas production base constitutes Lenghu Oilfield, Gasikule Oilfield, Huatugou Oilfield, and Shizigou Oilfield. The Chaidamu Basin has an oil-bearing area of 147 square kilometers, belonging to 3 different eras. We have discovered 140 surface structural and 42 underground ones. Of the 90 structural tested by means of drilling, industrial gas field has been ensured in 22; industrial gas flow has been seen in 7 and gas signs have been found in 37. We have proved 17 oil fields. The preserved reserve is almost 200 million tons, ranking No.10 in China. We have also discovered 6 gas fields including Mahai, Dongtaijinai'er and Tuofengshan. The preserved reserve of natural gas is 47.21 billion cubic meters. The potential economic value of the preserved reserve is 7,082 million yuan, ranking No 6 in China.

The oil-bearing volume in the Chaidamu Basin is 19.57 billion tons. In 1998, it was estimated that the petroleum resource volume was 1.7 billion tons and the natural gas volume 300 billion cubic meters. The estimation proves that Qinghai's gas field development has great potentiality. In recent years, more petroleum and gas reserves have been discovered. Only in 1997, was 75 million tons of geological petroleum reserve proved, which has made Qinghai one of China's leading petroleum and gas productions bases. In 1989, the pipeline from Huatugou to Golmud was finished. In 1991, an oil refinery with an annual capacity of 1 million tons was built in Golmud City. It can refine 390,000 tons of petroleum of all kinds, 13,800 tons of propylene, 45,000 tons of liquefied petroleum gas, 37,000 tons of fuel oil and 10,000 tons of fuel gas.

Post and Telecommunications

Qinghai has introduced a number of telecommunication equipment and technology, which have made its telecommunication level on a new step. In 1999, there were altogether 297 post offices all over the province. In the field of telecommunication, the automatic dialing of long distance calls from Xining to other places both home and abroad has been realized. The exchange capacity of local call is 260,000 and the exchange capacity of rural call is 10,000. By the end of 1997, there had been 227,500 telephone subscribers of local calls and 6,500 subscribers of rural calls. On the average, every hundred people had telephones in the province while every hundred people in the city had 25.5 telephones. In the meantime, wireless telecommunication has met with great expansion. By the end of 2000, there had been 210,700 mobile phone subscribers.

Railway Transportation

Qinghai's railway transportation started in the 1950s and has been rapidly developed since reform and opening-up began. At present, there are 2 trunk railways from Lanzhou to Xining and Xining to Tibet, 4 sub-railways and 59 self-use railways of enterprises. Altogether, there are over 1,300 kilometers of railway in Qinghai Province and over 1,100 kilometers are under operation. In 1999, the total freight volume of railway transportation was 60,700,000 tons. The total number of passengers transported was 9.4 billion person kilometers.

Civil Air Transportation

Qinghai's civil air transportation began after the reform and opening-up strategy was put into practice. Since Xining Caojiabao Airport was built and put under operation in 1991, the volume of passengers and freight transported has increased at an annual rate of 40 percent in the past five years. At present, there are 10 airlines with 20 flights. In 2000, 70,000 passengers were transported; the distribution volume of freights was 930,000 ton kilometers.

Public Road Transportation

Public road transportation is Qinghai's dominant transport force. A public road network comprising 5 state-level,33 provincial-level and 330 county or town-level highways has spread over the whole province. All the trunk highways have been asphalted. In 2000, there were altogether 17,936 kilometers of public roads opened to traffic. The volume of freight transported was 3,865 tons and the freight distribution volume was 3.66 billion ton kilometers.

Metallurgical Inductry

In 2000, the outputs of the main products in metallurgical industry are as the follows:

steel: 429,100 tons

fine steel products: 363,900 tons

multi-crystal silicon: 11,900 tons

Ferroalloy: 164,000tons

Light Industry

There are 18 lines of light industry in Qinghai Province, including the processing of salt, plastic products, aluminum products, food, crafts and necessities for education, minority people and everyday life. More than 400 types with 3,000 subtypes can be produced. Some of the products with resource advantages and local characteristics have gained worldwide fame. They are salt, aluminum daily necessities, leather and wool products, carpets, liquor, honey, Chinese cordyceps wine, mineral water, and soft drinks.

Chemical Industry

By 2000, there had been 86 chemical enterprises in Qinghai Province. The total production value of the chemical industry had reached nearly 705 million Yuan and over 40 types of chemical products had been able to be produced. Some had gained good reputation at markets both home and abroad.

Qinghai produces over 40 types of chemical products mainly including synthetic ammonia, nitrogenous fertilizer, phosphate fertilizer, potash fertilizer, compound fertilizer, calcium carbide, caustic soda, hydrochloric acid, hydrochloride, PVC, sodium carbonate, organic amine, sulfur, boric acid, borax, potassium sulfate, sodium sulphate anhydrous, metal sodium and sodium bichromate.

Advantageous Industry Catalogue for Foreign Investment of Qinghai Province, P.R.C

The Advantageous Industry catalogue for Foreign Investment of Qinghai Province is approved for implementation by the State Economic and Trade Commission, the State Development Planning Commission, and the Ministry of Foreign Trade and Economic Cooperation.

Foreign investors who invest in the catalogue may enjoy the preferential measures formulated by the state and the preferential measures formulated in the Regulations of Qinghai Provincial People's Government on Encouragement of Foreign Investment.

1. The storage, preservation and processing of grains, vegetables, fruits, domestic animals and poultry products and aquatic products.

2. Planting of forest trees and introduction of fine tree varieties.

3. Rational development, utilization and conservancy projects of water resources.

4. Construction and operation of highways, independent bridges and tunnels

5. Mining, smelting, processing of copper, aluminum and zinc (wholly foreign-owned enterprises are not permitted.)

6. Development and processing of potassium resources.

7. Comprehensive utilization and processing of salt-lake resources.

8. Manufacture of new-type building materials.

9. Cultivation and processing of traditional Chinese medicine and Tibetan medicine.

10. Development and operation of tourist resort and necessary facilities thereof.fforestation; and 130 million trees had been planted along the edges of farmland or riverside. In the eastern valleys, trees have been planted on almost all the edges of farmland and started to be planted on hillsides. The tendency of the decreasing in the forest coverage rate and the forest storage amount has been controlled. In 2000, 45,300 hectares of artificial forestry was planted and seedlings were planted and taken good care in an area of 91,500 hectares of nursery. In addition, 16,700 hectares of cultivated land was restored to woodland. 7,800 hectares of barren hills were made into pasture and on 21,500 hectares of barren hills trees were planted.