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The Tibet Autonomous Region has come up with new policies to attract overseas investment in the region.
Companies investing in education, animal husbandry, high-technology and infrastructure sectors in the region will receive favorable taxes and financing services, according to a newly released supplementary document on rules of attracting investment to Tibet.
The package applies to both domestic and overseas investors, including those from Hong Kong, Macao and Taiwan.
It also includes special terms catering to the financial needs of overseas investors to encourage them to invest more.
For example, local overseas-invested enterprises can now apply for Renminbi loans directly from banks within and outside the area by using foreign exchange as a mortgage.
Domestic banks will also accept guarantees provided by foreign stake holders in a Sino-foreign joint venture to acquire loans for the firm.
To improve efficiency, the local government also promised to simplify the registration procedure for establishment of overseas-funded companies and to complete the examination of application documents within 15 days.
Tibet has lagged behind China's eastern and coastal areas in the opening-up process over the past two decades due to a limited transport network and harsh natural conditions.
But the "Go West" campaign that started early this year to promote development of the western interior regions added a strong impetus to the local economy.
With rich natural resources, the region now badly needs funds to improve water conservancy, transportation, telecommunications, power and utility services for a better infrastructure environment, local officials said.
The rich development potential of the land and determination of the local government to boost foreign investment has driven batches of overseas investors to seek opportunities in the area over the past few months.
Among the most attractive aspects to Hong Kong business people are resource exploitation and tourism, which are also the focus of the industrial development in Tibet over the next five years.
Local officials said overseas investors would be able to invest in the mining sectors and acquire stakes in mining companies.
Xu Mingyang, vice-chairman of the autonomous region, said Tibet is considering opening direct flights for travel groups to and from Hong Kong.
Presently, the number of overseas-invested projects in the area is just above 100 and mostly involved in the animal processing, handicraft and utility sectors.
In the next five years, the region will try to promote boundary trade and processing and labor exports to generate overall economic growth, according to Xu.
(China Daily 11/23/2000)
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