Shaanxi
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The province has three distinctive landforms from north to south. The Loess Plateau in the north has an elevation of 800-1,300 meters, and accounts for 45 percent of the total area of the province. The Central Shaanxi Plain in the middle averages an elevation of 520 meters. The Qinling and Daba mountainous areas in the south include the Qinling Mountains, Daba Mountains, and Hanjiang River Valley, accounting for 36 percent of the total area of the province. The Qinling Mountains measures 1,000-3,000 meters in elevation and the Daba Mountains in the southernmost of the province, 1,500-2,000 meters. Natural
Resources
1.
Minerals So
far, 91 kinds of minerals have been found in the province, 58 of which
have deposits ranking among the top ten in China. The reserves and output
of gold rank fifth and fourth respectively. The output of molybdenum amounts
to half of the country¡¯s total. The proved deposits of coal, the most
abundant mineral in the province, come to 161.8 billion tons. The Shenmu-Fugu
Coalfield in northern Shaanxi has reserves of 134 billion tons. It is
one of the best fields in the world because of its thick coal layer and
easy access and exploitation. In addition, northern Shaanxi has a gas
field with proved reserves of 350 billion cubic meters. 2.
Hydropower North
of the Qinling Mountains is the Yellow River system, composed of the Weihe,
Jinghe, Luohe, and Wuding rivers. South of the mountains is the Yangtze
River system consisting of the Hanjiang, Danjiang, and Jialing rivers.
The Hanjiang River, the largest river in the province, provides more than
half of the province¡¯s total water runoff. Shaanxi has an annual water
runoff of 42.6 billion cubic meters, which has a power-generation potential
of 14 million kw. Shaanxi
has more than 750 species of wild vertebrates, 79 of them rare. It is
home to 12 species of animals and birds under state protection including
the giant panda, snub-nosed monkey, and clouded leopard. Environment and current issues
In ancient times, Shaanxi was
endowed with lush grass and dense forest and was known as Nature¡¯s Storehouse
and Green Sea on Land, but over the course of many dynasties the beautiful
land was gradually destroyed and replaced by the Loess Plateau and crisscrossed
by gullies because of severe desertification, war and soil erosion. The
Yan¡¯an and Yulin areas are the most affected by the erosion on the upper
reaches of the Yellow River. This section of the Yellow River brings down
more than 100 million tons of silt per year.
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II.
Population
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Total population: 35.96 million. The population density is 174 persons per square kilometer. Population
growth rate: 0.713% Life expectancy
(average) Ethnicity:
The Han ethnic group
accounts for 99.4 percent of the total. Other groups include the Hui,
the Manchu,and the Mongolian. Literacy:
Primary-school graduates: 13.8
million (male: 6.93 million; female: 6.87 million) Junior-middle-school
graduates: 10.06 million (male: 5.68 million; female: 4.38 million) Senior-middle-school
graduates: 3.71 million (male: 2.14 million; female: 1.57 million) University and college
graduates: 854,000 (male: 531,000; female: 323,000)
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III.
Economy
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General
Domestic Product (GDP): 148.76 billion yuan
(1999) GDP growth rate: 8.4% (1999) Average GDP per capita: 3,834 yuan GDP ratio (1st, 2nd,
and tertiary industries): 20.5:
41.1: 38.4% Poverty
alleviation plan
Inflation
rate: Unemployment
rate: Revenues: 933 billion yuan Industrial
output value: 129.5 billion yuan Agricultural
output value: 34 billion yuan Foreign
trade: In 1999, the province had an
annual import and export volume of US$2.033 billion, its exports hitting
US$1.177 billion, and obtained a turnover of US$86.07 million from contracted
labor services in foreign countries, which involved 1,883 technicians
and specialized personnel. Foreign
investment: In 1999 the province had 157
projects involving foreign capital and had an actual utilization of US$265
million in foreign funds. It had 2,980 foreign-funded enterprises, and
many transnational corporations have settled in the province including
the Brother Company of Japan, the MEMC Corp. of the United States, the
Philip Corp. of Holland, and the Northern Electric Appliance Corp. of
Canada. Pillar
industries: Electronics, machinery, pharmaceutical
industry, chemicals, energy, foodstuff, and tourism. |
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VI.
Telecommunications
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Radios
and TV stations Shaanxi has 11 TV stations
and 11 radio stations, among which the Shaanxi People's Broadcasting Station
is the largest of its kind |
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V.
Transportation
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Highway The province is constructing
a highway transportation network comprised of nine national highways with
Xi'an at the core. The province has a total expressway length of 385 kilometers,
and the highways now reach 95 percent of the villages. Airport The Xianyang Airport is the
largest air hub in northwest China, and the expansion of the airport has
been started. The province has opened 119 domestic and international air
routes and has flights to 51 cities in China. |
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VI.
Projects wanting foreign investment
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¡¡Infrastructure, chemicals,
pharmaceutical industry, metallurgy, machinery, electronics, light industry,
foodstuff, and building materials |
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VII.
Favorable policies for foreign investment
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Article
1 The provisions are formulated according to the relevant stipulations
on foreign investment of the state and the situations of Shaanxi. Article 2 The provisions shall apply to the projects
of Sino-foreign joint ventures, Sino-foreign cooperative enterprises,
and foreign-owned enterprises within Shaanxi. Article 3 Foreign investors are preferentially treated
when collected land-use fee according to the following: ¡¡¡¡(1) Foreign invested enterprises
(FIEs) engaged in export, hi-tech industry, agricultural development,
energy, transportation, and social welfare enjoy exemption of land-use
fee. ¡¡¡¡(2) FIEs of production nature
are exempt from land-use fee within half of their contracted period,
after which, they are levied according to the defined in the contracts. ¡¡¡¡(3) FIEs contracted before
the provisions are issued are taxed according to their contracts. Article 4 FIEs are favored to the rights of land use,
development, utilization and management with the longest period of 70
years. The right of land use can be legally transferred, released, mortgaged,
and handed over. The procedures must go through with the land management
departments and procedure fees are discounted. Article 5 Foreign investors can choose the following forms of investment: ¡¡¡¡¡¡(1) Sino-foreign joint ventures, Sino-foreign cooperative
enterprises, and wholly foreign-owned enterprises. (2)
Compensation trade, material processing, processing with supplied samples,
assembling with supplied parts, and cooperative production. (3)
Contracting and leasing state-owned and collective industrial and commercial
enterprises. (4)
Purchasing small state-owned, collective, and private-owned enterprises.
(5)
Other cooperative forms allowed by laws and regulation. Article 6 FIEs in the fields of export, advanced technology,
agriculture, forestry, animal husbandry, energy, transportation and
public welfare will be exempted from local income tax, city housing
and land tax, and car license tax, while ordinary productive FIEs in
Xi'an can do so within 60 percent of the operation period. Beyond the
exemption period, FIEs can continue to enjoy tax reduction in case of
economic difficulty, which is only allowed with approval of taxation
departments. Article 7 FIEs are allowed to accelerate the fixed
asset depreciation for special reasons with the approval of the concerned
taxation bureau. Article 8 FIEs may achieve balance between foreign
exchange receipts and payments by product exporting. In case of transient
imbalance, FIEs which introduce by foreign currency projects of up-dated
technology, facilities of agriculture, energy, transportation, and telecommunications
shall submit manifest and can purchase China-made products for exports
with RMB with approval of the Shaanxi Provincial Department of Foreign
Trade and Cooperation. Foreign investors are encouraged to invest in
the infrastructure facilities and other projects in the economic and
development zones and hi-tech development zones. FIEs can be served
with foreign exchange service by the relevant foreign exchange department. Article 9 Priority is given to FIEs in the utilization
of public facilities, water, electricity, transport, and telecommunications. Article 10 FIEs
pay the same amount of money as state-owned enterprises for the needed
materials, telephone installation, water, electricity, transport, designing,
consultation and medical care. When purchasing the above-mentioned with
foreign currency within China, the charge is based on the FOB (free
on board) price. Article 11 FIEs have the rights to turn down the fees
and taxes other than those in the defined list of law and regulations.
Article 12 A special card or a certificate issued by
the Shaanxi Provincial Department of Foreign Trade and Cooperation to
staff and workers from Hong Kong, Macao, and Taiwan as well as from
foreign countries in FIEs shall enjoy the same national treatment concerning
accommodation, travel and medical care in Shaanxi and the charges can
be settled in RMB. Article 13 FIEs are allowed to get loans preferentially
for the needed production fund with approval of the banks of their deposits
and local banks. Article 14 If the domestic freight of the products
by FIEs is higher than that in coastal areas, the exceeding amount can
be properly subsidized by the Chinese side. The amount of subsidy shall
be specified by the concerned parties in the contract. Article 15 Foreign investors can entrust
their Chinese relatives and friends as their agency in China. They can
recommend their relatives and friends to work in their invested enterprises.
For the invested project involving investment over US$200,000 one of
relatives and friends of the outside investors can work in the enterprise
and change his or her status from agricultural to non-agricultural one.
For the investment over US$400,000 two can enjoy this policy. More than
three are not allowed for any project. Article 16 Enterprises established by
people with freely convertible currency from their foreign business
relatives and friends, with foreign share over 25 percent, shall be
treated as foreign invested enterprises and enjoy the preferential policies
thereof. Article 17 The go-betweens of FIEs successfully
introducing foreign investors into Shaanxi are awarded in ratio to the
introduced investment with RMB free of the income tax and individual
income regulation tax: (1)
After the operation of FIEs, the go-betweens are awarded with 0.1-0.3
percent of the actual foreign investment by FIEs within one month. (2)
The go-betweens of the compensation trade projects are paid with 0.1-0.3
percent of the actual contracted volume. Article 18 Foreign investors are not subject
to purchasing restrictions and can buy cars and daily-use articles through
concerned departments. Article 19 Foreign investors have the
rights to make an appeal to the local governments and relevant superior
departments in case of any infringement act. Article 20 The procedures of examination
and approval of the contract and the feasibility study report of the
establishment of FIEs cannot exceed ten days each and the license will
be issued within seven days. FIEs have the right to send their employees
abroad and go through required formalities with the Shaanxi Provincial
Department of Foreign Trade and Economic Cooperation. Article 21 These provisions are also applied
to the enterprises established by overseas Chinese and investors from
the regions of Hong Kong, Taiwan and Macao. Article 22 The right of interpretation
of these provisions belongs to the Shaanxi
Provincial Department of Foreign Trade and Economic Cooperation. Note: In case of differences of interpretation,
the text in the English language should be considered as the text of
reference. |