Doing Business in Jiangxi -- china.org.cn

I. Survey

(i) Geographic Location

Jiangxi is located in the southeast of China and on the southern bank of the middle and lower reaches of Yangtze River, situated at 31°23′–36°22′north latitude and 110°21′–116°39′east longitude. Bordering Zhejiang and Fujian province to the east, Guangdong Province to the south, Hunan Province to the west as well as Hubei and Anhui province to the north. Moreover, Jiangxi is the hinterland of the Changjiang Delta, Zhujiang Delta and southeast triangle area of Fujian province. With a total area of 166,900 square kilometers, Jiangxi is the largest province of the Eastchina, stretching about 620 km from south to north and about 490 km from east to west.

Jiangxi Province, called Gan for short, has 11 municipalities in all: Nanchang, Jiujiang, Ganzhou, Yichun, Shangrao, Ji'an, Fuzhou, Jingdezhen, Pingxiang, Xinyu and Yingtan, with the capital city of Nanchang.

(ii) Climate

Near to the tropic of Cancer, Jiangxi's climate belongs to typical subtropical humid climate, with annual average temperature 18.7℃ and sunshine duration 1,846.7 hours. On the other hand, abundant rainfall creates favorable conditions for farming with annual average precipitation of 1,340 –1, 900mm and a long frost-free period of 8–10months.

(iii) Population and Nationalities

In 2005, the total population of Jiangxi province was 43.112 million, 37.1% in urban area, and 62.9% in rural area.

Totally, there are 38 nationalities in Jiangxi, Han， with tht largest population of 42,995,600, taking 99.73% of the whole population of Jiangxi. The total population of all minorities is 116,400, taking 0.27% of the whole population. Among those minorities, Hui, She and Zhuang have larger population.

(iv) Infrastructures and Transportation

Communication

A 3-dimensional transportation network has been established, consisting of waterway, highway and airway transportation.

Railway: Beijing-Kowloon Railway from north to south and Zhejiang-Jiangxi Railway from east to west form a major railway network together with Yingtan-Xiamen Railway, Anhui-Jiangxi Railway, Henfeng-Nanping Railway and Ganzhou-Longyan Railway, etc. The total mileage is 3,070 km. In particular, multiple transportation have been put in operation from Nanchang to Xiamen and to Shenzhen.

Highway: Jiangxi has built a shaped highway network of 1,580km in length. The main roads and highways both connect Jiangxi with neighboring provinces and link the capital city Nanchang to the other 10 municipalities and districts. By the end of 2005, the length of roads and highways totaled 62,300 kilometers in Jiangxi province.

Waterway: Jiangxi waterway system mainly consists of the Yangtze River (Jiangxi section), Ganjiang River and Xinjiang River, which totals 5,638km. There are 54 ports in all with a total annual handling capacity of over 10,000 tonne, including Jiujiang Port (over 6 million tonne), Nanchang Port and Ruichang Port (3million-5 million tonne), 7 ports (1million-3 million tonne) and 44 ports (below 1million tonne). Nanchang International Container Handling Dock and Jiujiang International Waterway Transportation Center have been constructed, from which ships can reach all major ports of the world.

Airport: So far Jiangxi has 5 airports available: Nanchang Changbei International Airport (Grade 4C), Ganzhou Huangjin Airport (Grade 4C), Jingdezhen Luojia Airport (Grade 4C), Jiujiang Lushan Airport (Grade 4C) and Ji'an Jinggangshan Airport (Grade 3C), 47 air lines have been in operation, and cover many main cities of china. Several international lines have been approved by authority including Nanchang-Singapore、Nanchang- Kuala Lumpur、 Nanchang-Frankfurt、 Nanchang-Paris、Nanchang-Los Angeles and Nanchang-Vancouver. In 2005, civil aviation in Jiangxi had carried 2.06 million passengers and transported 17,000 tones of freights. At present, Nanchang Changbei International Airport is being enlarged to become a middlesized pivot.

Post and Telecommunication

Industry of post and telecommunication maintains sustained and rapid growth. New communication portfolio increased remarkably. In 2005, the total business value of post and telecommunication went up to RMB 26.1 billion Yuan. The capacity of program-controlled switchboards rose to 10.82 million terminals. The Internet subscribers increased to 3.17 million. In every 100 residents, there were 37.9 telephones available.

Power Industry

Jiangxi has sufficient power supply. In 2005, the capacity of generating electricity surpassed 6,620,800 kilowatts. The supply of electric power for industry, agriculture and residents' living is fully ensured.

Banking

Jiangxi has complete banking organizations, covering all the quarters of Jiangxi province. By the end of 2005, deposits of financial across Jiangxi totaled RMB 444.55 billion Yuan, among which, the bank balance of 275.3 billion was from citizens. And the credits held by provincial financial facilities in RMB totaled 301.9 billion yuan.

Insurance

Insurance maintains rapid growth. In 2005, there are 12 insurance enterprises, 44,200 insurance staff, RMB 8.98 billion Yuan insurance input; the insurance density is RMB 208 Yuan per person.

(v) Ecological Environment

Jiangxi has a superior ecological environment. By the end of 2005, there are 128 natural reserves in Jiangxi Province. Among those conservation areas, 5 are of the state level, 25 of provincial level, 1 urban reserve and 97 county-level areas. And the total areas are 902 thousand hectares, taking up 5.4% of the whole area in the province. 22 counties were approved as experimental reserve of the ecological demonstration area by the State Environmental Protection Administration covering 9,555 thousand hectares, which is 57.3% of the total area in the province.

(vi) Foreign Exchanges

Provinces and Cities of Friendship

The work of cities of friendship first started in 1984. And we have had 7 of friendship pairs of state level cities of friendship in different periods: Hessen of Germany, Kentucky of U.S.A., Utah of U.S.A., Gifuken of Japan and Okayamaken of Japan. There are also 20 city level cities of friendship. Interms of various activities such as visiting each other, negotiating about commerce, talents communication and technology training, the friendship between Jiangxi people and people from cities of friendship has been developing, the economic cooperation and commercial communication have been improving, the communication and cooperation in cemprehensive culture, education, technology and other fields have also been forwarding.

International Exhibition

China Jingdezhen International Ceramic Fair: It is organized cooperatively by China's Ministry of Commerce，China National Light Industry Council, CCPIT (China Council for the Promotion of International Trade) and the People's Government of Jiangxi Province. Since the year 2004,it has been holding annually in Jingdezhen, Jiangxi in October. This is a large international ceramics exhibition, which shows not only fine ceramics but also culture of ceramics as well as the tradeshow of ceramics.

Economic and Trade Seminar of Jiangxi & Taiwan: Taiwan Affairs Office of the State Council, and the Perple's Government of Jiangxi province organize it iointly. Since 2003, it has been holding annually in Jiangxi in September, famous for the largest scale, the most and the best customers in the middle of China; and it has become a significant seminar in China.

(vii) Higher Educations and Scientifi c Research

Higher Education

There are about 68 colleges and universities in Jiangxi, such as: Nanchang University, Jiangxi University of Finance and Economics, Jiangxi Agriculture University, Jiangxi Normal University and East China JiaoTong University. And totally, those universities have 16 Doctor training centers and 287 Master training centers, with 646,100 undergraduates pursuing 4-year or 3-year diploma, 9,860 postgraduates.

Scientific Research

In 2005, Jiangxi set up 1 national engineering technological research center, 45 province-level engineering technological research centers and 35 province-level key laboratories. 3,321 technological contracts had been signed with a business volume of RMB 1.11 billion Yuan. The number of patent applications was steadily on the increase, 2,815 patent applications were received, 1,361 were granted with patent rights. The number of nationally registered scientific and technological achievements rose to 207 and 5 of them were awarded the prize of State Scientific and Technological Award.

(viii) Tourism

Jiangxi enjoys high reputation for its unique picturesque scenery and places of historic interest, which offers great resources to tourism as an emerging industry. There are well-known porcelain-capital Jingdezhen, Mt. Lushan as one of the world's cultural heritages and Poyang Lake as the world's major wetland, Jingdezhen, Nanchang and Ganzhou as famous 3 national historic and cultural cities, 5 national natural conservation areas, namely, Jinggang Mountains, Sanqing Mountain, Longhu Mountain, Fairy Lake, and 11 national scenic resorts. Moreover, Nanchang, Jinggangshan, Pingxiang and Ruijin are the birthplace of Chinese revolutionary culture.

In 2005 Jiangxi welcomed 373,000 overseas tourists and 50.579 million domestic visitors. The total income in tourism amounted to RMB32 billion Yuan.

Some special local products of Jiangxi

Jiangxi is rich in local products，some primary foods are: Tangerine in Nanfeng, Navel Orange in Gannan, Black-boned Chieken in Taihe, Lily in Waizai, Rice in Wannian, Firecrackers in Pingxiang, White lotus in Guangchang and so on.

II. Economy

(i) Economic Development of Jiangxi

In recent years, the economy of Jiangxi has increased rapidly. In 2005, the GDP of Jiangxi reached RMB 405.62 billion Yuan. The total value of the primary, secondary and tertiary industry respectively amounted to RMB 77.00 billion, 191.49 billion and 137.13 billion Yuan, and respectively taking up 19.2%, 45.3%, 35.3%. Per capita GDP came to RMB 9,439 Yuan, over USD 1,000 dollar. The fiscal revenue totaled RMB 42.59 billion Yuan; the gross fixed assets investment raised to RMB 229.3 billion Yuan.

(ii) Resources of Jiangxi

Mineral Resources

Jiangxi abounds in mineral resources. A total of 166 mineral deposits have been discovered and 102 of 166 verified through geological surveys. 13 mineral deposits such as copper, gold, silver and tantalum rank the first in the country, 14 reserves such as tungsten, bismuth and beryllium rank the second and third place in the country. Copper, tungsten, tantalum, uranium, medium heavy rare earths, gold and silver are honored as Jiangxi's “Seven Golden Flowers”. Moreover, Jiangxi has set up the largest copper deposit of Asia and the biggest copper-smelting base of China.

Forest Resources

Forest area totals 10.6292 million hectares; Live tree reserves 354 million cubic meters. Forest coverage is as much as 60.05%, ranking the second place in China.

Water Resources

There are more than 2,400 rivers of various sizes across the province with a combined total length of about 18,400 km. The five major waterways in Jiangxi are Ganjiang River, Fuhe River, Xinjiang River, Xiuhe River and Raohe River. The quality of water from main rivers and lakes reaches the national class 2 or 3 standard. The gross volume of water resources in Jiangxi is 150.5 billion cubic meters and the volume per capita is above the average national level.

(iii) Industrial Development of Jiangxi

In 2005, the industry of Jiangxi developed very fast. The industrial added value amounted to RMB 145.55 billion Yuan; the contribution of industry to the economy was 51.6%. Industry has a sound economic efficient, and the profits of large scale industries reached RMB 11.55 billion Yuan. Six pillar industries, including Automobile & Aviation, Precision Instrument, Metallurgy & Metal products, Chinese Medicine & Biology medicine, Electronic Information & Electrical Appliances, Food Processing, Fine Chemicals & New Consttuction Materials, played a prominent role with an added value of RMB 49.72 billion Yuan.

(iv) Agricultural Development of Jiangxi

Jiangxi is a big agricultural province. Diversified farm products, such as grain, oil plant, vegetable, live pig, tangerine, navel orange and freshwater fish, take the lead in China. In 2005, the gross agricultural output valued RMB 114.30 billion Yuan, of which, grain yield totaled 37.08 billion jin.

(v) Commercial Development of Jiangxi

Actual Utilization of Foreign Investment

In 2005, 940 foreign-invested enterprises projects were newly approved, with 79 large newly signed projects whose foreign imestmeat volume exceed 10 million USD. The contracted foreign investment volume amounted to 3.88 billion USD. The actual utilization of FDI amounted to 2.42 billion USD. The industry projects, with investment volume exceeding 500 million, actually utilized foreign investment RMB 47.24 billon Yuan. More and More Fortunes 500 companies have settled in Jiangxi, with 21 projects invested by such companies.

Foreign Import &Export

Jiangxi province has import and export relationship with more than 180 countries and regions. In 2005, the gross volume of imports and exports totaled USD 4.06 billion, among which, USD 2.44 billion derived from export and USD 1.62 billion from import. The gross export volume of common trade amounted to USD 2.05 billion, taking up 83.9% of provincial export volume; and the gross volume of processing trade reached USD 390 million.

The Foreign Economic and Technological Cooperation

In 2005, the contracted volume of foreign contracted projects and labor cooperation amounted to USD 290 million. The turnover was USD 210 million. The volume of investment to foreign countries amounted to USD 31.41 million. Labors are mainly sent to 58 countries and regions. The primary countries are: Japan, Malaysia, Singapore, Indonesia, Zimbabwe, Sri Lanka and so on. The number of labors abroad is 7,052 at the end of the year.

Commerce and Circulation

In 2005, the retail rates of consumer goods in Jiangxi provice came to RMB 123.62 billion Yuan, the total trade of wholesale and retail business came to RMB 109.65 billion Yuan. The realized retail rates of catering industry amounted to RMB 12.33 billion Yuan, the number of various commodity trade markets is 2,395, among which, there were 72 commodity trade markets over RMB100 million Yuan, with the business volume of RMB 51.43 billion Yuan.

III. Investment

(i)Policy and Administrative Rules

Catalogue of Related Laws

Foreign Trade Law of the People's Republic of China

Customs Law of the People's Republic of China

Law of the People's Republic of China on Import and Export Commodity Inspection

Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures

Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures

Law of the People's Republic of China on Foreign-Capital Enterprises

Company Law of the People's Republic of China

Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine

Law of the People's Republic of China on Control of the Entry and Exit of Aliens

Law of the People's Republic of China on the Control of the Exit and Entry of Citizens

Securities Law of the People's Republic of China

Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises

Individual Income Tax Law of the People's Republic of China

Law of the People's Republic of China on the Administration of Tax Collection

Environmental Protection Law of the People's Republic of China

Law of the People's Republic of China on Evaluation of Environmental Effects

Law of the People's Republic of China on Promotion of Cleaner Production

Law of the People's Republic of China on Prevention and Control of Desertification

Marine Environment Protection Law of the People's Republic of China

Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution

Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste

Law of the People's Republic of China on Prevention and Control of Water Pollution

Law of the People's Republic of China on Prevention and Control of Environmental Noise Pollution

Law of the People's Republic of China on Prevention and Control of Radioactive Pollution

Frontier Health and Quarantine Law of the People's Republic of China

Labour Law of the People's Republic of China

Trade Union Law of the People's Republic of China

Searching Website for the Related Laws

1. Searching System of Laws and Regulations of China (website of National People's Congress of China)

http://law.npc.gov.cn:87/home/begin1.cbs

2. China Legislative Information Network System

http://www.chinalaw.gov.cn/jsp/jalor/index.jsp

3. Ministry of Commerce

http://www.mofcom.gov.cn

The above-mentioned websites are for reference only.

(ii) Catalogue of Advantageous Industries in the Central and West China Jiangxi Sector:

1. Development of follow-up industries of key ecological engineering such as converting cultivated and back to forest or grass land

2. Development and application of irrigation technology

3. Further processing of rare earths and production of applied products

4. Further processing of tungsten and molybdenum

5. Producing of household pottery and porcelain of top grade for daily use

6. Selecting smelting of pink quartz, silica，black talcum, dolomite for chemical use and other non-metal minerals

7. Development and application of organics silicon

8. Production of gibberellins

9. The construction and operation of gas supply, heating supply and water supply (controlled by Chinese enterprises in large and medium- sized city)

10. The development of scenic resorts, the construction, protection and operation of relative infrastructure

11. Transportation of highway passengers

(iii) Procedure for Estabishing Enterprise

1. Requirement

Conforming to “Guiding Catalogue of Foreign-invested Industries” and “Catalogue of Advantageous Industries in the Central and West China”.

2. Rights of Examination and Approval

(1)According to“ Decisions of State Council about the Reform of Investment System”(No.20, 2004) and Ministry of commerce“ Circular on Administrating in accordance with Laws and Making Concerted Efforts to Carry out the Work of Examination and Approval of Foreign-invested Enterprises” (No.3, 2005), the rights of examination and approval of contracts and chapters of foreign-invested enterprises are listed as follows: the encouraged and permitted foreign- invested enterprises as well as enterprises invested cooperatively by Hong Kong, Macao, and Taiwan with total investment (including increased amount less than $100 million), the restricted foreign-invested enterprises and enterprises invested cooperatively by Hong Kong, Macao and Taiwan, with a total investment (including increased amount) of less than $50 million (not including equal to $50 million)

(2) According to Article 9 of “Opinions on Further Optimizing Soft Environment of Foreign Investment and Operation”released by People's Government of Jiangxi Province on, Aug 20, 2001, the rights of examination and approval of contracts and chapters of all municipal foreign- invested enterprises are listed as follows: The encouraged and perinited foreign-invested enterprises with total investment less than $30 million (including increased amount) (except otherwise provided in laws and administrative rules). The authority of examination and approval of restricted foreign-invested projects is excluded.

(iv) Residing Environment

Jiangxi is renowned for its picturesque landscapes, convenient facilities and pleasant residence. In 2005, the air quality of 9 cities reached the state second level standard. These cities are: Nanchang, Jingdezhen, Pingxiang, Yingtan, Ganzhou, Yichun, Ji'an Fuzhou and Shangrao. And Jiujiang and Xinyu reached the state third level standard.

Medical Care and Hygiene

In 2005, there are 10,664 medical care and hygiene organizations in Jiangxi province. Among them, there are 488 hospitals, 1,519 rural clinics, 115 diseases preventing and controlling centers, and 112 health caring hospitals for women and children. The hygienic personnel in Jiangxi Province amounts to 116 thousand.

Driving License

People holding foreign motor vehicles driving license can apply for the motor vehicle driving license of P.R.C.

(v) Reference Prices of Basic Elements

IV. Development Zones

(i) State Level Development Zone

Nanchang State High-tech Industrial Development Zone

Nanchang State High-tech Industrial Development Zone is a state level high-tech industry development zone, covering an area of 231 km2, among which an industrial area of 32 km2 has been completed in construction. This zone is the best area within Nanchang in terms of air quality and ecological environment, with efficient traffic and garden-style forestation. Infrastructure is completed, the supporting facilities are available and the industrial area has already attained the goal of“Seven Supplies and One leveling”, including construction of highways, program-controlled telephones, high speed broad band computer network and so on. Four pillar industries of Electronic Information & Application Software, Biology Medicine, Integration of Optics, Electronics and Machinery and New Materials have been primarily set up. The strategies of industrial development are to give priority to high-tech industry, attach much importance to software industry, devote great efforts to the growth of modern manufacturing industry and offer supports to the tertiary industry.

Nanchang Economic and Technological Development Zone

Nanchang Economic and Technological Development Zone is approved by the State Council in 2000, covering an area of 118 km2 with a population of 180,000. The planned area of the industrial centre is 40 km2, among which 27 km2 has been developed. Favored by its unique advantages in location, infrastructure, low cost of investment and sincere civil service, it has formed a manufacturing base mainly for four pillar industries such as Automobile Manufacturing, Electrical Appliances, Electronic Information and Modern Papermaking, and has already become a key link of export-oriented economy in Nanchang.

Jiujiang Export Processing Zone

Jiujiang Export Processing Zone is so far the unique national export-processing zone in Jiangxi province. With a planned area of 2.81 km2, the zone is located in the northeast industrial area within Jiujiang Economic and Technological Development Zone, only 9 km away from the downtown of Jiujiang. It has significant advantages in location, traffic and infrastructures. Under a unique management pattern, the zone has set up customs, administration of inspection and quarantine for export and import, banks, warehouses and transportation agencies etc, so that all procedures relating to import and export can be settled within it. In addition, all enterprises registered in the zone are entitled to favorable taxation policies and can enjoy efficient high quality services. The zone is concentrating on the development of Electronic Information, First-order Instrument and New Type of Materials in tandem with support for clothing for export, food and other industries.

Nanchang Export Processing Zone

Nanchang Export Processing Zone is one state newly approved state level export processing zone with a planned area of 1 km2, which is located in Nanchang state High-tech Industrial Development Zone. Nanchang Export Processing Zone will link the processing industry transfer of Changjiangj delta and Zhujiang delta. This zone mainly supports industries including micro electronic information, resource further processing, photoelectron industry, biology medicine, electrical appliances and so on. The purpose is to form a special industrial area showing and densely processing enterprises.

(ii) Provincial Development Zone

Jiangxi has 90 provincial industrial zones, scattering in the 11 boroughs of the province.