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TOPICS THIS ISSUE:
Guangdong most Attractive to Foreign InvestmentSouth China's Guangdong Province would remain the country's most attractive destination for foreign investment despite SARS (severe acute respiratory syndrome), according to its Vice-Governor You Ningfeng. Mr. You made the remarks during his information briefing with managers from the world's top 500 companies in the province. Mr. You said Guangdong enjoyed advantages in fields like manufacturing, its market potential and overall investment environment when attracting foreign investment. "We will certainly tide over the negative impact SARS on our economy as those advantages we had were not shaken by SARS," You said. "Meanwhile, Guangdong is enjoying the status of being China's top economic power, which will provide greater development opportunities for foreign investors," he said. Guangdong's GDP topped RMB 1167.4 billion (US$ 140.7 billion) in 2002, accounting for 11.4% of China's total GDP. "Though Guangdong is seen as one of the favorite investment destinations in China, we will continue to work to improve our soft and hard investment environment for investors," Mr. You said. Guangdong received US$ 157 billion of actual foreign investment in 2002, accounting for 35.2% of China's foreign investment. (Source: Xinhua General News Service) Shenzhen's Export BoomThe southern city of Shenzhen, in China's Guangdong province, saw its exports increased 32% year-on-year to US$ 21.87 in the first five months of this year, leading to a trade surplus of US$ 2.22 bln, according to China's Ministry of Commerce (MoC). According to the MoC, between January and May of this year, Shenzhen's foreign-funded companies recorded exports totaling US$ 13.58 bln, up 40.3% on the same time last year, while state-owned enterprises (SOEs) exports were valued at US$ 6.83 bln, up 12.7%. According to the MoC, Shenzhen's imports also rose 34.7% to US$ 19.65 bln during the first five months of this year. The ministry also said Shenzhen's actual foreign investment in the first five months increased 10.2% year-on-year to US$ 1.67 bln, while contracted foreign investment dropped 19.1% to US$ 1.59 bln, with a total of 938 foreign investment projects approved, an increase of 11.9 pct on the same number last year. (Source: AFX News Limited) Guangdong, Hong Kong & Macao to Establish an Arbitration Center for the Greater Pear River DeltaA spokesman for the Hong Kong International Strategic Development Board disclosed that relevant authorities are now working on a Code of Commercial Law for the Greater Pearl River Delta (GPRD) and the establishment of an international arbitration center in Macao. The code and the arbitration center will been designed to minimize the inconvenience in investments in Guangdong Province, Hong Kong and Macao due to their respective legislative differences. (Source: SinoCast)
Shenzhen to Relax HK Visa Rules for FirmsHong Kong business leaders have warmly welcomed the move to relax visa regulations to make it easier for Shenzhen businessmen to visit Hong Kong. Small and Medium-sized Enterprise Association chairman Shi Kai-biu said it would bring fresh capital and talent to the Hong Kong side of the border and help kick-start the economy. Under the new policy, a private business in Shenzhen that pays more than RMB 50,000 (HK$ 47,000) a year in taxes can apply for one-year, multiple-entry visas to Hong Kong for its employees. Owners of smaller firms can apply for three-month, multi-entry visas. State-owned enterprises, government-supported hi-tech firms and joint-venture businesses are also eligible to apply for the multi-entry visas for their staff as long as they meet higher tax threshold than will be imposed on private businesses. The measures, announced by Shenzhen Public Security Bureau Entry and Exit Office on Sunday, take effect on July 1. Applications for the visas could be made at police stations. (Source: South China Morning Post) GZI Transport in US$ 800m Road ProjectsGZI Transport, a Hong Kong window company of the Guangzhou municipal government, has committed US$ 800 million to three toll-road projects in the municipality, according to its deputy chairman. Yin Hui said the investment was aimed at capturing soaring traffic flow in Guangzhou on the back of rising foreign direct investment and car ownership. The projects, which would take three to four years to complete, would link the city with the eastern and western parts of Guangdong, he said after the company's annual general meeting yesterday. "It is very hard to find decent projects like these in Guangzhou or even Guangdong in terms of returns and traffic flow," he said. "The projects are important to the company's future earnings." He said the internal rate of return of each project was nearly 15%, which is at the top end of the industry average in Guangdong. Construction of the toll road, 33% owned by GZI, will begin in October. (Source: South China Morning Post) China's Guangdong province to Launch Rural Tax ReformsIt has recently been reported that on July 1, the southern China's Guangdong province will launch its rural tax reforms reducing the tax burden on farmers by more than 50%. It is believed that the reforms will save farmers a total of RMB 3.352 bln in tax payments annually. According to undisclosed sources, the Guangdong finance authority will set aside RMB 2.03 bln each year to subsidize local governments' fiscal shortages as a result of the reforms. China's central government-sponsored rural tax reforms have already been implemented in some areas despite several local governments' experiencing fiscal trouble, while the reforms were aborted in other areas as the local authorities were already in substantial deficit. According to a CCTV report, Taihe County in eastern Anhui province, which receives approximately 80% of its fiscal revenue from rural taxes, carried out rural tax reforms in 2000. As a result of the reform, the per capita annual tax burden of the local farmers dropped to RMB 69 in 2000, down from RMB 140 in 1999, but at the same time the county's fiscal revenue was reduced to RMB 87 mln, down from RMB 187 mln a year earlier. Resulting in a deficit of more than RMB 60 mln. The county's fiscal revenue totaled RMB 91.03 mln in 2001, which was barely able to cover its salary expenditure of RMB 99.55 mln. It was also reported that in Wuxian county, in the central province of Hubei, and Xuanhan county in the southwestern province of Sichuan, where the rural tax reforms are suppose to be in place, many township-level governments continue to impose heavy taxes and duties on farmers in defiance of the central government's ban on the practice, due to fiscal difficulties. (Source: AFX News Limited) Southern China's Hainan Island Lures Huge InvestmentChina's southernmost Hainan province received over RMB 4 billion (US$ 482 million) in both domestic and foreign investment during the first five months of this year, according to statistics released by the provincial investment office. The province received US$ 273.08 million in foreign investment during the first five months of this year, up 52.9% year-on-year. 93% of the province's total foreign investment was concentrated in the two cities of Haikou and Sanya and the Yangpu development zone. The Yangpu development zone alone lured US$ 95.35 million in foreign investment during the first five months, ranking first in the province for foreign investment. In addition, a large number of large domestic group companies have invested heavily in the province. The Shanghai Jinmao Group invested RMB 1.5 billion (US$ 180 million) to build a five-star hotel. (Source: Xinhua) China Lawyers, Notaries, Patent, Copyright and Trademark
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