BTC Expeditions

Why we choose Jiangsu & Anhui province

Jiangsu:

Second largest tax payer in China
Choice of many international enterprises
Rapid increase of foreign investment
Preferential investment policy

Jiangsu province

Jiangsu province located close to Shanghai is one of the leading regions in business development and the second largest tax paying province in China. With its vast economic development demand, a wide range of foreign investments have been introduced and developed in recent years.

We summarized some key 2005 statistics which are the important factors for us to choose Jiangsu to be included in our business tour as follows:
From January to April in 2005, the foreign-invested project in Jiangsu ranks first by the total amount in the whole Great China. Customs statistics show, during this period, there are 2815 new foreign-funded projects sanctioned totally in Jiangsu, with  RMB 14,792 million of foreign capitals utilization on contracts, RMB 6,953 million of foreign capitals actually arrived, increased by 34.37%, 76.05% and 59.42% respectively compared with the same period of last year, rank first among all the domestic provinces.

The newest statistics from the Industrial and Commercial Bureau of Jiangsu Province show, from July to September in 2005, there are 1341 foreign-investment enterprises registered in the whole province, with total new investment amount 9.4886 billion US dollars. Among them, the manufacturing industry is still the core of foreign investments, and the increase of real estate investments is obvious.

By the end of September, the amount of the foreign capitals invested in the whole province reaches 123.6 billion US dollars totally. The enterprise's total investment, registered capital, and foreign side's subscription in Jiangsu are 22.7%, 15.1%, 22.3% higher than Shanghai respectively, and 60%, 54.9%, 61.4% higher than Zhejiang province.

It is reported, from the beginning of the year 2005, the foreign investments in Jiangsu area continue growing at top speed through utilization of its unique advantages.

Furthermore, the foreign investors in Jiangsu can obtain some investment preferential treatments. For example, since January 1st in 1998, as the State Council encourages the domestic investment project of development and foreign-invested project, the imported equipments can be exempted from the tariff and imports value-added tax within the range of the fixed one.

On the other hand, regarding the financing of foreign enterprises, the foreign investors can apply for the loan, long or short term, from the Chinese-funded banks, the Chinese-funded commercial banks, and the bank branch of foreign-funded banks, where they open their accounts. Also, foreign enterprises can publicly issue shares or bonds in the legal securities exchange within the territory of China or oversea capital markets.    
      
Anhui

Cheap land use and labor
New infrastructure
Convenient transportation
Benefit from State policy of exploring western China

Anhui province

With regard to Anhui province, the situation is a little bit different from Jiangsu as the advantages in both areas are different. Thus we have chosen a few cities of Anhui to be included in our business tour after taking into account the reasons as shown below.

As some statistics show, the pluralistic characteristic appears in the foreign investments source of Anhui Province has undergone significant transformation, and the sources of investments have been expanded from Asian regions and countries to the other parts of the world, particularly to America and Europe. The main factors of attracting foreign enterprises’ investments in Anhui Province are based on the local market factors such as its location and resources, its welcoming investment policies and appealing workforce environment.

A fast railway and a well-developed highway communication network have been built up in Anhui province for several years. Specifically, the straight line of railway reaches up to 2725 kilometers, occupy first place in Eastern China. As for air travel, there are over 50 domestic destinations within the whole country, and Hong Kong.

Besides, the postal system and telecommunications of Anhui Province are also highly developed and advanced and rank among the top ones in China. It is the third province in the country that developed digital communication network in all its cities and counties.

As for the investment policies, Anhui province also offers some preferential policies to foreign investors. For example, the fees for land use and development by foreign investment enterprises are reduced; directly exported products of foreign-investment enterprise, except when the state has other regulations, can be exempted from the value-added tax and consumption tax.

Another advantage is that, since Anhui belongs to midland China and the central government (Beijing) has allowed increasing western investment and strengthened the development of western regions. Anhui as a whole enjoys preferential policy which the government gives to the west regions.