ChineseBusinessworld.com > Introduction to Guangxi

Introduction to Guangxi

1. General survey

Located in the south part of the P.R.China. Guangxi Zhuang Autonomous Region is wide for about 610 kilometers from the north to the south and long for about 750 kilometers from the east to the west. The total area is more than 230,000 million square kilometers. There are six municipalities under the jurisdiction of the Region-Nanning, Liuzhou, Guilin, Wuzhou, Beihai and Fang Cheng Port; eight prefectures Nanning, Liuzhou, Guilin, Wuzhou, Qinzhou, Yulin, Bose and Hechi; eighty three counties (cities at county level). The city of Nanning is the capital of the autonomous region. Guangxi Zhuang Autonomous Region is one of the Nation's five Minority Autonomous Regions, where the twelve nationalities of Zhuang, Han, Yao, Miao, Dong, Hui, Shui, Yi, Jing, Molao, Maonan and Gelao, etc. are inhabited. The Region has a population 44. 4 million and overseas Chinese 1.5 million, 0.5 million living in Hong Kong and Macao.

2. Advantageous Geographic Position

Guangxi lies in the northern latitude between 2054' and 2623' and eastern longitude between 10428' and 11204', being one of the Nation's coastal provinces and regions. To the east is Guangdong, Hainan, Hong Kong and Macao; to the north and west is connected to Yunnan, Guizhou and Hunan provinces; to the northwest, it shares the border with Vietnam in about 1,020 kilometers of land frontier line; to the south, it faces the Beibu Gulf with 1,595 kilometers of water line. That is why Guangxi is so called as "Back to the Great Northwest, Face toward the southeast Asia." It is required by the Nation, "To play the full role of Guangxi as a channel of leading to sea for the southwest areas".

3. Transportation

Railway: the railway line is 2,293 kilometers. The established railway key lines are: Xiang-Gui, Zhi-liu, Qian-Gui, Li-Zhan and Nan-Fang, respectively leading to Hunan. Hubei, Guizhou, Yunnan and Guangdong provinces, and to the south leading to the port of Fangcheng, Beibu Gulf and the boundary city of Pinxiang. The railways under construction and plan to construct are: Nanning-Kunming, Qinzhou-Beihai, Hepu-Hechun, Litang- Zhanjiang( double lines) and Yulin-Wuzhou.

Highway: The line is 37,200 kilometers. Each county, city and 98 percents of the countryside and towns can access to cars. The region now has certain grade highway close to 21, 400 kilometers, the 65 km Grade B highway between Guilin and Yangsuo, and the 204 km Grade B highway between Nanning and Wuzhou have been constructed and under operation. The highways such as Nanning-Bose, Liuzhou-Guilin-Wuzhou, Wuzhou-Zhaoqing, Cenxi-Luoding and Qinzhou-Dongxing, etc. are being constructed.

Civil airlines: There are now three airports i.e. Guilin, Nanning and Beihai, etc. the airports of Guilin, Liuzhou, Wuzhou and Yulin etc.are under construction or plan to construct, and the Nanning and Beihai's are to be enlarged. The airports of Guilin, Nanning and Beihai are to newly construct, enlarge the runway and attached equipment enabling the passenger airplanes "Boeing 747" to take off and land. The Region has 22 international and domestic airlines, and has the flights to the big cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Xiamen, Kunming, Chongqing, Xi'an, Chengdu, Hangzhou and Hong Kong, etc. and has opened the direct airlines of Beijing-Nanning-Hanoi, Vietnam and Guilin-Fukuoka, Japan.

Waterway: Inland river waterline amounts to 4,521 kilometers, 2,317 kilometers out of which being deep above 1 meter. The inland river harbors like Wuzhou, Guigang, Nanning and Liuzhou etc. have already been constructed.

Sea Ports: Primarily, the two sea ports of Beihai and Fangcheng have been built; the Qinzhou, Tieshan and other's are being planned. The port of Beihai has two deepwater docks above 10,000 metric tons level; and port of Fangcheng has eight of the same, being one of the four big sea ports in the China South. Both of the two ports have established economic relations and trade ties with nearly 100 countries and regions. Ports of Fangcheng, Beihai as well as Qinzhou under construction are the ports where the transport distance is the shortest from our country's southwest provinces and regions to the southeast Asia, Africa and Europe, and which are the convenient channels of leading to ocean for the China Southwest.

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4.Features of Resources

(1)Climate: Guangxi extends across mid, southern and northern subtropical belts. It is mild in climate, rich in sunlight and plenty in rainfall. Its annual average temperature is between 17-22 degree in Celsius and yearly average sunshine time 1,600- 1,800 hours. The northern and the middle parts are free from frost for 10-11 months and no frost basically in the south. The annual average rainfall is between 1,250-1,750mm.

(2) Subtropical agricultural and forestry resource. Guangxi is one of the country's provinces and regions which have the most varieties of plants. Forestry resources. The regional forestry area covers 5. 22 million hectares, the forestry covering rate being 22 percent and the forestry reservation amounting to 242 million cubic meters. There are more than 1,700 kinds of trees and rich crop of pine, China fir, bamboo, tung oil and oil tea etc. Agricultural resources. There are 2.613 million hectares of cultivated land, paddy field and dryland accounting for 60.6 percent and 39.4 percent respectively, and there are 0.46 million hectares more of uncultivated land suitable for farming. The Region has more than about 800 cash agricultural, forestry products, native produce and specialties, among which the sugarcane output amount occupies the nation's second place; Shatian pommel, star aniseed, star aniseed oil, cassia bark and Lo Han Guo, the first; gum rosin, banana, pineapple, fluid rubber and shellac. The second; linchee and longan. The third; the subtropical fruits can find good conditions for development.

(3)Ocean resources. The continent coast line is 1,959 kilometers, coastal beach being 0.19 million hectares and raising square being 2,000 hectares. With smooth sea bottom, few rocks, shallow water, weak ocean waves, small change of water temperatures and salt content, and little pollution, the region is deemed with the world well known pearl--"the Sounthern Pearl"and is an ideal place for growing pearl, shrimp, shellfish, oyster and other rare aquatic products. The raising square which can be cultivated in short time is 27,000 hectares. The ocean fish varieties amount to more than 500. At the bottom of the Beibu gulf is the deposit of petroleum oil have been tried to tap out.

(4)Water energy resources. There are 937 small or large rivers with rainfall area above 50 square kilometers in Guangxi. The main rivers are; rivers of Hongshui, Liu, Yu, Gui, Xi, Zuo and You. The regional water energy reservation amount is 17, 5183 million kilowatts with installing capacity of 16,092 million kilowatts ( those already constructed and under construction accounting for 29.7 percent) and the annual power generation amount of 74.96 billion KWH. On the Hongshui River gathering the water energy resources, it is planned to build 10 laddertype power stations with the installing capacity of 12 million kilowatts and the annual power generation amount of more than 60 billion KWH.

(5)Mineral resources Non-ferrous metal. The guaranteed deposit of tin ranks the nation's first place, known deposit of antimony the second, silver the third, bauxite the fourth, tantalum the fifth, tungsten the sixth, zinc and titanium the seventh, lead, mercury and niobium the eighth. There are other rare metals like chromium, cobalt, beryllium, yttrium and scandium. Pinguo Aluminum Base. The guaranteed deposit of bauxite is 177 million metric tons, it's planned to be constructed by the end of this century and to produce 1.2 million tons of aluminum oxide, 0.5 million tons of electrolysis aluminum and 0.3 million tons of aluminum materials. The first stage project of 0.3 million oxide and 0.1 million-ton electrolysis aluminum has already begun to construct. The Dachang Tin Mine under construction will produce after completion annually 12,000 tons of tin as well as many kinds of metals like lead, zinc, antimony and rare metals. Manganese mineral. The guaranteed deposit amounts to 216 million tons, ranking the first place in the nation. Ferrous metal minerals, Bentonite ranks the nation's first place, limestone and talcum the second, barite the sixth; it is also very abundant in Quarts sand, marble, granite and Kaolinite. Coal, the known deposit is 2.378 billion tons and the guaranteed deposit amounts to 2.21 billion tons. The Region is one of the provinces and regions in short of coal.

(6)Tourism resources Guangxi's water and hills are outstanding, and the scenery is charming and gentle. Guilin is well-known for its beautiful hills and water. Each part of the region has its beautiful natural scenery with strong minority amorous feelings and features. The tourism zones opened to public up to now are. Guilin (including the tourism spots such as Guilin, Yangsuo, Xing' an and Longsheng); Liuzhou (including the tourism spots such as Liuzhou, Rongshui, Jinxiu and Sanjiang); Nanning ( including the tourism spots such as Nanning, Wuming, Long'an,Congzuo and Ningming ); the southeastern part of Gui (including the tourism spots such as Wuzhou, Guiping, Yulin, Luchuan, Beiliu and Rong county); Binhai (the city of Beihai), totally five. With smooth beach, white sand and wonderful view on the island, Beihai is a resort in which the tourists can enjoy the "three Ss"(sun, sand and sea) . Recently it has already been approved by the nation to be one international tourism zone for going vacationing. In 1993, the Region welcomed 0.52 million entry tourists.

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5. The Development Structure of Guangxi's Opening to the Outside World

The places approved by the State Council early or late that can enjoy the preferential treatments are: Beihai city (including Fangcheng port zone) coastal opening city: Cities of Wuzhou, Yulin and Qinzhou, counties of Cangwu, Fangcheng Nationalities Autonomous and Hepu-coastal economic opening zones; Nanning city-practicing the coastal opening cities' treatments; Pinxiang city and Dongxing town-boundary opening city and town, where the boundary economic cooperation zones can be established; Beihai city-the nation's tourism zone for going vacationing; the cities of Guilin and Nanning-Hi-Tech industrial development zones. The places approved by Autonomous Region People's Government to enjoy preferential treatments are: Liuzhou Municipal Hi- Tech industrial Development Zone; Nanning Overseas Chinese Investment Zone; Wuzhou Newly Established Foreign Processing Zone; Rong County Overseas Hometown Economic Development Zone; Overseas Chinese Investment Development Zone in Qiaogang Town, Beihai; Gutingshan Economic Development Zone in Liuzhou Prefecture; Hechi City Nationality Economic Development Zone; Hechi Prefecture and Farming Bureau's Economic Development Zone for Aiding Poverty; Economic Development Zone in the East of Bose City, Bose Prefecture; Economic Development Zone in the West of Yishan County; Luzhai County Comprehensive Economic Developmetn Zone; Huanjiang County Industrial and Commercial Development Zone; Bali Street Economic Development Zone, Lingchuan County; Guilin Overseas Chinese Economic and Tourism Development Zone; Liujiang County Economic Development Zone. From now on, the general thinking for speeding up the reforming and opening to the outside world is: to set free further the thoughts, to deepen the reform, to enlarge the opening, to breakthrough the "three along" (along the coast, along the border and along the river), to link with the north and open to the south, to explore the middle and to radiate the whole region. Taking Beihai, Qinzhou and Fangcheng as the focal point of opening to the outside world, we will give full play of the capital city of Nanning's role acting as an opening city, promote the further opening of the areas along the coast, border and river; make efforts to the Liuzhou Municipal Comprehensive Reform Experiment Zone, Yulin Prefecture's Towns and Countryside Comprehensive Reform Experiment Zone and Guilin Tourism Exploring Experiment Zone; construct the You River's valley economic development belt for aiding the poverty and Hong Shui River's comprehensive development belt focusing on the hydraulic electricity.

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6. The Present Situation of Guagnxi's Economic Development

(1)Through 44 years construction since the founding of the nation, Guangxi has developed greatly in its economy.

The levels of the Region's national economy and social development in 1993 were as follows:
The economic total amount: the Gross National Product 77.3 billion RMB Yuan; gross industrial and agricultural product 108 billion RMB Yuan (all at the prices of that year), local financial income 8.6 billion RMB Yuan.

Averaged by the region's population of 44.4 million, the gross national product 1741 RMB Yuan; gross industrial and agricultural output total value 2432.4 RMB Yuan, the economic level per capital is comparatively low.

*Industry:

The gross industrial product in 1993 was 69.6 billion RMB Yuan. The increased value in industry in the fields was 26.26 billion RMB Yuan.The industries in the fields of light industry, textile, chemical, machinery, electronics, metallurgy, non-ferrous metal , building materials, medicines, coal, transport and communication, forestry, and electricity power have certain foundation. In 1993, the whole region had more than 12,000 industrial enterprises. The main industrial product output were: raw coal 10.42 million tons; electricity generation amount 17.32 million KWH ( including hydraulic electricity 10.1 billion KWH and thermal electricity 7.2 billion KWH) steel 0.822 million tons; steel materials 0.731 million tons; ten nonferrous metals 131000 tons; timber (all the society) 1.9 million cubic meters; cement 14.3 million tons; plate glass 1.877 million weight cases; caustic soda 72,200 tons; yarn 77,000 tons; machine-make paper and paper board 0.5 million tons; sugar 2.3 million tons; canned goods 0.157 million tons; cigarettes 1.1 million boxes.

It is planned to build along the coast several large, medium scale steel plant, oil refinery mill, chemical fibbers factory and power plants gradually to form the coastal industries and other commerce with comparatively full sets and rational distribution.

*Agriculture:

The gross agricultural product value in 1993 was 38.4 billion Yuan. The increased value in agriculture was 26.08 billion RMB Yuan. The main agricultural products output were; foodstuff 14.95 million tons; cereal oil 0.4 million tons; sugarcane 23.1 million tons; flue-cure tobacco 55000 tons; hemp (flax, jute) 29800 tons; tea 19000 tons; moburry cocoon 16800 tons; fruit 1.843 million tons; meat 1.61 million tons, aquatic products 0.6 million tons.

*Energy resources:

The Region is rich in hydraulic resources and is suitable for developing the energy resource industries focusing on the hydraulic electricity, the region's electricity installing capacity amounts to 4.36 million kilowatts, the hydraulic amounting to 2.66 million kilowatts. Now the Region has Xijing Hydraulic Power Station, Dahua Hydraulic Power Station, Heshan Thermal Power Plant and Laibin Termal Power Plant as well as a group of medium, small scale power stations; the projects under construction are: the three large scale hydraulic power stations, i.e.two laddertype Tianshengqiao ( 1.32 million kilowatts, the first stage being 0.88 million kilowatts), Yiantan (1.66 million kilowatts, the first stage being 1.21 million kilowatts) and one laddertype Tianshengqiao (1.2 million kilowatts); the early stage works of the four hydraulic power stations, i.e. Longtan (4.2 million kilowatts), Datengxia (1.2 million kilowatts), Bose Reservoir (0.4 million kilowatts), are being done; the expansion of Louzhou Power Plant 2x0.2 million kilowatts has already begun; the project of Laibin Power Plant's Second Stage (2x0.3 million kilowatts)are being actively prepared; it is also planned to build large scale thermal power plants along the coastal industrial belt.

*Utilization of foreign capital and introduction of technology:

In 1978-1993, Guangxi used actually 670 million USD in introducing technology and equipment; in 1979-1993, it utilized actually foreign direct investment amounting to 2.4 billion USD. Now there are 4,370 Sino-foreign equity, contractual joint ventures and exclusively foreign owned enterprises, the exclusively foreign owned enterprises being 746, equity joint ventures being 2870 and contractual joint ventures being 754, Customers and firms of 43 countries and regions have come to Guangxi to make investment , and mainly in the fields of light industry, textile, garments, transportation, food stuff, machinery, electronics, agriculture, animal husbandry and fishery, chemical industry, building materials, tourism and real estate.
Construction projects and labor service cooperation. The projects concern the fields of industry, agriculture, building industry, animal husbandry and stock raising, and medical health. They are mainly distributed in the 18 countries and regions such as Hong Kong, Jordan, Vanuatu, Brundi, Rwanda, Gambia, Angora, Iraq, Gabon, Bangladesh , Somalia, Chad, Guinea, Pakistan, Thailand, Vietnam, Indonesia, the American Saipan and Quan.

*Science, Culture, Education and Health:

In 1993, there were 0.661 million of scientific technicians in the region's state-owned unit, 0.213 million being natural scientific technicians, in the whole year, 480 important research results in natural science and technology were achieved, five obtaining the state level award, 186 obtaining the award of Progress in science and technology of the autonomous region, 14 the Autonomous Region's "Sparkling Prize". In 1993, the Region had 24 ordinary universities, 123 middle class vocational institutes. 2,353 ordinary middle schools and 15,847 primary schools. In 1993, there were 0.6 medical health institutes and 0.1 million professional health technicians. In 1993,the regional athletes won 8 gold medals in the international matches.

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Survey to Development of Science and Technology in Guangxi

Since reform of the present system and opening to the outside world, the scientific and technological cause of Guangxi Zhuang Autonomous Region has been significantly developed. The autonomous region now has about 700,000 of professional personnel and specialists in various fields. Among these, 17,000 of them are high-level professionals such as chief and associate professor, chief and associate research fellow, senior engineer, senior agronomist; 148,000 of them medium- level professionals, such as engineer and agronomist. And there are 560 or more various scientific research institutes. During 1974-1991, there are 4,400 items of scientific and technological achievements have been gone through appraisement, among which, 3, 067 items have won state or provincial awards; and 1,271 items of invention and creation have been granted patent. A numerous achievements of these have been popularized for application the conditions for scientific research have also been greatly improved.
In recent years, to be focused on emphasis on the economic growth in Guangxi, a series of scientific and technological program, such as "Sparkle Program","Torch Program", "Blue Project", "Program to Replace Industry Products with New Generation" and "Project of Popularization of key Achievements" have been organized for implementation, which have made significant returns both on economics and society. Among the minority autonomous districts, some industrial exploitation zones for new and sophisticated technologies have been set up, such as Guilin industrial exploitation zone for new and sophisticated technologies,based on exploitation and development for electronic and new material technologies, is rated as state level exploitation and development zone, the Nanning industrial exploitation zone for new and sophisticated technologies based on exploitation and development of biological technologies is rated as province- level exploitation and development zone; cities, like Liuzhou, Beihai and Wuzhou, are progressively preparing this kind of zones.

Since 13 years of reform and door opening, Guangxi have established international relationship on scientific and technological cooperation and communication with more than 30 countries and regions, and with more than 10 countries for inter- government scientific and technologic cooperation. About more than 2, 000 foreign experts have been invited to Guangxi for lecturing and scientific and technological exchanges and communications; more than 1,000 of our specialist personnel have been abroad for scientific and technological investigations and observations or attending international academic conferences; meanwhile a lot of foreign technologies and equipment have been introduced into Guangxi, in turn, a number of technologies have been exported and transferred to foreign countries.
At present, Guangxi is implementing the strategy of activating Guangxi to flourish by science and technology and the scientific and technological program of the 8th 5 -year plan. The central task is to push scientific and technological achievements towards commercialization,industrialization and internationalization, to speed up the construction of the passage leading to the sea for the great southwest China, to carry out scientific and technological programs on various fields on a constant basis, and to cultivate the technological market in major effort. Striking from these, the exploitation and development of industries of sophisticated and new technologies, the construction of its exploitation and development zone and the comprehensive exploitation and development on coastal areas of the Beibu Gulf of Guangxi shall be given prominence . It is expecting that a scientifically and technically thriving, and economically developed new Guangxi will be risen in the Chinese southern territory.
Science and Technology commission of Guandxi Zhuang Autonomous Region.

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Brief Introduction to Guilin National New- Tech Industrial Development Zone (GNNIDZ)

Famed both as a scenic city and a cultural city with a long history, Guilin is around with thousands of hills and run through by a ribbon-like river. With its green hills, charming water, grotesque caves and exquisite rocks, Guilin is said to be "second to none in its scenery beauty." It is a city with a total area of 4195 square kilometers and a population of 1.28 million people, among which the city proper occupies 565 square kilometers and 0.53 million people.Each year it receives about 8 million visitors from home and overseas.But Guilin is by no means only rich in tourism resources but also enjoys conditions for investment.

First of all, Guilin positions itself as a key city in the Southwest of China, the political, economic and cultural hub of northern Guangxi and window of the Province opening to the outside world. Its ecological environment has been improved and on the way for perfection; it's basic construction also is well on the route for best development; its transportation radiating in all directions,highway,railway or airway; communications grows even faster and connects it with every corner on the globe. Main industries include rubber, pharmacy, electronics, machinery, light industry, textile, food, arts and handicrafts, etc.
Then Guilin enjoys a strong technological power. There are 13 colleges and universities, 21 specialized secondary schools, 12 technical schools, 13 research institutes under the administration of respectively the provincial and central government, 8 state-ministerial products inspection centers, 9 international trade and exhibition centers,training centers and exchange centers for science and technology, and tens of large-medium-size enterprises, all of which are equipped with advanced instruments and facilities for research, teaching and production. Among the nearly 3000 research achievements in recent years, items developmental and application, some rank at the advanced level nation-wide; and some even reach frontal international levels.And most are conducted in the Zone.

Finally, the Zone is not only one of the first group of State-approved high-tech in China, but also the first one in minority nationality regions. Thus it enjoys all preferential policies by the government, central or local. To better its environment for investment,the Municipal CCP Committee and the Municipal Government of Guilin resolved to execute a management system of "unified leadership, unified development and unified management" and a policy of "closed management,collective development, outside -bidding-inside-cooping and flexible postulation", Business friends from home and abroad are welcome to share with us the favorable investment environment and to mutually benefit.

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ENVIRONMENT FOR INVESTMENT

*Geographic Location

Situated in the eastern part of Guilin city and with the beautiful Li River winding away from it, the Zone covers an area of 21. 67 square kilometers, 10. 6 square kilometers of which is new construction area.

*Transportation

The Zone stands 2 kilometers off Guilin Railroad Station and is run through by a special line and a cargo station; the Hunan-Guangxi Railway also traverses the City, Transportation by route of the Li River goes to Wuzhou Harbor, then down to the Pearl River and finally reaches the South China Sea. The Highways of Guilin- Wuzhou and Guilin -Liuzhou link the City respectively with watergates to Southeast and Southwest Seas. Then the Guilin Airport whose 29 lines connect China's main cities and which directly links Guilin with Hongkong makes the transportation all practically convenient. The Liangjian International Airport under construction will be put into use by 1996 to further its favorable transportation environment.

*Basic Facilities

The Zone is in possession of a rich energy resource. Dongjiang Water Plant has a supply capacity of 60 thousand tons per day. There are 3 power stations whose total capacity reaches 183,000 kW. Qixing Post and Telecommunications Sub- Office has a program control telephone system of 20,000 phones and a radio calling service and mobile telecommunications service. Qilidian Sewage Treatment has a draining capacity of 40 thousand tons per day.

*Affiliated Service Facilities

The Zone consists of a complete set of service facilities which ranges from banks, customs offices, commodity inspection offices, hotels, restaurants, entertainment centers, schools, hospitals, and luxurious apartments.

*Scientific and Technological Potentials

The Zone has 30 thousand specialized technicians, 23 thousand students in its 7 colleges and universities and 12 technology schools.

*Trade Policy

1. On approval of the Customs, high-tech enterprises in the Zone can set up bonded warehouses and bonded factories.

2. NHTIDZ has established Import & Export Corporation which can provide 1/E agent service for enterprises in NHTIDZ.

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Brief Introduction to Nanning New & High- tech Industrial Development Zone (NHTIDZ)

Nanning New & High-tech Industrial Development zone (NHTIDZ) is a national-level by the State Council, which is a high-tech industrial base, a window opening to outside world, a radiation source spreading high- tech to traditional industries and a experiment area for deepening reform of Nanning city. Guided by the trend of S&T development and domestic and international market, NHTIDZ emphasizes developing products in bio-engineering, electronic information, new material, optic- machinery -electronic technology, new energy sources, high-efficient saving energy technology and other new processes and technology applied in traditional industries, promotes commercialization, industrialization and internationalization of S&T achievements.

*LOCATION

NHTIDZ is located in urban area of Nanning city, Guangxi , 3Km away from the center of city. Xixiangtang road, the main road of the city,crosses NHTIDZ from the east to the west. NHTIDZ is surrounded by expressway of the city, greenbelt, college and research institute, enjoying the advantage of Location, natural conditions and communications.

*OVERALL PLAN

The total planned area of NHTIDZ is 8.5 cubic kilometers, with initial development area 2.5 cubic kilometers, consisting of Center District High-tech Industrial Park, Villas District and Bonded District, 10 mid-experiment industrial bases and S&T street. In 2000, NHTIDZ will established 10 enterprises or groups whose annual output value is above RMB 100 million, achieve annual gross industrial output value of RMB 300 million and total income of RMB 4000 million in technology, industry and trade, earn foreign exchange of USD 50 million.

*MANAGEMENT SYSTEM

Administrative Committee for NHTIDZ is an agency of Nanning municipality, enjoying a municipal management control over economy and technology development of NHTIDZ, with 7 subordinate organizations:office management department, labor and personnel department ,industrial development department, industrial and commercial bureau,tax bureau, land plan and construction bureau, financial bureau.

*INFRASTRUCTURE

The total planned construction area of Center District is 274000 cubic meters, in which office buildings, factory buildings and residential buildings of more 100000 cubic meters have been completed at present. In High-tech Industrial Park of NHTIDZ with area 2.4 cubic kilometers, 66. 7- ha land has been developed at first, in which basic engineering, including opening road, electricity circuit, tap-water and drainage, telecommunication and land leveling, has been completed.

*FORMS OF INVESTMENT AND SERVICE

NHTIDZ is open to all investors at home and abroad, in which all ownership systems are allowed. Forms of investment: renting,transferring and participating share of the right to use land and selling, renting and participating share of factory buildings, contributing capital. Forms of cooperation: contractual joint venture, equity joint venture, etc. NHTIDZ can provide investors with whole- coursely service, including industrial and commercial registration and tax registration, finance, law, talents exchange and training, customs, security, information consultation, exhibition, conference room, entertainment and living residence.

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Brief Introduction to Liuzhou new & high-tech industrial development zone (LHIDZ)

Located in Liuzhou proper, the development zone is composed of the new region and the demonstration district. The total area is 16 sq.km in which the new region is 4 sq. km. In the zone, all kinds of preferential policies promulgated by the government of Guangxi Zhuang Autonomous Region and the Liuzhou municipality are practiced. A group of new & high-tech enterprises has being formed in the new region of the zone and the high -tech industrial will get developed in it. Liuzhou is a hub of communications in Guangxi and the south west of China. Railway, highway, waterway, and airway extend in all directions.Liuzhou harbor owns a fleet which can straight reach Hongkong. Liuzhou Bailian airport has the lines to Beijing, Shanghai, Xiamen etc. In the zone, 20 thousand program-controlled telephones have been brought into use already.

In the zone, a group of new & high-tech enterprises has being formed on many fields: integrating mechanical electrical engineering, electronic information, meticulous chemical engineering, new materials,new technology, biological engineering, energy economy. We welcome all friends at home and abroad to invest and to set up joint venture, cooperative and individual capital enterprises.

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Preferential Policies of the Three Industrial Development Zone (GNNIDZ, NHTIDZ and LHTIDZ)

Enterprises with foreign funds approved to be open in the Zone by the Chinese government are to be issued legal representative once they meet the conditions postulated for legitimate persons. Legitimate rights and interests of foreign investment enterprises to enjoy protections by the Chinese laws include ownership and control of their properties and disposal of their legitimate incomes.

1. investment rights and interests to be protected in accordance with the agreement on bilateral investment insurance and the agreement on avoidance of duplicate taxation signed between the Chinese government and that of the investor's home country.

2. rights in the scope of the approved contract to enact production and management plans , and to raise capitals to purchase goods and to sell products.

3. freedom in determining the organizational and personnel arrangement;in recruiting or dismissing personnel; in making salary standard, mode and bonus, and allowance systems; and in intaking or borrowing personnel from other provinces or cities with the consent from the Zone' Labor and Personnel Bureau.

4. right to remit overseas the legitimate capital and income of the staff's.

5. freedom in insuring with approved agencies.

6. rights to appeal to patent bodies and industrial commercial bureaus or bring the suit directly to the court, once patent right is infringed.

7. rights to appeal to arbitration bodies or bring the suit to the court if disputes over the execution of the contract can not be settled through consultation or negotiation.

8. rights to enjoy preferential policies in taxation, crediting,capital construction and shipment conditions, of the export products and high-tech.

9. rights to appeal, in the light of relevant laws, to departments concerned in solving problems in the process of investment, construction, management, liquidation, etc.

10.rights to receive compensation of their enterprises, which under extraordinary circumstances are requested.

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Commercial Projects of Guangxi

1. Name of project: Manufacturing Automatic Air Conditioner

2. New project description:

For the production of automobile air conditioners, we plan to manufacture condensers and evaporators by ourselves assembling scroll compressors made by Liuzhou No. 2 Air Compressor Factory and auxiliary parts from other factories. After assembling by ourselves the products can be mounted in trucks, minibuses and cars.

We plan to import the technology and the equipment for the production of condensers and evaporators
mainly for parallel current condenser and fin evaporators. Besides the production technology we still want to import the equipment as following:

(1) welding equipment

(2) header manufacturing equipment

(3) fin mills and dies

(4) flat tube forming machines

(5) assembling machines

(6) testing equipment

Production Plan
By the end of 1997 (the first stage) the annual output will reach 30 thousand units and by the end of 2,000 (the second stage) 200 thousand units.
3. Total investment estimated: Two million USD.
4. Suggested investment radio
Chinese partner: More than 50% Foreign partner: Less than 50%
5. Forms of foreign investment needed
a. capital ( ) b. technology ( ) c. equipment ( )
6. Predicted market share
domestic: 100 %; main area: China
abroad: % main area:
7. Cooperation forms
b. contractual joint venture ( )
d. other forms ( )
8. Return on investment: Discussed by both
9. Main situation of Chinese existing enterprise
a. name of Chinese partner: Liuzhou Switcher Factory
b. current ownership: State-owned Manufacture high-voltage and Low- voltage electric products
c. actual business scope
d. company premises and area for extension
e. fixed assets: 1 Million USD
f. radio of technicians overall workforce: 11 percent Coverage: 4101000cubic meters, Building floors:100,00cubic meters.
h. sales revenue: 100 million RMB
i. product market share
domestic: 100 % main area:

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Guangxi Scientific &Technological Exchange Center

Guangxi Scientific & Technological Exchange Center with Foreign Countries ( GSTECFC) was founded in 1984. It is affiliated to Science and Technology Commission of Guangxi, which is the section responsible for scientific and technological affairs in Guangxi local government, and is the mainly non-governmental institute for international science & technology co-operation and exchange between Guangxi and foreign countries in the world.

The Creed of the GSTECFC

  • Making friends around the world in order to improve international scientific and technological co-operation;
  • Helping enterprises and institutes to introduce experts, technology, equipment and investment as well;
  • Taking active part in international trading in technology and technological products;
  • Helping scientists, technicians and managers to go to working or training abroad;
  • Providing foreign enterprises and institutes with varies of services in Guangxi;
  • Services for the development of economy, science and technology in Guangxi by all means.

Currently Main Services of GSTECFC:

  1. Service of Import and Export of Technology and Technological Products. They include the services of biding, representing and meditating all kinds of international construction projections and import and export of full set technology and equipment, the services of representing and meditating all kinds of products purchase, the services of deeply processing all kinds of products and parts which import from foreign countries.
  2. Services of organizing the scientists, technicians and managers to investigate and train in abroad.
  3. Services of Holding all kinds of International Academic Conferences and Symposiums in Guangxi.
  4. Services of attending or holding all kinds of International Exhibitions in China or abroad.
  5. Providing all kinds of services to those who will work or train in abroad.
  6. Services of attracting experts from all over the world including Hong Kong, Macao and Taiwan Region.
  7. Providing all kinds of people from all over the world including Hong Kong, Macao and Taiwan with the services of entertainment and information.

GSTEFC sincerely wish to co-operate and contract with all kinds of institutes and people in the world under the basis of equality and benefit of each other.