Yunnan’s Investment Environment

【http://www.chinawestnews.net 】  【 2008-03-18 16:27 】 【来源: 云网 】

Transportation

·Civil Aviation          Yunnan’s Airlines has developed rapidly in recent years.There are more than 80 domestic lines and 8 international lines. Now there is an aviation network with Kunming as its base radiating to the whole country, and 9 international lines to Singapore, Bangkok, Kuala Lumpur, Yangon, Vientiane, Chiangmai, Osaka, Seoul,Hochiminh city and 2 regional airlines to Hongkong and Macao. In the province there are 10 airports of Kunming, Xishuangbanna, Mangshi, Simao, Zhaotong, Baoshan, Dali, Lijiang, Shangarila, Lincang(TBA). Kunming Airport is one of the 5 largest airports in China. Now, all the airports are equiped with advanced communication and navigation apparatus and can receive nearly 4.5 million passengers a year. ·Railway         The railway of Yunnan province has a long history since 1900. Now there are 6 trunk lines of Kunming-Hekou,Guiyang-Kunming, Chenddu-Kunming, Nanning-Kunming, Kunming-Yuxi, Guangtong-Dali railways, passenger trains and cargo trains run between Beijing, Shanghai, Xi’an, Chongqing, Guangzhou, Beihai as well as Hanoi in Vietnam. The annual passenger transport reaches 12,568,000 persons and cargo transport 11,190,000t. ·Highway         Yunnan has formed a fairly good communication network with Kunming as its center, the national and provincial highways as the trunk lines linking up sub-trunk lines, cities and the countryside, radiating to all parts of the province, connecting to Sichuan, Guizhou, Guangxi and Tibet as well as the neigboring countries such as Vietnam, Laos, Myanmar etc. By the end of 2001, the mileage of Yunnan highways has reached 163,953 km, second only to Sichuan Province in China, among which there are 7 national highway lines, 6,081 km; second Class highways 2,106 km, third Class highway 9,787 km, fourth Class highway 93,822 km, highway below Class IV 57,557 km,and now highway lead to every township. The highway trunk lines from Kunming, the provincial capital, to the whole province or other provinces and the border are as follows: Kunming-Wanding Highway(from Kunming to Wanding, namely the Yunnan-Burma Road, 870 km), Yunnan-Tibet Highway(Kunming to Yanjing in Tibet, 992km via Dali, Lijiang, and Diqing), Kunming-Hekou Highway(Kunming to Hekou via the Stone Forest, Kaiyuan and Mengzi, 471km), Kunming-Daluo Highway(Kuming to Daluo via Yuxi, Mojiang, Simao dn Jinghong, 865km), Yunnan-Guizhou Highway(Kunming to Guiyang via Qujing, 653km), Kunming-Baise Highway(Kunming to Baise in Guangxi via Stone Forest, Kaiyuan, Yanshan, Wenshan and Funing), and Kunming-Suijiang Highway (Kunming to Suijiang via Dongchuan and Zhaotong, 690km). ·Navigation         There are 6 river systems as Jinsha-Yangzte River, Lancang-Mekong River, Yuanjiang-Honghe River, Nanpan-Zhujiang River, Nujiang-Salween River and Dulong-Daying-Ruili-Irrawaddy River in Yunnan province, which ranks first in terms of water systems in China and is very rich in water resources. Exploitable water ways are over 8,000km, but being short of technology, the navigable mileage is only 1,324km. The local point of river navigation development is on the Jinsha River (the upper Yangtze) and Lancang River (the upper Mekong). There are Shuifu Port and Suijiang Port on the Jinsha River, and Shuifu Port is at present the No.1 river port in Yunnan. From Shuifu Port down the Jinsha River, the boat can reach Chongqing, Wuhan, Nanjing, Shanghai,etc., which is the longest inland waterway in China. The Lancang River with its lower reaches called Mekong is the only international river linking 6 countries in Asia. Its total water course is 4,880km with 2,130km in China and 1,200 km in Yunnan, and the China-Myanmar border river is 31km, with a very good perspective for river navigation. Now there are two big good river ports, Simao port and Jinghong Port on the Lancang River, and they are also the state-level trading ports in Yunnan province.

Living Conditions

·Food and Drink        Yunnanp depends on it’s natural resources and numerous products which provides Yunnan’s food and drink with abundant base of raw and subsidiary materials, it makes every country, nationality and sect’s diet civilization obtain vast space of development and creation. Various restaurants of different style spread all over the province’s communities of diet civilization, domestic and foreign friends who enjoys table delicacies can taste different famous dished of matchless Dian’s taste, also including Chuan, Yue, Jing, Xiang, Huaiyang’s taste and Western-style food. It’s a delight to have meals while accompanying music mixed with diet and civilization. ·Accomodation         Besides hotels, there are sufficient commercial&living buildings and villas in the province that can accomdates domestic and foreign travelling traders. ·Shopping         There are various commercial networks and markets all over the province that can provide presidents, travellers and investors with daily necessities of different kinds. In the province, not only tea, medicinal materials and diamonds of local products with distinctive features can be choosed, but also various handicrafts of primitive simplicity and unique style which enjoys great prestige both at home and abroad. In big cities, there are a group of supper markets, department stores, special shops and so on, with morden administrative style, extansive scope, advanced facilities. Foreign linked commercial companies such as WALL-MART, PRICE-SMART, CARREFOUR, B&G have been opened which can satisfy purchasing demands of different levels with their abundant source of goods, complete standars, various kinds, assembled famous brands and products of best quality.

Border Ports

There are now 10 state-level, 10 province-level ports and 86 border passes or trading places along the 4,060 km border lines, at the airports or river ports. The 10 state-level ports are: Kunming International Airport, Xishuangbanna Airport, Ruili, Wanding, Hekou, Mohan(Mengla County), Jinshuihe(Jinping County), Tianbao(Malipo County)ports, Simao River Port and Jinghong River Port. The 10 province-level ports are: Pianma of Lushui County, Tengchong County Seat, Yingjiang County Seat, Zhangfeng of Longchuan County, Nansan of Zhenkang County, Mengding of Gengma County, Menglian County Seat, Daluo of Menghai County, Cangyuan County Seat and Tianpeng of Funing County. These 20 state-level and province-level ports are now the windows of the state and bridges to southeast and south Asia.

Favorite polices for foreign investment

1. Foreign-funded enterprises concerned with energy, communication, water conservancy, environmental protection, agriculture, forestry, animal husbandry and other related industries with terms of operation longer than 10 years will be exempt from corporate tax for 2 years starting from the first profit-making year. These enterprises will receive a full tax rebate from local financial departments for the third, fourth and fifth years of operation.         2. Foreign-funded enterprises approved as high-tech enterprises with terms of operation longer than 10 years will be exempt from corporate tax from the first to second profit-making year. They will receive a full corporate tax rebate from local financial departments from the third to seventh year of operation. For the first three years of operation, the proportion of VAT designated to the local financial departments will be rebated by these departments. Upon expiry of the above-mentioned preferential terms, favorable tax rates may still be obtained for enterprises which fulfill requirements of provincial tax departments.         3. Foreign-funded enterprises involved in energy, communication, environmental protection and urban public utilities whose actual investment exceeds US$10 million will have the proportion of their VAT designated for the local financial departments rebated for the first 3 years of operation upon approval.         4. For foreign-funded enterprises reinvesting their profits in the province and their term of operation longer than 5 years, local financial departments will rebate corporate tax according to the amount reinvested.         5. Foreign funded enterprises engaged in agricultural projects by using non-cultivated land will be exempt from agriculture tax for the first three years. In the 4th and 5th years, the above taxes paid will be rebated by local financial departments.         6. Foreign-funded enterprises will be given priority in the allocation of land-use rights. Allocation of these rights will be at the same price level for all enterprises (domestic or foreign). Arrangements can be made to pay by installments if necessary. When foreign-funded enterprises invest in residential houses, they may sell 30 percent of the floor area at commercial housing price.