Mayor and Party ecretary of Qionghai City
Thanks to the Asian forum being permanently held at Bo¡¯ao in Qionghai, a vigorous city which has thrived following the introduction of reform and opening-up policies a decade ago, the area has been attracting more attention from both home and abroad, especially since China¡¯s World Trade Organization membership.
    Ranked third in South China¡¯s island province Hainan, Qionghai has ambitions of being highlighted as one of the most shining cities in China ¡ª continual emphasis is placed on it by the nation¡¯s leader, concerning its importance as a city.
    People there are preparing to carry out a new round of development and construction promotions to attract more investment.
    Qionghai is proud of its long history, its ability to attract high-class professionals, its advanced culture and tremendous organisms. It is also one of the most well-known locations for overseas Chinese.
    Its beautiful Wanquan River and being the original site of the historic story ¡°Red Women Army,¡± provide the city with profound natural and historic culture to better cater for the need of attracting more investors.
    Preferential investment policies and the unique potential of its resources, together with the favorable social order, are all magnets for investors.
    And the city is ready to grasp more development opportunities in the new century to gain new momentum for further upgrades.
    Playing an important role in the development strategy of the province as a central engine for development, the city has drawn up a blueprint for the next five years.
    To forge it into a dynamic ocean city, an outstanding tourism city, an ecological model city and a commercial centre pose great challenges. To realize ¡°one year for minor development, three years for moderate development and five years for big strides in development,¡± the city is bracing itself for a second round of influx from catering industries.
    We are sincere in our attitude to the arrival of investors from home and abroad, in addition to tourists.
    It is our responsibility to supply friendly social and environmental surroundings and highly efficient governmental work and services to express Qionghai¡¯s desire to attract business.
    Qionghai is expecting a beautiful tomorrow and an even more splendid future.
By ZHAN LISHENG Express staff
Hainan, a shining pearl in the South China Sea, is making strong headway in its overall development efforts.
     Resting against the mainland and facing Southeast Asian countries and regions across the sea, Hainan occupies an important position in the Asia-Pacific economic circle.
     It is a leading supplier of rubber, coconut, coffee and pepper, tropical fruits and out-ofseason vegetables in China.
     The Boao Forum for Asia, a leading non-government and non-profit international organization, has set up its permanent headquarters here.
     The forum has aroused extensive attention at home and abroad, creating new opportunities for the province's opening-up and international economic and technological co-operations.
     Infrastructure in the province has witnessed rapid improvement in the past 15 years.
     Power supplies and the traffic condition are both good examples of improvement.
     Hainan is the nation's first province to open its third, fourth and fifth flight rights to overseas airlines and its two international airports - Hainan Meilan International Airport and Sanya Fenghuang (Phoenix) International Airport - have opened more than 200 domestic and international air routes to some 100 cities at home and abroad.
     The traffic network links all of the province.     The Around- Island Expressway, China's only expressway free of charge, has been put to full traffic.
     The Yuehai (Guangdong- Hainan) Passage, which started operating a few months ago, links Hainan to the mainland.
     It comprises two railways in Guangdong and Hainan respectively, and a train ferry to cross the 12.5-nautical-mile Qiongzhou Straits, which used to be a bottleneck crimping the development of the province.
     The province has 24 ports with a total handling capacity of 12.41 million tons.
     The sea routes reach 20-odd countries and regions besides the coastal cities in China.
     Hainan's economy has seen a steady growth in the past few years, with the economic structure being adjusted for the better.
     Its gross domestic product has kept rising at 10.7 per cent on average over the past few years.
     An industrial structure is beginning to take shape with the mainstays of natural gas, chemicals, building materials, beverages, food, medicinal goods, chemical fibers, textiles, machinery, electronics, metallurgy and information technology.
     The value of agriculture has been increasing by 9.6 per cent on average in the past five years and tourism income by 9.1 per cent.
     The province has laid out a series of preferential policies in terms of investment in fixed assets, tax incentives, financial priorities, tariffs, land use and visa handling, which has paid off.
     The province encourages and has put into practice different economic and technological co-operations and exchanges while making great efforts to improve the softer aspects of the investment climate.
     The province actually utilized foreign direct investment of US$7.75 billion and overseas loans of US$3 billion from 1988 to 2002.
     Its total imports and exports were US$25.37 billion in the period.
     The province has set up trade ties with 171 countries and regions worldwide.
     The Yangpu Economic and Technological Development Zone, Haikou Free Trade Zone, Yalongwan State-level Tourism Resort, and Straits Agricultural Co-operation Pilot Zone have all been attracting the attention of investors.
     International exchanges and co-operations have at the same time been moving increasingly closer.

    Detailed preferential policies have been made for the pharmaceutical industry in Haikou, capital city of South China¡¯s Hainan Province, to encourage more investment in the field, according to a top city official.
    Aiming at shaping Haikou into a pharmaceutical centre, or valley, a primary strategy of turning the city into a national level base for the production, sales and research and development of medicines has been put into place.
    Among many others, the favourable policies include: The definition of pharmacy, which refers to the production of chemical, biological and traditional Chinese medicines and related sales. Medical equipment manufacturing and medicine packaging are also included.
    The establishment of a special fund for the development of the industry, which comes from two parts: A fixed 150 million yuan (US$18 million) from the national fixed asset and local taxation, which is being used for the newly established pharmaceutical project, technology renovation in enterprises and other technologyrelated projects.
    The encouragement of pharmaceutical projects to be established or moved to the park.
    Several degrees of favourable rental are passed onto different investors, according to their input, with the most favorable being no rent at all, to those who pour more than 300 million yuan (US$36 million) into a project or if they are national-level medicine makers.

By LIU WEI Express Staff

    Launched in March 1992 by the State Council, the Yangpu Economic Development Zone ¡ª the giant petroleum and natural gas production base ¡ª is considered to possess the most potential among all of the port development zones in North Bay.
    Located on the east coast of the North Bay, on Yangpu Peninsula, which is northwest of South China¡¯s Hainan Province, the Yangpu Economic Development Zone occupies an area of 31 square kilometres.
    It is the only one in China to enjoy multiple preferential polices under the categories of a special economic zone, development zone, and taxationfavoured zone.
    It is equipped with road and sea communications, water, natural gas and electricity supplies, better drainage systems and advanced post and communication networks.
    It has already attracted a batch of enterprises of various sizes to settle there, in paper making, flour processing and fine machinery.
    Holding the ideal of a totally open policy to attract as much investment as possible, the area¡¯s leaders are trying to shape it as a modern, leading technological development zone, to better co-ordinate with the development of the tertiary industry.
    Preferential policies have been made in the fields of acceptable industries, land use, investment, financing and customs.
    Any project is encouraged if it will not harm the environment, destroy natural resources or overlap production.
    Regarding the land use aspect, companies have the right to use the area for 60 years once getting approval from the district land administration and tax does not have to be paid for 15 consecutive years.
    Those registering in the zone can apply for a business licence before injecting capital.
    If the investment of the project is under 200 million yuan (US$24 million), it only needs approval from the development zone.
    Any productive enterprises can get various favorable financial conditions, according to specific situations.
    In the tertiary industry, the project owner can receive financial support if the investment of the fixed asset is more than five million yuan (US$602,000).
    It is the same for commercial and trade sector investment.