Special Supplement: Xi'an launches projects to draw investors

With 287 investment projects in the pipeline, Xi'an expects to attract more investment from Shanghai.

The projects, ranging from manufacturing, public utilities, real estate, culture and tourism to property exchange, were showcased at an investment fair in Shanghai in July, according to Chen Baogen, mayor of Xi'an, capital of Northwest China's Shaanxi Province.

Several Xi'an counties and districts, including Yanta, Weiyang, Yanliang, Lintong, Huxian and Gaoling, have also held separate promotional events to attract Shanghai investors, said Chen.

"Xi'an is already widely known for its abundant resources in cultural relics. And we are making great efforts to let potential investors know how sound and profitable the investment environment here is," he added.

For example, the government administrative environment has been greatly improved in recent years, the mayor said.

"We have simplified government administration procedures by introducing one-stop government services. Also, a green light has been given to domestic and foreign investors in terms of administrative approval," he explained.

Xi'an has made great strides in environmental protection in recent years.

"The city will create a sound environment that is not only suitable for investment but for living as well," Chen pledged.

Xi'an has also set up an international school, which can ensure a good education for the children of foreign investors and employees, he said.

Following the implementation of the Western Development Strategy, launched in 2000 by the central government in a bid to help the area catch up with the prosperous eastern regions, Xi'an has developed close trade and economic ties with Shanghai in recent years.

The actual investment flow from Shanghai to Xi'an amounted to more than 5.5 billion yuan ($705 million) in 2006, accounting for 13.1 percent of Xi'an's total domestic investment.

The momentum was maintained in the first half of this year, with Xi'an receiving 2.8 billion yuan ($359 million) in capital from Shanghai.

"We highly value the cooperative opportunities with Shanghai, which is one of the biggest trade and economic centers in the world," Chen said.

A number of renowned Shanghai-based companies, including Greenland Group, Green Valley Holding Co Ltd and Shanghai International Port (Group) Co Ltd, have opened businesses in Xi'an.

"They are the models for further trade and economic ties between Shanghai and Xi'an. We believe that more Shanghai companies will earn profits here in this ancient northwestern city," Chen said.

Citing some international surveys, which indicate that Xi'an has become one of China's hot investment destinations, Chen said that the city has developed a very sound and profitable investment environment over the last few years.

So far, 92 of the world's top 500 enterprises have set up businesses in Xi'an, realizing an actual foreign investment of up to $825 million last year.

"Xi'an has developed into one of the best cities in the western region in terms of introduction of foreign and domestic investment," the city mayor said.

Chen encouraged Shanghai investors to engage in the development of the hi-tech, manufacturing, industrial service, tourism and culture sectors in Xi'an.

"They are also encouraged to participate in construction of projects of urban metro, service outsourcing centers, cultural relic protection and public utilities. Xi'an will be an ideal place for Shanghai-based companies to shift their production base."

(Shanghai Start 09/07/2007 page4)