Special Supplement: Picturesque Guilin in bid to strengthen industrial sector
By Wang Yi
Updated: 2007-11-15 06:50
Sailing down the Lijiang River with its enchanting karst landscape is an unforgettable experience.
Guilin, one of China's most popular tourist cities, is gearing up to attract investment in a bid to boost its industrial sectors.

Situated in the northeast of the Guangxi Zhuang Autonomous Region in South China, the city has long been known for its picturesque landscape and rich historical heritage.

While tourism is still seen as Guilin's pillar sector, local authorities have decided to intensify efforts in spurring growth of other industries as well, according to a new development strategy released recently by the city government.

Authorities plan to optimize the city's industrial layout and structure, and help nourish local brands, seeking to push forward the industrialization process and strengthen the leading role of industry in the local economy.

An area of about 100 sq km in west Guilin, covering three counties and three districts of the city, has been designated as a core region for the fulfillment of this goal.

The planned industrial region, far away from scenic spots and natural reserves like the Lijiang River, will focus on five sectors - industry, commerce, logistics, airport economy and administrative services.

The State has poured tens of billions of yuan into building infrastructural facilities in the region, thus laying a solid foundation for industrial development.

An expressway connecting Guilin and Beihai, a coastal city in the southern part of Guangxi, has given Guilin access to seaports and extended its overseas influence.

While a northward expressway extending to Changsha, capital of Central China's Hunan Province, is currently under construction and planned to become operational next year, another expressway linking Guilin and Guangzhou, the capital of South China's Guangdong Province, is expected to start functioning at the end of this year.

Moreover, the Guilin-Guiyang expressway is to start construction within the next two months and be completed within the next three years.

Also under construction is an extensive railway network linking Guilin with other key cities in the country.

The Liangjiang International Airport in Guilin caters to more than 50 domestic and overseas airlines at present. When the currently ongoing expansion project is completed, it will be capable of accommodating the Airbus A380, the world's biggest aircraft.

Great appeal

Located in the overlapping area between the Pan-Beibu Bay and Pan-Peal River regions, Guilin lies at a vantage point in terms of developing close relations with Taiwan Province, the Hong Kong and Macao special administrative regions and the ASEAN (Association of Southeast Asian Nations) countries.

As China advances establishment of the China-ASEAN Free Trade Zone, Guangxi with its long history of exchange with Southeast Asian countries is seen as a bridgehead for deepening cooperation between the two sides.

As a political, economic, technological and cultural center in northern Guangxi, Guilin enjoys a distinct advantage in attracting ASEAN investment.

Meanwhile, with a widespread road and railway network, the city also has close ties with the huge hinterland of China's western regions.

In addition, high quality human resources also add to its appeal for investors. At present, Guilin has nine universities and colleges and 26 technical training schools, with a total of more than 100,000 students.

Twenty-eight other research institutes and a myriad of job training centers in the city also help nourish a competent labor force.

Local authorities value building a service-oriented government and improving administrative services.

They have established a free service center for investors and established one-stop licensing procedures to facilitate investment projects.

As one of the beneficiaries of the western development campaign launched by the central government in 2000 and an ethnic-group cluster area, Guilin offers its investors two-fold preferential treatments, including a number of tax incentives.

Guilin offers obvious advantages in land rent, labor and energy costs, in comparison with developed coastal regions.

Its positive environment has attracted more than 20 renowned companies from home and abroad. Six among the top 20 Chinese billionaires on the Hurun Rich List released in 2006 have made investments in Guilin.

These quality investment projects have played an important role in driving the growth of the local economy, with the city's gross domestic product (GDP) exceeding 61.9 billion yuan in 2006, an annual increase of 13.7 percent.

Industrial basis

Years of development have given rise to seven pillar sectors in the city - the machinery and equipment manufacturing, automobile and auto parts, electronic information, pharmaceuticals and ecological products, food and drinks, rubber items, and agricultural products deep processing industries.

At present, Guilin's electronic information and pharmaceutical sectors account for 50 percent and more than 75 percent of Guangxi's market share in these industries respectively.

To further spur investment and provide a platform for industrial development, the city government is stepping up efforts to advance the construction of several industrial parks.

Investors are encouraged to participate in building infrastructural facilities and factories in the parks.

Tourist paradise

Whenever Guilin is mentioned, it brings to mind the beauty of Lijiang River meandering through the city like a green satin ribbon.

Sailing along the river, travelers have an opportunity to enjoy beautiful mountainous scenery on either side, like a scroll being unfolded before their eyes.

The mountains' clear reflection in water rippling in a soft breeze adds to the enchantment of the scene.

If they leave their boat and climb into the mountains, tourists will be surprised at another wonderland presented in the mountain caves.

Guilin's landscape is noted for its karst landforms, formed by the underground erosion of rocks such as limestone and marble.

So far, Guilin has developed more than 200 scenic spots to become one of the best tourist destinations in China, recommended by the World Tourism Organization.

The local government has attached importance to preserving the ecological system of the area.

In 1998, the authorities started a mass comprehensive innovation project seeking to improve the surrounding rivers and lakes.

Domestic and overseas tourist arrivals to the city numbered 13.38 million in 2006.

(China Daily 11/15/2007 page13)