China incentivizes cross-border economic zone investors

Authorities have formulated 10 measures to shore up the development of cross-border economic cooperation zones in a bid to lift China's opening-up in border areas, a senior official said on Wednesday.

Wang Chao, vice minister of commerce, unveiled the package at a working conference in Kunming, in southwest China's Yunnan Province, on such zones.

The measures will provide loans with discounted interest for infrastructure construction in cross-border economic cooperation zones, a 15-percent tax discount for enterprises concerning prioritized industries in west China before the end of 2020, direct administrative power to examine and verify foreign investment in industries concerning transportation, international freight forwarding and wholesaling.

Priorities will also be given on land management, customs supervision, labor service cooperation, project contracting and personnel exchanges, said Wang.

The measures were jointly formulated by the Ministry of Commerce, Ministry of Finance (MOC), Ministry of Land and Resources, Ministry of Housing and Urban-Rural Development, the General Administration of Customs, and the State Administration of Taxation.

Since 1992, China has set up 15 cross-border economic cooperation zones in border regions of areas including Yunnan Province, Inner Mongolia Autonomous Region, Liaoning Province and Xinjiang Uygur Autonomous Region, covering a total land area of 92 square km.

Wang noted that such zones have greatly promoted the economic and social development of local areas.

In 2011, cross-border economic cooperation zones nationwide achieved a total foreign trade volume of 14.3 billion U.S. dollars, utilizing foreign investment of 560 million U.S. dollars, according to MOC data.

In a report on China's economic and social development plan issued in March this year, the Chinese central government vowed to further promote development of cross-border economic cooperation zones and support infrastructure connectivity with neighboring countries.