Learn Mandarin: Chinese Online Class - Opinions of The People's Government of Yunnan Province On the Improvement

of Investment Climate

BIZCHINA / Policies

Opinions of The People's Government of Yunnan Province On the
Improvement of Investment Climate
(yn.gov.cn)
Updated: 2006-05-17 11:17

To: People's Governments of All Ethnic Autonomous Prefectures and
Municipalities, Administrative Offices of All Prefectures, All
Commissions, Offices, Departments and Bureaus Directly under the
Provincial Government

We hereby issue opinions on the improvement of the investment climate in
Yunnan Province based on the proposal of Yunnan Provincial Committee of
the Chinese People's Political Consultative Conference (CPPCC) in order
to put the important thought of Three Represents into full practice, to
carry out the spirit of the Sixteenth National Congress of the Communist
Party of China (CPC) and the Third Plenary Session of the CPC's Sixteenth
Central Committee, and to further transform government functions, create
a favorable environment for investors from outside the province,
accelerate the introduction and expand the size of external investments
into the province as well as drive rapid economic growth through massive
introduction of inward investment towards the realization of the great
goal of building a well-off society in the province in tandem with all
other parts of China. Your careful study and earnest execution of the
opinions are hence expected.

I.Improve the awareness and sense of urgency and responsibility for
attracting more investments into the province.
(I) Remarkable achievements made in attracting external investment. Since
China's adoption of the reform and opening-up policy, all regions and
sectors across the province have been proactive in opening up to the
outside world and taken every possible measure to attract business and
investments into the province, and these efforts have led to hard-won
achievements in that field.
As of the end of 2002, approval had been granted to the establishment of
2277 foreign-funded enterprises in the province with US$1.49 billion
foreign capital put into actual utilization.
As to the attraction of investment from other parts of China, 13595
cooperation projects had been implemented, with an amount of RMB��31.26
billion originating from outside the province. The external investment
has played a positive role conducive to the reform and development of the
province in that it has not only driven the development of some
industrial sectors, but more importantly, has broken the enclosed and
outdated mindset, brought advanced technologies and management into the
province, and therefore generated major and far-reaching impacts on the
acceleration of the province's reform and development.

(II) Problems existing in the attraction of external investments & their
underlying causes. Compared with the national level and the situation in
the more advanced provinces and regions, Yunnan province is faced with
problems including low gross and small size of the external investment
utilized, low registration level of contractual capital and low survival
rate of foreign-invested enterprises. In 2002, the total amount of
foreign investment utilized in the province only accounted for 0.33% of
the nation's total and 2% of the province's total fixed asset investment,
the foreign-funded enterprises in the province showed a low survival
rate, and the province ranked the second from the last out of the six
provinces in southwest China in terms of the total external investment.
The key reasons underlying the limited external capital are outmoded
mindset, slow government function transformation, red tape in
administrative licensing, low efficiency and poor policy implementation,
and so on. Therefore, it has become a must to solve the existing problems
and further improve the investment climate.

(III) Significance of attracting external investment & opportunities
facing the province. Improvement of the investment climate is of critical
and profound significance to the province in terms of expanding the scale
of external investment, stimulating the growth of the non-public sector
economy, optimizating and upgrading industry structure and enhancing the
international competitiveness of the province's economy, and sustaining
its rapid growth. At present, the province is faced with major
opportunities for further opening up to the outside world. The new round
of international and interregional capital and industry transfer, China's
implementation of the western development strategy and accession to WTO,
the establishment of China-ASEAN (Association of Southeast Asian Nations)
Free Trade Area and the nation's participation in economic cooperation in
the Greater Mekong Sub-region have created rare opportunities for the
province in promoting its cooperation with the outside world and
attracting more external investments. We must firmly establish the
awareness of grasping every opportunity, strengthen the sense of urgency
and responsibility in our work, and take effective measures to create a
good climate for attracting external investments on a massive scale.

II. Deepen the administrative licensing system reform and improve
efficiency and service.
(IV) Sorting out and publicizing all external investment-related issues
requiring administrative licensing. All external investment-related
issues that require administrative licensing should be sorted out in
accordance with the requirements of the administrative licensing system
reform, and all those that do not conform to WTO rules and contradict to
market opening and fair competition should be abolished. Issues subject
to administrative licensing shall be amalgamated to the greatest extent,
made known to the public and implemented.

(V) Fully reforming the external investment licensing system. Among all
external investment projects, governments and other competent authorities
shall only exercise review and approval formalities over those major ones
that are related to economic security, possible impacts on environmental
resources and the overall economic layout, and those of government
investment nature or those falling under the category as restricted
projects or industries; while all other projects shall be subject to
registration only instead of the original review and approval procedure.
The authorities in charge shall no longer review and approve project
proposals, feasibility study reports, charters of contracts, and the
investors can directly apply to the duly-authorized administrations for
industry and commerce for registration of the projects, and go through
formalities with appropriate authorities for permissions regarding land
use, resources, environmental protection and safety, etc.
(VI) Continuously enhancing efficiency. The working style of
"coordination in an integrated fashion" and the provision of
"one-stop-shop" service should be further improved. The review and
approval of external investment-related issues shall, in principle, be
handled in the external investment service center. All competent
authorities shall respectively appoint personnel in charge to work in the
said service center, and all review and approval formalities are
concluded in a "one-stop-shop" fashion. A public affairs transparency
system shall be introduced, whereas the criteria, procedures, authority,
responsibilities and time limits regarding review and approval of
external investment projects shall be publicized in order to receive the
supervision of all investors.
A case-by-case review and approval system shall be implemented for major
projects. For each major project involving an investment amount of or
above RMB��50million, the "joint-conference review system" may be
exercised to define all issues subject to review and approval at only one
such conference, and with all the review and approval formalities
concluded within 15 working days.
In the event of disagreement during the joint review, the government
leaders at the same level shall be responsible for coordination and shall
sign and release the review comments for approval. A major investment
project may be approved first depending on the credibility of the
investor and the needs of industry steering, with other pertinent
formalities to be fulfilled later.
An agent system shall be implemented. Agencies may be set up under
government authorities in charge of external investment affairs to handle
formalities on behalf of investors for permits of the construction
projects they invest in the province, but the agencies shall not operate
for profit-making. The said authorities shall work out specific measures
and report the same to the government at the same level for approval for
defining time limits for the handling of relevant formalities by such
government organizations or agencies as environmental protection, land
control, planning, city construction, fire prevention, and power, water
and gas supply, etc.
The process for e-government should be expedited. An online network among
relevant government authorities should be built as quickly as possible to
bring greater convenience to external investors in the handling of
matters like online application, registration, inquiry, annual inspection
and complaints, etc.

(VII) Providing "full-process" services. The provision of follow-up
services to key investing enterprises should be strengthened; endeavors
should be made to offer good services before, during and after the
introduction of investment into the province, and coordination for
solving problems encountered by enterprises during their project
establishment, construction, production and operation should be
reinforced. For major investment projects, a service responsibility
system should be introduced where government leaders are personally
involved in facilitating such projects.

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