The Inner Mongolia autonomous region plans to continue the industrial transfer from China's eastern regions and support the development of local SMEs.

Some labor-intensive industries in the Yangtze River Delta and the Pearl River Delta regions began to be transferred to areas such as Inner Mongolia with lower labor costs and larger land resources.

Inner Mongolia also plans to develop 100 SMEs related to large-scale equipment manufacturing and hi-tech and some promising labor-intensive industries.

Non-taxable income

China's first research institute regarding non-taxable income has been set up in Hunan province. The institute will research the benefits of non-taxable income, the management methods, the collection methods and the compensation of using State-owned assets. The research results will be used as reference for the government to make related policies.

In 2007, the non-taxable income in Hunan province was about 61.3 billion yuan, equal to 66 percent of the province's tax income.

Sunny Kunming

With soaring oil prices, Kunming, capital of Yunnan province, has drawn up a plan to develop solar energy. The city's ambition is to become China's solar energy center with the output value of the industry reaching 6 billion yuan by 2013.

Kunming has more than 2,400 hours of sunlight annually. In 2007, 130 companies in Kunming were engaged in developing solar energy, with the total output value up to 650 million yuan.

New Zunyi business district

Construction will begin in Guizhou province's biggest business district in Zunyi city in October. It is intended as a tourist attraction for visitors. The comprehensive business district occupies 6.7 hectares and includes hotels, restaurants, cinemas, shopping malls, KTV venues and entertainment parks. So far, the project has attracted many well-known businesses from home and abroad, such as Parkson and Wal-Mart.

Xinjiang Uygur opportunities

Private companies in the Xinjiang Uygur autonomous region may have access to some industries previously dominated by State-owned companies, such as power, aviation and petroleum sectors.

The local government plans to support the development of private economy and open more channels for them. According to a draft bylaw to be reviewed by the Standing Committee of the Xinjiang Uygur autonomous region People's Congress, the private companies can invest in companies in these areas. The bylaw also have new rules on the financial supports to private enterprises.

Hubei construction group

The Hubei provincial government plans to invest 3 billion yuan to set up a construction investment group this year, for financing the infrastructure construction in Hubei's Wuhan urban zone.

Last December, the central government approved Wuhan and eight smaller cities in the province - Xianning, Xiantao, Qianjiang, Tianmen, Huangshi, Huanggang, Ezhou and Xiaogan - to establish a resource-saving and environmentally friendly experimental zone. It is hoped the new investment group will enable cities to share information and cooperate with each other more closely.

Fujian hydropower

Fujian province is ranked as one of leading provinces on small hydropower and its three cities, Sanming, Longyan and Ningde, are listed as the country's small hydropower bases, according to the National Development and Reform Commission.

By the end of 2007, there are 6,407 small hydropower stations in Fujian province, with a capacity of 6.12 million kw. The province plans to invest 8 billion yuan during the 11th Five-Year Planning Period (2006-10), for an additional capacity of 1.2 million kw of small hydropower in the rural areas.

(China Daily 06/02/2008 page10)