2008 is the first year that the strategic planning mapped out last March by the 17th Communist Party of China's National Congress is to be implemented and is also a crucial year in the implementation of country's 11th Five-Year Plan (2006-10).

Both provide Jilin, a province in northeast China, opportunities and challenges in attracting investment, both from home and abroad.

The preferential policies allowed by central government's policy of northeast rejuvenation will be gradually implemented this year, which will greatly improve Jilin's investment environment and make the province a more favorable place for migration and international and domestic industrial growth.

As well, the annual Northeast Asia Investment and Trade Expo is increasingly becoming a well-known investment promotion platform.

The external environment at present is also favorable to attract investment inflows into China. More importantly, the Jilin provincial government attaches great importance to foreign and domestic investment that is conducive to wooing conglomerates and strategic investors to make their fortunes in the province.

Jilin is aiming to utilize a total of $ 2.84 billion foreign investment and attract 106 billion yuan investment from other provinces this year, up 25 percent and 40 percent respectively over 2007.

Efforts

In order to achieve the goals, the province will introduce a series of preferential policies and strive to create a more investment-friendly environment for both investors from home and abroad.

The provincial government will set up an effective investment promotion mechanism in which the function of intermediary agencies will be encouraged and government will also play a major role.

The province is planning to make enterprises themselves more active in courting investment, especially key industries and firms.

It also plans to make good use of the intermediary parties such as business chambers, foreign diplomatic missions in China, social organizations and turn them into potential platforms to promote investment opportunities in Jilin.

In addition, the northeast province will take good care of foreign-funded companies so they will likely further increase investment or serve as functioning models to undecided potential investors.

Jilin will make efforts to support financing for local firms, including foreign-funded enterprises, by facilitating overseas stock listings.

The provincial government will also seek development aid, assistance or loans from foreign governments, international organizations or financial institutions.

Environment optimization

The province has placed improving the investment environment at the top of its work agenda this year, aiming to make Jilin an investment and businessman-friendly place. It will ensure that the preferential policies and pledged favorable treatment be honored to the letter. The northeast province will further improve coordination among various government departments to ensure they provide efficient and transparent work.

In addition, the provincial government will establish agencies to provide policy consulting, personal training and legal assistance services to investors and encourage the establishment of foreign chambers of commerce where foreign-funded firms are clustered.

The provincial investment promotion agencies will try to address legal concerns and complaints raised by foreign investors by holding regularly meetings soliciting their opinions.

But there are also unfavorable factors that may discourage foreign investors from coming to Jilin, such as the appreciation of the renminbi, rising costs of raw materials and more expensive labor due to implementation of the new labor contract law.

According to the new foreign investment guidance directory issued last year, foreign investment in real estate, resources exploration and corn processing will be under strict scrutiny, which will severely impact the attractiveness of Jilin, a resource-rich province.

Finally, Jilin is relatively distant from seaports, which increases transportation costs, while cold weather, especially the long winter, prolongs project construction.

(China Daily 05/16/2008 page14)