Xiangxi Tujia and Miao Autonomous Prefecture Overview — Opening Up (I)
Chapter 10: Opening Up. After the Third Plenary Session of the 11th CPC Central Committee, Xiangxi earnestly implemented the basic state policy of opening up and treated it as a strategic measure to accelerate socialist modernization. Much work was done in attracting investment, external exchange and economic cooperation, with great results. Section 1: Investment Promotion. 198...
This article has been compiled from historical materials in the "Zhangjiajie Tour Guide Network" (33519.com · City Overview section). Some administrative divisions, population, socioeconomic data, and policy information may be outdated and are for reference only; for the latest situation, please refer to official releases by the local government and scenic areas.
Chapter Ten Opening to the Outside World
After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, Xiangxi Autonomous Prefecture earnestly implemented the basic national policy of opening to the outside world and treated opening to the outside world as a strategic measure to accelerate socialist modernization. In attracting investment, foreign exchanges, and economic cooperation, much work was done and great achievements were made.
Section One Attracting Investment
In mid-to-late October 1984, Hunan Province's First Foreign Economic and Technical Cooperation Negotiation Conference was held in Changsha. Wang Dezhen, vice governor of the People's Government of Xiangxi Autonomous Prefecture, led a delegation composed of heads of the prefecture planning commission, economic commission, foreign economic relations commission, finance, and banking departments to participate in the negotiations. Over more than half a month, they had extensive contacts with overseas merchants and concluded 7 compensation trade cooperation projects, including a fast food production line, electronic testing instruments, micro printers, and cigarette making, tipping, and packing equipment, secured 2.32 million US dollars in foreign exchange quotas and 21.6 million yuan in matching funds, marking the beginning of investment attraction.
In 1985, the Xiangxi Autonomous Prefecture Foreign Economic and Trade Commission was established to strengthen foreign economic and trade work. By 1993, 20 foreign-invested enterprises had been approved, with contracted foreign investment of 16.29 million US dollars. In 1996, the Investment Promotion Bureau was established to intensify investment attraction. By the end of 2000, the 8 counties and cities within the prefecture had approved the establishment of 73 Chinese-foreign equity joint ventures, Chinese-foreign cooperative joint ventures, and wholly foreign-owned enterprises, with contracted foreign investment of 50 million US dollars and actual utilized foreign investment of 24.85 million US dollars.
Since 1996, Xiangxi Autonomous Prefecture has implemented the "opening-driven" strategy. Leadership groups were established at both the prefecture and county/city levels, a project tracking responsibility system was implemented, and it was included in the government's target management assessment work. Leaders at both the prefecture and county/city levels personally participated in project negotiations and coordinated to solve problems arising during project implementation. Departments at all levels cooperated with one another, worked in coordination, and jointly participated in various investment promotion activities, earnestly improved the investment environment, and strengthened the later-stage management of "three types of foreign-invested enterprises." Since 1996, the "Preferential Policies of Xiangxi Autonomous Prefecture for Utilizing Foreign Investment" have been revised and improved three times, and the "Opinions on Accelerating the Development of the Private Economy" were formulated and issued, creating a relatively flexible and relaxed policy environment for attracting foreign investment. A complaint coordination center for foreign-invested enterprises was established, and symposiums for representatives of foreign-funded enterprises were held regularly; a burden card system was implemented, with principal leaders personally appearing to provide designation-based protection for foreign-funded enterprises, and regular inspections were conducted on fees charged to foreign-funded enterprises. A service commitment system was implemented. Law enforcement departments such as industry and commerce, taxation, public security, procuratorates, courts, and environmental protection, as well as functional departments such as pricing, urban construction, land, and labor, publicly promised to provide various conveniences to foreign-funded enterprises. The improvement of the environment created a good external environment for utilizing foreign investment and attracting foreign businessmen. During the "Ninth Five-Year Plan" period, Chinese-foreign equity joint ventures and wholly foreign-owned enterprises such as Xiangxi Minhui Industrial Co., Ltd., Yongshun Senyuan Industrial Co., Ltd., Xiangxi Huaxin Development Co., Ltd., Jishou Jinmiao Industrial Co., Ltd., Fenghuang Shenlong Agricultural and Sideline Products Co., Ltd., and Xiangxi Special Breeding Co., Ltd. were successively completed and opened.
In 2001, Xiangxi Autonomous Prefecture's investment attraction work made new progress. That year, 7 "three types of foreign-invested enterprises" were approved, involving industries including industry, agriculture, the tertiary industry, real estate development, and tourism development. There were 27 registered three types of foreign-invested enterprises and 14 operating three types of foreign-invested enterprises. Among the 14 operating three types of foreign-invested enterprises, there were 8 Chinese-foreign equity joint ventures and 6 wholly foreign-owned enterprises. In 2001, the total assets of the "three types of foreign-invested enterprises" were 325.51 million yuan, sales revenue was 123.19 million yuan, and there were 1,348 employees.
In 2002, Xiangxi Autonomous Prefecture implemented "three emphases" in attracting investment: First, emphasizing project-based investment promotion. That year, 84 investment projects were collected, 50 projects were organized, packaged, and released, over 300 clients were contacted, and 53 key clients were established. The "Xiangxi Investment Guide" and project materials were compiled and printed, and the investment project database, client database, and foreign-invested enterprise database were improved and enriched. At the same time, efforts to track and coordinate investment contracts were intensified, with 63 projects tracked and coordinated, 27 foreign investment contracts signed, and 45 agreements reached. Second, emphasizing event-based investment promotion. The prefecture organized participation in foreign economic and trade activities such as the "Beijing International High-Tech Week," the "Seoul Trade Promotion Fair," and the "Hong Kong Trade Fair," and for the first time independently held the "Hunan Special Conference on Implementing the Western Development Strategy" abroad, with over 50 business representatives and more than 20 journalists attending. This grandly promoted Xiangxi Autonomous Prefecture, built momentum for its development, and achieved considerable success. Third, emphasizing environment-based investment promotion. The "Several Preferential Policies of the People's Government of Xiangxi Tujia and Miao Autonomous Prefecture on the Western Development" was formulated, and the Prefecture Planning Commission's "Preferential Measures for Administrative and Institutional Charges on Key Projects of Western Development and Investment Promotion" was forwarded, improving the system of preferential and incentive policies for utilizing foreign investment. At the same time, supervision was strengthened to ensure the implementation of various policies and commitments, and various issues in the production and operation of foreign-invested enterprises were coordinated and resolved. That year, 7 foreign-invested enterprises were approved and established, with contracted foreign investment of 10.54 million USD and actually utilized foreign investment of 8.14 million USD, increasing by 132% and 14% respectively over the previous year. Among them, Xiangxi Jinquan Packaging and Printing Co., Ltd. had a registered capital of 7.89 million USD and actually utilized foreign investment of 6.72 million USD, making it the foreign-invested enterprise with the largest investment and highest utilization rate that year.
In 2003, the Xiangxi Autonomous Prefecture Investment Promotion Bureau, in light of local conditions, collected, organized, and released 62 projects, contacted over 200 clients, and conducted in-depth negotiations on nearly 30 projects. It organized and participated in foreign economic and trade activities such as the "Shanghai Economic and Trade Activity Week" held by the Hunan Provincial Government in Shanghai, the trade fair held in Russia, and the Fourth High-Tech Achievements Fair held by the Ministry of Foreign Trade and Economic Cooperation and the Ministry of Science and Technology in Shenzhen, signing 10 contracts and attracting 120 million USD in foreign investment. A project tracking responsibility system was implemented, with 20 contracted projects tracked cumulatively, facilitating the implementation of 8 projects and in-depth negotiations on 4 key projects. Five new foreign-invested enterprises were approved, achieving contracted foreign investment of 17.24 million USD and actually utilized foreign investment of 10.09 million USD, increasing by 65% and 24% respectively over the previous year. Relationships between foreign-invested enterprises and relevant departments were coordinated, promoting capital increase and share expansion, and realizing 3 projects attracting foreign investment through existing foreign enterprises, utilizing 5.145 million USD in foreign investment. Services and management for foreign-invested enterprises were strengthened, helping them overcome difficulties. Seventeen operating foreign-invested enterprises ran normally and achieved some development. Xiangxi Jixin Industrial Co., Ltd., a wholly foreign-owned enterprise, had contracted foreign investment of 3.3 million USD and actually utilized foreign investment of 3.297 million USD. Xiangxi Lugu Industrial Co., Ltd. increased capital by 3.5 million USD, Hunan Jingang Alloy Products Co., Ltd. increased capital by 615,000 USD, and Xiangxi Autonomous Prefecture Chengmei Building Materials Co., Ltd. increased capital by 420,000 USD, fully demonstrating the improvement of the investment environment and the enhancement of investment returns, which boosted foreign investors' confidence.
In 2004, Xiangxi Autonomous Prefecture made new breakthroughs in investment promotion. The successful establishment of the Xiangxi Autonomous Prefecture Bureau of Commerce marked the basic completion of institutional reform in the circulation sector and the initial formation of a grand commerce framework featuring the integration of domestic and foreign trade. The Xiangxi Autonomous Prefecture Bureau of Commerce is a constituent department of the Xiangxi Autonomous Prefecture People's Government, responsible for investment promotion, domestic and foreign trade, and international economic cooperation throughout the prefecture. It has internal divisions including the Foreign Investment Liaison Section, Foreign Investment Management Section, Foreign Trade Section, and Foreign Economic Cooperation Section, fully demonstrating that the degree of opening-up has far exceeded the past. That year, party committees and governments at all levels in Xiangxi Autonomous Prefecture attached great importance to investment promotion, treating it as the primary measure to drive industrial development. Government affairs service centers were established, approval procedures were simplified, and a strong atmosphere of unified effort across the prefecture for investment promotion was formed. Departments at all levels, especially comprehensive economic departments, industrial departments, and foreign-related departments, worked hard to transform their functions and create a favorable development environment for investment promotion and commerce. Commerce agencies throughout the prefecture further strengthened cooperation with relevant departments such as the Development and Reform Commission, Economic Commission, Agriculture Office, and Tourism Bureau, developing and packaging a batch of projects that conformed to industrial orientation, reflected resource advantages, and offered high investment returns, further solidifying the foundation for investment promotion. Tax, finance, commerce, and other departments adapted to the new export tax rebate mechanism and took effective measures, cumulatively rebating 109 million yuan to export enterprises throughout the year, effectively resolving the problem of overdue tax rebates and ensuring the smooth implementation of the new export tax rebate mechanism. The Foreign Affairs Office, Federation of Returned Overseas Chinese, Federation of Industry and Commerce, Taiwan Affairs Office, Foreign Publicity Office, and various overseas offices of the prefecture government expanded channels for external contacts and actively bridged international economic and trade cooperation. Collaboration in quarantine and inspection, foreign exchange, industry and commerce, taxation, quality inspection, tax-trade, bank-trade, and exchange-trade was further strengthened. Relevant law enforcement departments intensified efforts to regulate and rectify the economic development environment, further improving the investment climate. A grand commerce framework featuring multi-department participation and multi-business integration took initial shape. That year, the scale of investment attraction reached a new high. Through active participation in major economic and trade events such as the "Pearl River Delta Economic and Trade Fair," "Hunan Economic and Trade Fair," "Hangzhou Economic and Trade Fair," and "Yinchuan Economic and Trade Fair," contracted overseas investment reached 43.08 million USD, with actually utilized overseas investment of 18.32 million USD. The source of foreign investment shifted from the previous dominance of Hong Kong, Macao, and Taiwan capital to a new pattern featuring North America as the main source. The quality of foreign investment utilization also improved, with energy, pharmaceuticals, and other industries becoming investment hotspots, basically changing the previous situation where real estate accounted for a large proportion of investment attraction, and the direction of capital investment gradually became more rational. With the advancement of industrialization in Xiangxi Autonomous Prefecture, industrial investment promotion became the key point and breakthrough for accelerating industrial development and adjusting the industrial structure. That year, the Prefecture Economic Commission strengthened investment promotion work and innovated investment measures, achieving good results in industrial project investment promotion throughout the prefecture.
In 2005, Xiangxi Autonomous Prefecture took even greater actions and achieved even greater breakthroughs in investment promotion. The Prefecture People's Government successively organized participation in five major investment events: the "Hangzhou Economic and Trade Fair," "Hong Kong Economic and Trade Fair," "World Top 500 Summit Forum," the Second "Pan-Pearl River Delta Economic and Trade Cooperation Forum," and the "Sino-American Economic Cooperation (Hunan) Fair." At the "Hangzhou Economic and Trade Fair," it organized the "Xiangxi Autonomous Prefecture (Hangzhou) Investment Project Briefing and Signing Ceremony" and four thematic symposiums on industry, agriculture, infrastructure, and tourism development, establishing contacts with over 70 well-known domestic and international business representatives and cumulatively signing 16 cooperation project intention agreements with contracted investment of 1.62 billion yuan. At the "Hong Kong Economic and Trade Week," the Hong Kong Commercial Daily published a full-color special edition titled "Beautiful Xiangxi Welcomes You" and released and promoted 80 key investment projects of Xiangxi Autonomous Prefecture. Over 160 business representatives were invited, including representatives from 10 investment companies, 3 listed companies, and 9 well-known Hong Kong chambers of commerce and intermediary organizations. Well-known Hong Kong media journalists conducted exclusive interviews with the Xiangxi Autonomous Prefecture delegation. At the event, 34 projects were signed, with a total value of 3.82 billion yuan and contracted investment of 3.24 billion yuan. This was the largest, highest-level, and most effective investment promotion event that Xiangxi Autonomous Prefecture had participated in and organized since the reform and opening-up.
In 2005, Xiangxi Autonomous Prefecture attracted a total of 1.72 billion yuan in out-of-prefecture funds, an increase of 43% over the previous year. Of this, domestic out-of-prefecture investment was 1.58 billion yuan, a year-on-year increase of 19.6%, ranking fourth in Hunan Province and the highest annual growth rate during the "Tenth Five-Year Plan" period. Fourteen new foreign-invested enterprises were approved, 210 projects were introduced, and registered capital of 17.29 million yuan was attracted. The structure of investment destination improved. By industry, there were 73 industrial projects attracting 490 million yuan; 30 agricultural projects attracting 490 million yuan; 33 circulation projects attracting 360 million yuan; 21 tourism projects attracting 160 million yuan; and 26 real estate projects attracting 190 million yuan. Overall, investment attracted by industrial projects increased significantly, accounting for 68% of the total investment that year; the proportion of real estate project investment dropped from 47% in 2003 to 10% in 2005. Investment promotion methods were innovated. Throughout the year, through hiring economic advisors and investment agents, 10 major industrial projects were introduced with contracted investment of over 600 million yuan, and entrusted agency investment promotion achieved initial results. Park-based investment promotion made significant breakthroughs. The prefecture's 11 key industrial parks completed planning for 50 square kilometers, introduced 48 various industrial investment projects, and attracted 1.5 billion yuan in key project construction funds. Among them, industrial parks such as Zhonglingshan in Baojing County hosted 79 enterprises, achieving industrial added value of 324.24 million yuan and paying taxes of 91.53 million yuan, making a major contribution to the county's fiscal revenue exceeding the 100 million yuan mark. The contract fulfillment rate of signed projects improved significantly. The 72 signed projects from the "Hunan Economic and Trade Fair" and "Hong Kong Economic and Trade Week" achieved an 80% fulfillment rate, with over 500 million yuan in funds received and a 76% start-up rate. The contribution rate of investment promotion grew increasingly larger. In 2005, the prefecture attracted 1.72 billion yuan in funds, accounting for 25% of the prefecture's total social fixed asset investment, compensating to a certain extent for the shortage of funds for economic construction and social development.