Shaanxi looks to the city to deepen trade ties
The economic powerhouse in the nation’s northwest, Shaanxi province, kicked off the 2011 Shaanxi-Hong Kong Investment and Trade Week in the city on Tuesday, aiming to deepen cooperation and promote investment opportunities between the two regions.
Targeting Hong Kong investors from various business sectors, the 2011 Shaanxi-Hong Kong trade fair has brought in more than 200 projects totaling $48.4 billion. These industries include agriculture, forestry, animal husbandry, energy and chemicals, equipment manufacturing, textiles, food, pharmaceuticals, high-tech, infrastructure, environmental protection, trade and logistics, as well as culture and tourism.
Riding on the State-level plan which aims to integrate neighboring Xi’an and Xianyang – an area in Shaanxi that used to be the capital of 13 ancient Chinese dynasties – with high-tech, environmentally-friendly and modern services, Jiang Zelin, the vice governor of Shaanxi province, said the Xi’an-Xianyang New District will also be designed as a habitable, modern, and garden-like place in the province.
The investment-driven economy, with total investment in the province recorded at 750 billion yuan in 2010, is expected to reach 1 trillion yuan this year.
However, it will need more funding from outside the region in the next five years, said the province’s vice governor, Jing Junhai.
“As the largest source of overseas capital, Hong Kong’s investment is playing a very important role in Shaanxi and further strengthening of cooperation between the two regions is also very essential,” Jing told a media briefing in Hong Kong on Tuesday.
The province, which is abundant in natural resources, has always been one of Hong Kong investors’ favorite destinations. According to figures provided by Shaanxi province, as of July 2011, Hong Kong investors have signed up for a total of 2,301 projects with the region with total investment reaching $10.84 billion.
The actual utilization of capital from Hong Kong stood at $6.24 billion, which accounts for 46.2 percent of the actual utilization of overseas capital in the province.
During January to July, 31 more projects between Hong Kong and Shaanxi have been sealed, which brought to the province investments of around $780 million.
Hong Kong investment mainly goes to sectors including manufacturing, real estate, hotels and the catering industry, according to the provincial government.
Jing added that the province will enhance closer cooperation with Hong Kong in its sectors with a competitive advantage in the future, including finance and capital, trade and logistics, as well as the cultural and creative industries.
Hong Kong has also been one of Shaanxi’s most important trading partners over the years. Between 2007 and 2010, total trade between the two regions amounted to $1.47 billion, among which Shaanxi’s exports to Hong Kong stood at $1.39 billion.
During the first seven months of this year, Shaanxi’s export to the city reached $250 million, compared with the total $280 million in trade between the two sides.
Shaanxi is also renowned for its abundant tourism resources. Income from this sector accounted for 9.6 percent of the total gross domestic product (GDP) last year. Contribution from tourism is expected to make up to one-fifth of the province’s GDP by 2020, according to the Shaanxi government.
litao@chinadailyhk.com
China Daily
(HK Edition 10/26/2011 page2)
http://www.chinadaily.com.cn/hkedition/2011-10/26/content_13976227.htm