National Business Daily:

We have noticed that in recent years Guangxi has undertaken the construction of the largest integrated new chemical materials industrial project transferred from the eastern region. How is the project going? How can Guangxi leverage its advantages to build industrial parks along the border and near ports to attract and absorb transferred industries? Thank you.

Lan Tianli:

I'd like to invite Mr. Bai to answer your questions.

Bai Songtao:

Thank you for your attention to the development of industrial parks along the border and near ports. The Huayi Qinzhou New Chemical Materials Integrative Base project you mentioned is not only the largest industrial project transferred from the eastern region to Guangxi in recent years, but also the largest single investment project of Shanghai Huayi (Group) Company in the past 10 years. As of the end of this May, over 35 billion yuan had been invested in the first and second phases of the project, and over 2 billion yuan had been put into the third phase. This project is located in the Qinzhou area of Guangxi's border and ports industrial park. Currently, the industrial park consists of areas in the cities of Dongxing, Pingxiang, Qinzhou, and Beihai. We have been leveraging the advantages of our unique location as well as market and policy incentives to create a comprehensive platform for industrial competition and cooperation, thereby attracting and absorbing phased trans-regional relocation of industries.

First, we have strengthened synergy with major national development strategies. We have proactively enhanced link with the country's regional development strategies, such as the development of the Yangtze Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the coordinated development of the Beijing-Tianjin-Hebei region, the Chengdu-Chongqing Economic Circle and the Hainan Free Trade Port. We have signed cooperation agreements with relevant provinces and cities, and have held discussions with central SOEs at seminars hosted by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. We work hard to build consensus and promote all parties to cooperate with Guangxi in building the industrial park. Currently, we are accelerating the implementation of a batch of projects including the Jiangmen (Chongzuo) Industrial Zone. 15 central SOEs have signed 18 cooperation agreements with relevant cities in Guangxi, with a total investment of over 130 billion yuan.

Second, we have been building cross-border and cross-regional industrial and supply chains. We timely analyzed the cooperation potential and prospects with key regions in China and ASEAN countries in building relevant industrial and supply chains, rolled out support for the fostering of a group of industries which are complementary in resources for differentiated development and can serve as strong growth drivers, and strengthened open cooperation in industrial and supply chains. In addition to the petrochemical industry in Qinzhou city that was mentioned by Mr. Lan just now, electronic information, automobile and other industries in Guangxi also have close cooperation with ASEAN countries.

Third, we focus on releasing policy dividends. China has introduced fiscal, tax, land use, employment and financial policies to support the development of Guangxi's border and ports industrial park. For example, new investment enterprises that are in line with the industrial development direction can enjoy the preferential policy of "having their corporate income tax exempted for the first 5 years and halved for the following 5 years for the share to be taken by the region." These enterprises do not need to invest in foreign countries to build factories and recruit workers, but can still save their investment cost through these preferential treatments.

From January to April of this year, the total industrial output value of the border and ports industrial park increased by 14.5% year-on-year, and fixed-asset investment increased by 45%, showing a good momentum of development. We sincerely invite domestic and foreign enterprises to visit Guangxi for business opportunities, make investment here, and share opportunities from the development of the border and ports industrial park.

Thank you.