Chengdu has been strongly recommended by the World Bank to investors.
And statistics suggest the World Bank has a point: Investment here has grown despite slumps elsewhere in Asia.
In a recent report, the World Bank wrote that the investment environment in western Sichuan almost measures up to that of the Yangtze and Pearl river deltas.
It is one of China's hinterland regions that investors should tap first, said the report.
The World Bank recommends Sichuan because the province boasts abundant natural resources and an improved investment environment, said Vice-Governor Li Dachang.
Located in the upper reaches of the Yangtze River, Sichuan covers 485,000 square kilometres, which is 5.1 percent of China's total area. It is the country's third most populous province with nearly 85 million people.
Since China adopted economic reforms and opening-up policies in the late 1970s, Sichuan has witnessed unprecedented economic development. Its economic potential makes it the most powerful province in western China.
From 1995 to 1998, its gross domestic product (GDP) was higher than the national average.
Last year, its GDP was 358 billion yuan (US$43 billion), 4.5 percent of the national total and 10th in the country.
Sichuan's water resources that can be exploited rank first in China. And the province has 4,500 kinds of medicinal plants, 75 percent of China's total.
Covering 0.7 percent of China's territory, Sichuan's Panxi region boasts 13 percent of the country's iron ore, 91 percent of its titanium, 69 percent of its vanadium and 82 percent of its cobalt. The region's rare-earth deposits rank second in China.
Striving to create a better investment environment, Sichuan has invested heavily in infrastructure.
Highways, railways and air routes have taken shape. At the end of the year, Sichuan will have more than 800 kilometres of expressway, more than any other province. The province has also developed power and telecommunications networks linking the province's major cities.
In recent years, Sichuan's power capacity has increased annually by 1 million kilowatts, to reach 12.6 million kilowatts. The Ertan Hydropower Station, with an installed capacity that ranks second in Asia, started generating electricity last year.
Sichuan meanwhile has drawn up preferential policies, in line with the central government's policies, to encourage foreign investment in industry.
It offers "one-stop" service for foreign investors.
"In brief, foreign investors can go through all the formalities concerning the approval of their firms in Sichuan within 15 working days," the vice-governor said.
Sichuan has reduced the number of taxes levied on foreign firms from 900 to 90.
To safeguard foreign investors' rights, Sichuan has set up a complaint centre. Last year, the centre properly handled 69 cases.
Also to make life easier for foreign investors, Sichuan has set up international schools and clubs. An international hospital will soon open in Chengdu, Li noted.
The efforts have paid off. Last year, Sichuan attracted about US$1.6 billion in contractual foreign funds. Of that, US$1.1 billion was actually spent in the province, up 21 percent over the previous year.
In the first half of this year, contractual foreign funds rose 104 percent over the same period last year. Foreign cash invested went up 35 percent.
(China Daily)
