A recently released decision resulted in the cancellation of 42 items of managerial fees concerning running an enterprise in the area.

The new policy, which calls for an estimated reduction of 20 million yuan (US$2.4 million) in production costs the enterprises pay every year, is part of the campaign started earlier this year to improve the investment environment in the area.

The government has streamlined its administrative body and simplified the formalities for the approval needed to start business in the area.

Earlier this year, the Administrative Committee of the Dalian Development Area knocked down the toll gates of the highway leading to the area, which helped the enterprises there save 60 million yuan (US$7.2 million) a year.

"We try our best to reduce the cost for the enterprises to run businesses in the area," said Zhou Haifei, director of the committee.

"Besides the taxes levied by the government, we hope the firms in the area pay as little as possible to keep the enterprises running smoothly," Zhou said.

Established in 1984 as the first national development zone, the Dalian Development Area has attracted more than 700 foreign-invested enterprises with a real foreign investment of US$3.4 billion.

Zhou admitted that some investors had difficulties running their businesses in past years partly because of the regulations set by the local government.

Some business executives even complained about malpractice in some departments.

Zhou said the government will strengthen supervision of all the departments that oversee affairs related to foreign-invested enterprises.

Zhou said there are still problems beyond their reach and much to improve.

"But we will contact the departments concerned to keep bettering our environment," he said.

(China Daily 10/22/2001)