Liu Haiyang, vice-mayor of Beijing, announced this at Tuesday's mid-term meeting of the International Business Leaders Advisory Council for the Mayor of Beijing.

The municipal government has selected eight categories involving 36 projects to which preferential policies will be applied to attract overseas investors. The eight categories are as follows:

-- High-tech industrial projects;

-- The construction of transport, energy, sewage treatment and environment protection infrastructure;

-- The manufacture of industrial products in accordance with international market demand, involving a high degree of processing and with a high added-value;

-- Technological innovation for traditional industries;

-- The cultivation and processing of high-quality agricultural products;

-- The upgrading of traditional products and the expansion of exports of the said products;

-- Real estate development for industrial enterprises moving from inner city areas to the suburbs;

-- The remodeling of old houses and the construction of economic inner city housing.

"Given the vast amount of money needed for the current developments needed in Beijing, for example, the subway lines and sewage treatment plants, and the relatively low returns of such projects after their completion, investors will not make back their money very quickly. As such, investors will be granted operation franchise rights and enjoy preferential tax policies or tax exemptions," said Liang Junqing, deputy director of the Beijing Development Planning Committee.

According to the new regulations, foreign-funded high-tech enterprises are given priority in registration, examination and approval, applying for loans, and when their products pass through customs.

Liu said that, in addition to these things, foreign investors may obtain land-use rights by signing agreements, submitting a bid or by purchase.

He also pledged that the municipal government and governmental departments at all levels will spare no efforts in continuing to streamline and increase the efficiency of the approval procedures for foreign investments.

"All the projects should be in line with the city's general development blueprint drawn up by the municipal government in its 10th Five-Year Plan (2001-05),'' Liu added.

Around 50 representatives from the Beijing offices of multinational enterprises and world financial institutions attended the meeting.

(China Daily 11/16/2000)