Mar. 28 – Xinjiang, the massive autonomous region in northwestern China offering many lucrative investment opportunities, is relaxing the approval procedures for foreign investors. Under the new policy, local authorities will gain more decision power and investors will find it easier to start up projects in the region.
This year, Xinjiang’s regional Development and Reform Commission has been empowered to approve foreign-invested projects with larger capital. Foreign-invested projects that belong to the “encouraged” and “permitted” categories in the “Catalogue for Foreign-Invested Industry Guidance” can proceed with the approval procedures directly through the local authority as long as the total investment capital (including capital increase) does not exceed US$100 million. Projects that belong to the “restricted” category can also go to the local authority directly for approval as long as the total capital (including capital increase) is no more than US$30 million.
Xinjiang’s regional Development and Reform Commission said the new policy will save most foreign-invested projects the trouble of going to multiple levels of authority for approval and greatly simplifies approval procedures at the same time.
Functioning as an investment hub between Russia and Kazakhstan and featuring vast lands, abundant resources, and a low-cost labor force, Xinjiang is turning into an increasingly attractive destination for foreign investors. Last year, the region’s inflow of total foreign capital was US$237.4 million, a 10.1 percent increase from a year earlier. While food processing, mining, wholesale and retail, accommodation and services have long been the fields where foreign interest gathers, industries related to energy and logistics, such as power, storage, postal and transportation are emerging to attract more investment.
Dezan Shira & Associates is a boutique professional services firm with 10 offices and nearly 20 years experience in China. For advice concerning investment opportunities, corporate establishment, and tax/accounting matters in Xinjiang, please email the firm at email@example.com, visit the practice at www.dezshira.com or download the firm’s brochure here.
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