Investment Environment

Economy

In 2003.the provincial gross domestic product reached RMB 283 billion yuan,up by 13.0%over theprevious year.The primary.secondary and tertiary industry increased by 2.7%,24.4%and 7.4%respectively compared with the previous year.Public ownership economy developed stably in reforming and opening up.The accomplishment of the large and medium!sized state owned enterprises¨reform and getting out of difficult situations is further consolidated.Mixed and private ownership economy developed rapidly.

The fiscal revelme went up rapidly.The fiscal revenue increased by 21.9%to RMB 28.58 billion yuan,among which RMB 16.82 biEion yuan is from local revenue,up by 19.7%over 2002.

Agriculture

Jiangxi is a big agriculture province.Its main agricultural output is among the top of China.In 2003,the agricultural gross output value reached RMB 84.163 billion yuan.Grain output totaled 14.503 million TnnS.

Industry

Various industry systems such as automobile,machinery building,electronics,chemical engineering,metallurgy,construction material,food,textile and medicine have been set up Some of the dominant industries and enterprises developed rapidly and became the leading force in the national economy.In 2003,the provincial gross industrial increment reached RMB 84.9 billion yuan,up by 1 8.4%over the previous year. In 2003.the gross industrial increment of independent accounting industrieal enterprises in the province was RMB 44.031 biHion yuan,and that of public sector economy was RMB 19.920 biEion yuan,and that of non!public sector economy was RMB 24.11 l billion yuan.Among the non!public sector economy,the gross industrial increment of the enterprises invested by the investors from foreign countries,HongKong,Macao and Taiwan was RMB 4.714 billion yuan.Heavy Industry,with an increase to RMB 29.531 billion yuan.developed faster than the light industry,which increased to RMB 14.499 billion yuan.

Fixed Assets Investment

The gross fixed assets investment reached RMB 1 38 billion yuan in 2003 with an increase of 49_3%.The fixed assets investment increased at a rapid pace.The structure of investment got improved.The construction of basic industry and infrastructure further speeded up.

The construction of key projects achieved remarkable success.2003 is tile year with the most key projects implemented,biggest investment,widest coveraIge in the history of our province.There are all together 69 key projects in the province,with the investment scale reached RMB 58.934 billion yuan.

Domestic Trade

The domestic consumer market was not only stable but also flexible.The consumption demand remarkably rose.In 2003.the total retail sales of consumer goods was RMB 92.32 billion yuan,11.7% higher than the previous year.Deducting price factor.the actual growth was 11.6%.The retail sales of consumer goods in city!level increased 12 1%with a total of RMB 45.53 billion yuan.

Open Economy

The assortments of exported commodities numbered 1 193,classified into 58 varieties.They were exported to 1 53 countries and regions.Since the registration of the first foreign!owned enterprise m Jiangxi in 1984,the number of foreign!invested enterprises has reached 6879 with total investment of US$5.801 billion by the end of 2003 In 2003.the gross volume of imports and exports was US$2.528 billion,49.2% up over previous year.Among this.US$1.505 billion from exports,US$1.022 billion from imports.

In 2003,US$1.612 billion of foreign investment was vi~uaEy utilized,which ranked first in the middle region.9th in the whole country.759 projects of utilizing foreign investment were newly approved wlth the contracted amount of foreign investment volume reaching US$2.33 1 billion.

The amount of contracts in foreign engineering projects.1abour co!operation and designing consultation was US$125.95 million,the actual business volume reached US$148.25 million.

Finance and Insurance

By the end of 2003.deposits in financial organs across the province totaled RMB 323.958 billion yuan,RMB 53.162 billion more than 2002,up by 16.4%.Among the deposits,personal savings in both rural and urban households rose to RMB 201.545 billion yuan,RMB 30.828 billion more than last year.up bv 15.3%.The credits held by the banks totaled RMB 254.528 biHion yuan,RMB 40.776 bileon more than the end of last year,up by 19.1%.

In 2003,insurance income,uD bv 47.4%,reached RMB 6.977 billion yuan.

Science,Technology and Education

In 2003,the team of science and technology continued to expand.Totally Jiangxi has 1 9 provincial level key 1aboratories,one 1aboratory constructed by province together with Ministry of Science and Technology,one national engineering research center,33 provincial engineering research centers.The scientific and technological staff in state!owned enterprises added up to 668,000.Among the 2434 patent applications,1238 were granted patents.More scientific and technological activities were carried out.Institutions engaged in technical trade numbered 52 1 and the volume of business with the 2721 contracts was RMB 830 million yuan.

Education has made stable progress.Citizen¨s quality has been greatly improved.There were 48 universities and colleges.1 6 adult institutions,11 9 adult vocational schools.In 2003,2,562 postgraduate students were enrolled,leading the total humber to 5,711.Institutions for higher education enrolled 141,600 new students with a total number being increased to 358,600.Among them 47,200 were graduates.Secondary!level education developed quicklv.There were 155,100 students in secondary vocational schools and 144.000 students in sentor secondary vocational schools.There were 2.2866 million students in junior high schools,1.2657 million children(99.01%of school!age children)in primary schools.Adult education has also made remarkable progress,with 231,100 students took the higher and secondary education self!study exam,respectively 5,786 and 10,176 students got 4 years diploma and 3 years diploma.

Pooulation and Environment

According to the statistics sample survey.the birth rate in 2003 was 14.07°,the death rate 5.98%o and the natural growth rate 8.09°.

Environmental protection was further enhanced.86 environmental monitoring stations were established.1 55 anti!pollution projects were completed within the limited time.There were 65 smoke/dust control zones in l 5 cities(including county!level cities),covering an area of 5 16.8 square kilometers.53 anti!noise pollution zones had been set up,covering 256.6 square kilometers.

The eco-environment protection was further put into an outstanding position.Jiangxi has approved 27 national ecological demonstration zones,built 22 national,provincial nattlre resetves.hflYastrueture

Infrastructure

Communication

There are a total of 3.450 kilometers railway lines and 329 railway stations within the province.The road construction has brouaht a brand!new look.Among the total length of 6 l,233 kilometers,39.44%are of the first and second classes.Almost all the county!level areas have asphalt roads and all the towns have roads.Jiangxi has a good inland waterway system.which totals more than 5,560 kilometers.There are 11 88 berths and 56 ports with a total annual designed handling capacity of over l 0,000 tons.In 2003,the turnover volume of commodities was 87.5 billion ton kilometers,increased by 9.1%.Among which railway transportation increased by l 1%,road transportation bv 2.5%and water transportation bV 14.6%.The volume of carried passengers was 53.7 billion passenger!kilometers,increased bv 2.3%.Among which railway transportation increased by 3.5%.The 4D!level Changbei International Airport in Nanchang forms Jiangxi¨s air transportation net with the airports in Ganzhou,Jingdezhen,Jiujiang,Mt.Jinggang and so on,hence accelerating Jiangxi`s opening!up to the outside world.

Post and Telecommunication

The undertakings of post and telecommunication kept developing rapidly.New communication portfolio increased remarkably.The total output value in post and telecommunication reached RMB 14.2 billion yuan.The capacity of program!controlled switchboards reached 5.483 million terminals.The internet users increased to more than 1.351 million.In every 100 residents.there are 27.6 telephones available.The service quality in post and telecommunication was improved remarkably.

Electric Power

Jiangxi is carrying out the principle of generating electricity with both thermal and hydraulic power.The major thermal power plants are the Guixi,Jiujiang,Jiujiang No.2,Fengcheng,Nanchan,Fenyi,Xinyu,Leping,Jingclezhen and Pingxiang electric power plants.The major hydroelectric power stations are the Wan`an,Zhalin,Jiangkou.Hongmen,Shangyoujiang and Luowan power stations.The electricity demand for the national economy development and people¨s living was guaranteed.

The province is planning to build a network of electric power projects along the Yangtze River and the Beijing!Kowloon Railway to support the country¨s development strategic along the Yangtze River and the opening of the Beijing!Kowloon Railway.The key projects include the construction of the 4*300,000 Kilowatt Fengcheng Electric Power Plant,the 2*300,000 Kilowatt third stage project of the Jiujiang Electric Power Plant,the 2*300,000 Kilowatt Mt.Jinggang Power Plant,HuanNinbu Electric Power Plant and the 180,000 Kilowatt Taihe Hydroelectric Power Station.

Nanchang State High-Tech Industry Development Zone

Nanchang State Hgh-Tech Industry Development Zone(hereinafter referred to as the zone)was founded in 1991 and approved by the State Council as state level high-tech industry development zone in October 1 992.The zone is only 3 kilometers from downtown with complete infrastructure.With the smooth terrain and fine geology,the zone is one of the best areas in Nanchang City in terms of the quality of atmosphere and comprehensive environment.

The perfect administrative organs and supporting service system provide foreign investors with good quality and efficient service in roads,water,drainage,electricity and communication which is called¨r Five clear,one even:.Now there are 96 foreign!invested enterprises from 1 6 countries and regions settled down here.

Nanchang Economic and Technological Development Zone

In April,2000,Nanchang Economic and Technological Development Zone was approved by the State Council as a national economic technical development Zone.It is also a foreign!oriented economic area that 1s constructed specifically in Nanchang City and Jiangxi Province.The development Zone is located in Changbei District of Nanchang,which is separated from the old downtown of Nanchang by only a river and connected with Bayl Bridge,Nanchang Bridge and Ganjiang Bridge.The junction for the national highways 105,320 and 316 is in the development zone.The expressways of Nanchang!Jiujiang and Nanchang!Zhangshu cross the development zone.Within this zone,there are stations for both passeners and cargoes for Beijing!kowloon railway.It takes just 15 minutes by car from Changbei International Airport to the zone.At present,one zone with two parks,which is one core zone with 1 8 square kilometers.Baishuihu Industrial Park with 1 0 square kilometers and Fanjia Foreign Investors Industrial Park with 1 0 square kilometers is being developed.The unique location advantage,the scientific planning,the complete infrastructure,the convenient communication net,the exceHent education foundation,the preferential investment policies and the accessory service facilities make the zone an ideal place in which foreign investors can prosper their business.Now there are 124 foreign!invested enterprises from 16 countries and regtons settled down here.