From the year of 2009, foreign investors will have right to open hospitals in Jilin, run gas stations in Hubei and develop Tibetan medicines in Tibet. In order to develop the middle and western regions, the central government’s new foreign investment directory listed clearly the expanded business opportunities.

The new directory, which can be downloaded on the Chinese version of the commission’s online directory, was made public on Dec. 26th, 2008, and will take place of the version unveiled in 2004. It will take effect on Jan 1.

Various preferential measures such as tax breaks, low-interest loans and cheap rent on industrial purpose land will be taken so as to attract foreign investment, local governments in the western and central areas. “The new directory is well fit into local conditions and their own development blueprints,” said an NDRC spokesman yesterday. “And we hope it can attract more foreign investment to middle and western parts.”

In the updated 28-page catalogue, every municipality, province and autonomous region has pointed out its own investment preferences and foreign investors are encouraged to invest in agriculture, environmental protection, infrastructure and industrial upgrades in the 21 provinces, autonomous regions and municipalities in western and middle China.

With tax breaks, they can also invest in occupational training, operation of holiday destinations and even passenger transportation by bus or by train. “Overseas investors can start businesses either on there own or via joint ventures with Chinese partners,” said NDRC spokesman.

China has launched the national development program to refresh the economy of the western and middle parts of the country following economic powerhouses formed in the eastern and coastal regions ever since the turn of the new century.

Earlier this week, Commerce Minister Chen Deming expressed his idea that compared with that of eastern China; the foreign direct investment (FDI) growth rate has sped up in the western and middle regions recently. However, FDI in China dropped by 36.52 percent year-on-year in November to $5.3 billion, down from $6.72 billion in October.

In the opinion of NDRC’s vice-minister Du Ying, the less-developed central and western parts are likely to suffer more than coastal regions confronting global crisis because of their fledgling industrial structures, sharply declining resource prices and a weaker capability to solve risk and social conflict.

He required the local governments in the regions not only should explore domestic investment and consumption potential but also unveil more preferential policies so as to attract foreign investment.

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