实施西部大开发战略，加快中西部地区发展，是我国现代化战略的重要组成部分，是党中央高瞻远瞩、总揽全局、面向新世纪作出的重大决策，具有十分重大的经济和政治意义。为体现国家对西部地区的重点支持，国务院制定了实施西部大开发的若干政策措施。现将有关问题通知如下：

　　一、制定政策的原则和支持的重点

　　（一）制定政策的原则。实施西部大开发是一项宏大的系统工程和艰巨的历史任务，既要有紧迫感，又要充分做好长期艰苦奋斗的思想准备。要坚持从实际出发，按客观规律办事，积极进取、量力而行，立足当前、着眼长远，统筹规划、科学论证，突出重点、分步实施，防止一哄而起，反对铺张浪费，不搞“大呼隆”。要加快转变观念，加大改革开放力度，贯彻科教兴国和可持续发展战略，把发挥市场机制作用同搞好宏观调控结合起来，把西部地区广大干部群众发扬自力更生精神同各方面支持结合起来。

　　（二）重点任务和战略目标。当前和今后一段时期，实施西部大开发的重点任务是：加快基础设施建设；加强生态环境保护和建设；巩固农业基础地位，调整工业结构，发展特色旅游业；发展科技教育和文化卫生事业。力争用５到１０年时间，使西部地区基础设施和生态环境建设取得突破性进展，西部开发有一个良好的开局。到２１世纪中叶，要将西部地区建成一个经济繁荣、社会进步、生活安定、民族团结、山川秀美的新西部。 　　（三）重点区域。西部开发的政策适用范围，包括重庆市、四川省、贵州省、云南省、西藏自治区、陕西省、甘肃省、宁夏回族自治区、青海省、新疆维吾尔自治区和内蒙古自治区、广西壮族自治区。实施西部大开发，要依托亚欧大陆桥、长江水道、西南出海通道等交通干线，发挥中心城市作用，以线串点，以点带面，逐步形成我国西部有特色的西陇海兰新线、长江上游、南（宁）贵（阳）昆（明）等跨行政区域的经济带，带动其他地区发展，有步骤、有重点地推进西部大开发。

　　二、增加资金投入的政策

　　（一）加大建设资金投入力度。提高中央财政性建设资金用于西部地区的比例。国家政策性银行贷款、国际金融组织和外国政府优惠贷款，在按贷款原则投放的条件下，尽可能多安排西部地区的项目。对国家新安排的西部地区重大基础设施建设项目，其投资主要由中央财政性建设资金、其他专项建设资金、银行贷款和利用外资解决，不留资金缺口。中央将采取多种方式，筹集西部开发的专项资金。中央有关部门在制定行业发展规划和政策、安排专项资金时，要充分体现对西部地区的支持。鼓励企业资金投入西部地区重大建设项目。

　　（二）优先安排建设项目。水利、交通、能源等基础设施，优势资源开发与利用，有特色的高新技术及军转民技术产业化项目，优先在西部地区布局。加强西部地区建设项目法人责任制、项目资本金制、工程招投标制、工程质量监督管理制、项目环境监督管理制等制度的建设和建设项目的前期工作。

　　（三）加大财政转移支付力度。随着中央财力的增加，逐步加大中央对西部地区一般性转移支付的规模。在农业、社会保障、教育、科技、卫生、计划生育、文化、环保等专项补助资金的分配方面，向西部地区倾斜。中央财政扶贫资金的安排，重点用于西部贫困地区。对国家批准实施的退耕还林还草、天然林保护、防沙治沙工程所需的粮食、种苗补助资金及现金补助，主要由中央财政支付。对因实施退耕还林还草、天然林保护等工程而受影响的地方财政收入，由中央财政适当给予补助。

　　（四）加大金融信贷支持。银行根据商业信贷的自主原则，加大对西部地区基础产业建设的信贷投入，重点支持铁路、主干线公路、电力、石油、天然气等大中型能源项目建设。加快国债配套贷款项目的评估审贷，根据建设进度保证贷款及早到位。对投资大、建设期长的基础设施项目，根据项目建设周期和还贷能力，适当延长贷款期限。国家开发银行新增贷款逐年提高用于西部地区的比重。扩大以基础设施项目收费权或收益权为质押发放贷款的范围。增加对西部地区农业、生态环境保护建设、优势产业、小城镇建设、企业技术改造、高新技术企业和中小企业发展的信贷支持。在西部地区积极发放助学贷款及学生公寓贷款。农村电网改造贷款和优势产业贷款中金额较大的重点项目，由农业银行总行专项安排和各商业银行总行直贷解决。有步骤地引入股份制银行到西部设立分支机构。

　　三、改善投资环境的政策

　　（一）大力改善投资的软环境。深化西部地区国有企业改革，加快建立现代企业制度，搞好国有经济的战略性调整和国有企业的资产重组。加大对西部地区国有企业减负脱困、改组改造的支持力度。加强西部地区商品和要素市场的培育和建设。积极引导西部地区个体、私营等非公有制经济加快发展，依照有关法律法规，凡对外商开放的投资领域，原则上允许国内各种所有制企业进入。加快建立中小企业信用担保体系和中小企业服务机构。除国家重大项目和有特殊规定的项目以外，凡是企业用自有资金或利用银行贷款投资于国家鼓励和允许类产业的项目，项目建议书和可行性研究报告合并一道按规定程序报批，初步设计、开工报告不再报政府审批，相应简化外商投资项目审批程序。要进一步转变政府职能，实行政企分开，减少审批事项，简化办事程序，强化服务意识，消除行政垄断、地区封锁和保护，加强依法行政，保护投资者合法权益。加强环境保护，防止盲目重复建设，依法关闭产品质量低劣、浪费资源、污染严重、不具备安全生产条件的厂矿企业。

　　（二）实行税收优惠政策。对设在西部地区国家鼓励类产业的内资企业和外商投资企业，在一定期限内，减按１５％的税率征收企业所得税。民族自治地方的企业经省级人民政府批准，可以定期减征或免征企业所得税。对在西部地区新办交通、电力、水利、邮政、广播电视等企业，企业所得税实行两年免征，三年减半征收。对为保护生态环境，退耕还生态林、草产出的农业特产品收入，在１０年内免征农业特产税。对西部地区公路国道、省道建设用地比照铁路、民航用地免征耕地占用税，其他公路建设用地是否免征耕地占用税，由省、自治区和直辖市人民政府决定。对西部地区内资鼓励类产业、外商投资鼓励类产业及优势产业的项目在投资总额内进口自用先进技术设备，除国家规定不予免税的商品外，免征关税和进口环节增值税。

　　（三）实行土地和矿产资源优惠政策。对西部地区荒山、荒地造林种草及坡耕地退耕还林还草，实行谁退耕、谁造林种草、谁经营、谁拥有土地使用权和林草所有权的政策。各种经济组织和个人可以依法申请使用国有荒山荒地，进行恢复林草植被等生态环境保护建设，在建设投资和绿化工作到位的条件下，可以出让方式取得国有土地使用权，减免出让金，实行土地使用权５０年不变，期满后可申请续期，可以继承和有偿转让。国家建设需要收回国有土地使用权的，依法给予补偿。对于享受国家粮食补贴的退耕地种植的生态林不能砍伐。对基本农田实行严格保护，实现耕地占补平衡。进一步完善建设用地审批制度，简化程序，及时提供并保障建设用地。现有城镇建设用地的有偿使用收益，主要用于城镇基础设施建设。加大对西部地区矿产资源调查评价、勘查、开发、保护与合理利用的政策支持力度。制定促进探矿权、采矿权依法出让和转让的政策办法，培育矿业权市场。

　　（四）运用价格和收费机制进行调节。深化价格改革，进一步提高市场调节价格的比重。合理制定“西气东输”、 “西电东送”价格，建立天然气、电力、石油、煤炭产销环节的价格形成机制。加快水价改革步伐，根据节水的要求，逐步将水价提高到合理水平，完善水资源费的征收和管理。加强流域水资源的统一管理，严格执行计划用水和水量分配制度，促进水资源的合理利用和开发。普遍实行城市污水和垃圾处理收费制度，收费专项用于污水和垃圾处理。加强江河上游和源头地区水资源的污染防治和保护工作。西部省际间及省、区内航空支线票价实行经营者自主定价。对西部地区新建铁路可实行特殊运价。加强西部地区邮政电信的普遍服务。

　　四、扩大对外对内开放的政策

　　（一）进一步扩大外商投资领域。鼓励外商投资于西部地区的农业、水利、生态、交通、能源、市政、环保、矿产、旅游等基础设施建设和资源开发，以及建立技术研究开发中心。扩大西部地区服务贸易领域对外开放，将外商对银行、商业零售企业、外贸企业投资的试点扩大到直辖市、省会和自治区首府城市，允许西部地区外资银行逐步经营人民币业务，允许外商在西部地区依照有关规定投资电信、保险、旅游业，兴办中外合资会计师事务所、律师事务所、工程设计公司、铁路和公路货运企业、市政公用企业和其他已承诺开放领域的企业。一些领域的对外开放，允许在西部地区先行试点。

　　（二）进一步拓宽利用外资渠道。在西部地区进行以ＢＯＴ方式利用外资的试点，开展以ＴＯＴ方式利用外资的试点。允许外商投资项目开展包括人民币在内的项目融资。支持符合条件的西部地区外商投资企业在境内外股票市场上市。支持西部地区属于国家鼓励和允许类产业的企业通过转让经营权、出让股权、兼并重组等方式吸引外商投资。积极探索以中外合资产业基金、风险投资基金方式引入外资。鼓励在华外商合资企业到西部地区再投资，其再投资项目外资比例超过２５％的，享受外商投资企业待遇。对外商投资西部地区基础设施和优势产业项目，适当放宽外商投资的股比限制，适当放宽国内银行提供固定资产投资人民币贷款的比例。允许西部地区的某些项目适当提高总投资中国外优惠贷款的比例。对西部地区优势产业及出口创汇项目引进国外先进技术和设备，国家在国外商业贷款指标安排上给予支持。积极争取多边、双边赠款优先安排西部地区项目。

　　（三）大力发展对外经济贸易。进一步扩大西部地区生产企业对外贸易经营自主权，鼓励发展优势产品出口、对外工程承包和劳务合作、到境外特别是周边国家投资办厂，放宽人员出入境限制。对西部地区经济发展急需的技术设备，在进口管理上给予适当照顾。对从西部地区重要旅游城市入境的海外旅游者，根据条件实行落地签证和其他便利入境签证政策。实行更加优惠的边境贸易政策，在出口退税、进出口商品经营范围、进出口商品配额、许可证管理、人员往来等方面，放宽限制，推动我国西部地区同毗邻国家地区相互开放市场，促进与周边国家区域经济技术合作健康发展。

　　（四）推进地区协作与对口支援。在防止重复建设和禁止转移落后技术与导致环境污染的前提下，在投资、财政、税收、信贷、经贸、工商、劳动、统计等方面积极采取有力措施，支持东部、中部地区企业到西部地区以投资设厂、参股入股、收购兼并、技术转让等多种方式进行合作。在中央和地方政府指导下，动员社会各方面力量加强东西对口支援，进一步加大对西部贫困地区、少数民族地区的支援力度，继续推进“兴边富民”行动。围绕西部开发的重点区域，发展多种形式的区域经济合作。

　　五、吸引人才和发展科技教育的政策

　　（一）吸引和用好人才。制定有利于西部地区吸引人才、留住人才、鼓励人才创业的政策。随着工资改革，建立艰苦边远地区津贴，提高西部地区机关和事业单位人员的工资水平，逐步使其达到或高于全国平均水平。依托西部开发的重点任务、重大建设项目及重要研究课题，提供良好的工作和生活条件，吸引国内外专门人才投身于西部开发。改革户籍管理制度，允许到西部地区投资经营和参加开发的其他地区居民保留原籍户口，凡在西部地区地级以下城市（含地级市）和小城镇有合法固定住所、稳定职业或生活来源的人员，可根据本人意愿办理城镇常住户口，鼓励农业富余劳动力合理转移和跨地区人口合理流动。扩大东部和西部地区之间的干部交流。中央有关部门、东部地区大专院校和科研机构，要加强对西部地区提供智力服务和人才支持。加强西部地区引进国外智力工作。依托中央有关部门和沿海经济较发达地区，加强对西部地区领导干部、少数民族干部的培养和公务员、专业技术人员、企业管理人员的培训。

　　（二）发挥科技主导作用。加大各类科技计划经费向西部地区的倾斜支持力度，逐步提高科技资金用于西部地区的数额。围绕西部开发的重点任务，加强科技能力建设，组织对关键共性技术的攻关，加快重大技术成果的推广应用和产业化步伐。支持军转民技术产业化的发展。支持西部地区科研机构、高校加强有特色的应用研究和基础研究。深化科技体制改革，加快从事应用研究的科研机构向企业转化，加强产学研联合，推动科技与经济的紧密结合。允许并提高西部地区企业在销售额中提取开发经费的比例。加大科技型中小企业创新基金对西部地区具备条件项目的支持力度。对科技人员在西部地区兴办科技型企业，简化工商登记，提高股权、期权和知识产权入股比例的上限。

　　（三）增加教育投入。继续实施贫困地区义务教育工程，加大国家对西部地区义务教育的支持力度，增加资金投入，努力加快实现九年义务教育。对西部地区高等学校建设予以支持，扩大东、中部地区高校在西部地区的招生规模。加大实施东部地区学校对口支援西部贫困地区学校工程以及西部地区大中城市学校对口支援农村贫困地区学校工程的力度。建设西部地区远程教育体系。加强对农村基层干部和农民的科学文化知识教育培训。

　　（四）加强文化卫生建设。国家安排的补助地方文化设施建设、广播电视建设投资和文物经费，向西部地区倾斜。进一步落实国家文化宣传单位经济政策，繁荣文艺创作。推进自然村“村村通”广播电视建设，进一步扩大广播电视有效覆盖面。促进边疆地区和少数民族地区文化事业发展。支持西部地区文化建设和精神文明建设。加强对西部地区卫生、计划生育建设的支持力度，重点建立健全农村初级卫生保健体系。

　　国务院西部开发办要会同有关部门，根据以上政策措施，在今年内抓紧研究制定有关政策细则或实施意见，经国务院批准后发布实施。西部地区各级政府，要按照国家规定，执行统一的西部大开发政策。

　　以上政策措施，主要适用于当前和今后１０年（２００１━２０１０年）。随着西部大开发战略的实施，将作进一步完善。所规定的各项政策措施及其细则，自２００１年１月１日起开始实施。

Circular of the State Council on Policies and Measures Pertaining to the Development of the Western Region

(October 26, 2000)

Carrying out the strategy of developing the Western Region and accelerating the development of the central and western regions are important components of China's modernization drive, representing a major decision on the part of the Central Committee of the CPC. This decision is based on a broad, long-term view of the situation and takes into consideration the overall interests of our country in the new century, and therefore is of great political and economic significance. The State Council has formulated a number of policies and measures for developing the Western Region that embody the government's focused support for the region. Following are some matters related to that decision.

I. Principles governing policy-making and focuses of support

1. Principles governing policy-making. The development of the Western Region is a large-scale, systemic campaign as well as a formidable historic mission. It requires a sense of urgency and we must be well prepared for the protracted difficult struggle. We must proceed from reality and follow the objective laws. We need to aim high while still staying within our means. We have to build on our existing resources but keep in mind long-term growth. We must make overall plans by taking all factors in consideration and conduct scientific evaluation. We must determine priorities, do things step by step, avoid blindness and rushing headlong into mass actions and fight extravagance. We must speed up the transformation of our mind, deepen reform and opening up and implement the strategy of reinvigorating our country through science and education and the sustainable development strategy. We should combine market forces with improved macroeconomic management, and combine nation-wide support for Western Region Development with the spirit of self-reliance among the people in the Western Region.

2. Priority tasks and strategic goals. The priority tasks for the present and near future include speeding up infrastructure development, strengthening environmental protection and ecological improvement, consolidating the fundamental position of agriculture in the national economy, restructuring industry, promoting tourism that takes advantage of local characteristics, and developing science, technology, education, culture and public health. Great efforts should be made in the next five to ten years to achieve breakthroughs in infrastructure development and ecological improvement in the Western Region and create a good start for Western Region Development. By the middle of the 21st century, the Western Region will be transformed into a prosperous and advanced new West, where life is stable, ethnic groups are united, and the natural landscape is beautiful.

3. Priority localities. The policies for Western Region Development are applicable to the municipality of Chongqing, Sichuan province, Guizhou province, Yunnan province, the Tibet Autonomous Region, Shaanxi province, Gansu province, the Ningxia Hui Autonomous Region, Qinghai province, the Xinjiang Uygur Autonomous Region, the Inner Mongolia Autonomous Region and the Guangxi Zhuang Autonomous Region. Large-scale development of the Western Region will rely on major transport routes such as the Asia-Europe continental bridge, the Yangtze River waterway and the routes to the sea in Southwestern China when bringing the region's major cities into play. These major transport routes will specifically serve the region by linking up major cities to gradually form a network of inter-provincial economic zones such as the area spreading along the Western Longhai Railway and Lanzhou-Xinjian Railway, the Nanning-Guiyang-Kunming area and the upper reaches of the Yangtze River. This formation of these economic zones will promote the development of other areas and allow the overall development of the region to proceed in an orderly and focused manner.

II. Policies for increasing investment

1. Increasing investment in development. The proportion of funding earmarked for Western Region Development in the central budget needs to be increased. When allocating loans from state policy-mandated banks and concessional loans from international financial organizations and foreign governments in accordance with lending conditions, vigorous efforts should be made to direct as much capital as possible toward projects in the Western Region. New major infrastructure projects set up by the state should mainly be funded by development funds out of the central budget and other special development funds, bank loans and foreign capital, and funding gaps should be prevented in the implementation of these projects. The central government will employ various methods to raise special development funds for the Western Region. Central government agencies concerned should fully manifest their support for Western Region Development when formulating sector development plans and policies and allocating special funds. Enterprises are encouraged to invest in major development projects in the Western Region.

2. Prioritizing development projects. Priority should be given to the Western Region when arranging infrastructure projects in the areas of water conservancy, transport, energy and etc., projects exploring and exploiting resources with a competitive edge, and projects industrializing high and new technologies with unique features and military technologies converted to civilian use. Efforts should be made to establish the corporate responsibility system for projects, project capital system, competitive bidding system, project quality monitoring system, and environment monitoring system, and to improve preparatory work for development projects.

3. Increasing transfer payments to local governments. As the financial strength of the central government improves, transfer payments from the central government to local authorities in the Western Region should be gradually increased. Priority should be given to the Western Region in the distribution of special subsidies for agriculture, social security, science and education, health care, family planning, culture and environmental protection. In addition, poverty-stricken areas in the Western Region should also be favored in the allocation of central budget funding for poverty alleviation. The central government is responsible for providing the majority of gain and seedling subsidies and cash subsidies pertaining to the implementation of state-approved projects that convert cultivated land to forestry and grassland, protect natural forests and prevent and eliminate desertification. The central government will provide proper compensation for losses of local financial revenue incurred by the implementation of projects that convert cultivated land to forestry and grassland and protect natural forests and etc.

4. Giving more financial and credit support to the Western Region. While retaining the right to choose projects on the basis of commercial viability, banks should increase the scale of credit that supports the development of basic industries in the Western Region, focusing on railway projects, highway trunk-line projects and large and medium-sized power, oil and natural gas projects. The process of determining which projects should receive loans coupled with matching funds from treasury bonds should be accelerated to ensure that loans are available when needed as projects progress. Infrastructure projects requiring large investment and long lead time can be given a reasonably longer grace period on the basis of the longer building time and debt-servicing capacity. In addition, the State Development Bank of China will increase lending to the Western Region an annual basis, and loans will be provided to more infrastructure projects that use rights of collecting fees or claiming project return as mortgage. Greater credit support will be given to agriculture, environmental protection and ecological improvement, industries with a competitive edge, small city and town development, technology upgrading, and development of hi-tech and new-tech businesses and small and medium sized enterprises in the Western Region. Vigorous efforts should be made to provide student loans and loans that support the construction of student dormitories. Loans to finance power grid upgrading in rural areas and key projects in competitive-edge sectors that demand a large amount of capital should be made directly from the headquarters of the Agricultural Bank of China and head offices of other commercial banks. Joint stock banks are encouraged to set up branches gradually in the Western Region.

III. Policies for improving the investment environment

1. Working hard to improve the "soft" environment for investment. The reform of SOEs in the Western Region should be deepened. The establishment of a modern enterprise system in these SOEs should be accelerated. Strategic restructuring of the state-owned sector and reorganization of the assets of SOEs should be carefully implemented. Greater support should be given to SOEs' technological upgrading and efforts to lighten the burdens of SOEs and bring them out of difficult situations. Greater efforts should be made to develop commodity and key material markets in the region. Concrete efforts should be made to accelerate the development of the self-employed, private and other non-state sectors in the region. In principle, all businesses, regardless their ownership category, should be given access to all investment fields which are open to foreign investors in line with relevant laws and regulations. The development of a credit guarantee system and service organizations for small and medium-sized enterprises should be speeded up. Except for major state projects and projects governed by special regulations, if enterprises, using either their own funds or bank loans, invest in such sectors as encouraged or permitted by the state, their project proposals and feasibility reports can be submitted simultaneously for approval in accordance with the prescribed procedure. In addition, the preliminary design and start of construction will no longer require government approval. Accordingly, the examination and approval process for projects with FDI should also be simplified. The process of changing functions of the government should be continued, and the government should be separated from enterprise management by reducing the number of matters requiring government examination and approval, simplifying procedures, strengthening the commitment to serving the public, eliminating administrative monopolies and breaking down regional barriers and regional protectionism. The government should strive to rule by law and protect the legitimate rights and interests of investors. Environmental protection needs to be enhanced and unnecessary duplication of similar projects should be curbed. Those factories, mines and enterprises should be closed that turn out low quality products, waste natural resources, pollute the environment or cannot meet safety requirements.

2. Implementing preferential tax policies. The corporate income tax of enterprises in government-encouraged sectors that are financed with either domestic or foreign investment in the Western Region should be collected at a reduced rate of 15% for a certain period of time. Upon approval by the provincial government, enterprises based in autonomous regions, prefectures or counties may also be granted reduction or exemption of corporate income tax for a certain period of time. New enterprises engaged in transport, power, water conservancy, postal service, broadcasting and etc. in the Western Region are eligible for a two-year tax holiday and a 50% reduction for the next three years following the tax holiday. No agriculture tax should be levied for ten years on income from special agricultural products produced by ecological forests and grassland converted from cultivated land for the purpose of ecological protection. By analogy with tax exemption in railway and commercial airport construction, no occupation tax will be collected for taking cultivated land to build state-level highways and province-level highways. Provincial governments in the Western Region should decide on any reduction or exemption of taxes for taking cultivated land to build other types of highways. If domestic or foreign investors invest in the Western Region in sectors where investment is encouraged by the government or sectors with a competitive edge and need to import advanced technology and equipment to facilitate their invested projects, these imports, except for those not exemptible by government regulations, should be exempted from tariffs and import value added tax, provided that the imports are purchased within the total amount of investment.

3. Implementing preferential policies for land and mineral resources. The government encourages afforesting activities and cultivating grass on barren mountain tops and infertile land and converting cultivated mountain slopes to forestry and grassland in the Western Region. The government allows those economic entities or individuals engaged in reafforestation and grass planting to own wood and grass in question and hold land use rights over such areas. Any economic entity or individual may apply to use state-owned barren mountains and land in accordance with laws, reafforestating these areas to protect the environment and improve the ecosystem. The only conditions are that sufficient amount of capital should be invested in the project and reafforestation should be successfully completed. As long as these conditions are met, any party may purchase the right to use state-owned land at a reduced rate. Such land use rights will remain in effect for 50 years and the concerned party can apply to have those rights renewed at the end of the 50 years. These rights can be inherited or transferred. In the event the state reclaims those land use rights for development purposes, the affected party will receive compensation in accordance with laws. No felling of trees is allowed in forested areas that have been converted from cultivated land under state grain subsidies. The overall amount of agricultural land should be carefully maintained and there should be a balance between the amount of agricultural land used for other purposes and the amount of reclaimed agricultural land. The system of examining and approving the use of land for development purposes should be improved by simplifying procedures so that land can be provided timely for development. The proceeds from the sale of land use rights for development in cities and towns should mainly be used for urban infrastructure development. Greater policy support will be provided for carrying out surveys and appraisals and for the prospecting, development, protection and rational utilization of mineral resources in the Western Region. Policy guidelines should be formulated to encourage the transfer or sale of prospecting or mining rights in accordance with laws in order to develop a market of mining rights.

4. Regulating through pricing and fee-charging policies. The price reform should be deepened to enhance the effect of market forces on prices. Prices involved in the West-East Gas Pipeline Project and West-East Power Transmission Project need to be reasonably set, creating a mechanism to regulate prices linking the production and marketing of natural gas, power, oil and coal. The pace of water tariff reform must be quickened to raise the price of water gradually to a reasonable level in line with the need of water conservation and to improve fee collection and management pertaining to water resources. Water resources in one river basin should be subject to overall management to ensure the strict implementation of planned water use and water rationing so that water resources can be rationally utilized. Specific fees should be charged in all cities for urban sewage treatment and garbage disposal and funds proceeding from this fee collection should not be used for any other purposes. Vigorous efforts should be made to prevent contamination and protect water resources on the upper reaches of rivers and river source areas. Airlines operating inter-provincial, provincial and regional feeders in the Western Region can set airfares independently. Special fares may be introduced on new railways built in the Western Region. Coverage for postal and telecommunication services in the Western Region should be expanded throughout the region.

IV. Policies for opening up towards domestic and foreign investors

1. Enlarging the range of investment open to foreign investors. Foreign investors are encouraged to invest in infrastructure development and resource development in the Western Region, including projects in agriculture, water conservancy, ecological improvement, transport, energy, municipal services and utilities, environmental protection, mining and tourism, and in the establishment of research and technology development centers. A greater proportion of the service and trade sector in the Western Region will be opened to foreign investment. The pilot operations of foreign investment in banks, retail stores, and foreign trade enterprises will be extended to municipalities directly under the central government and the capital cities of provinces and autonomous regions. Foreign banks in the Western Region will be allowed to engage in RMB yuan transactions gradually, and telecommunications, insurance and tourism will be opened to foreign direct investment in accordance with relevant laws and regulations. Foreign investors are allowed to set up such Chinese-foreign joint ventures as accounting and law firms, engineering design companies, railway and highway cargo transport companies, and enterprises engaged in municipal public utilities and in other sectors designated to be opened to foreign investment. Priority is given to the Western Region in carrying out pilot operations in some of the sectors designated to open up to foreign investment.

2. Opening more channels for foreign capital utilization. Pilot BOT operations as well as TOT operations will be carried out in the Western Region. Foreign-funded projects are allowed to raise funds through corporate financing, including financing in RMB yuan. The government supports the listing of qualified foreign-funded enterprises based in the Western Region on domestic and foreign stock markets. Regarding enterprises in the Western Region engaged in sectors where foreign investment is encouraged or permitted by the state, the government supports them to attract foreign investment through transfer of operating rights, transfer of stock, and merger and acquisition. Vigorous attempts should be made to attract foreign investment through Chinese-foreign joint industrial funds or venture capital funds. Chinese-foreign joint ventures are encouraged to re-invest in the Western Region, and if the proportion of foreign capital in the project of re-investment exceeds 25%, the project will be entitled to the same preferential treatment enjoyed by those with FDI. With regard to foreign investment in the Western Region in infrastructure and sectors with a competitive edge, the allowed proportion of equity held by foreign investors can be appropriately raised, and the proportion of financing provided by domestic banks in RMB yuan for foreign-funded fixed asset investment can be appropriately increased. The proportion of concessional foreign loans in the total investment may be appropriately raised for some projects in the region. Regarding projects engaged in sectors with a competitive edge and projects that earn foreign exchange through exportation, the government supports the importation of advanced technology and equipment by awarding quotas for foreign concessional loans. Projects in the Western Region are given priority in the use of multilateral and bilateral grants.

3. Expanding foreign trade and economic cooperation. Enterprises based in the Western Region are granted more decision-making power in foreign trade and economic cooperation. The enterprises are encouraged to produce competitive products for exportation, contract foreign projects, export labor, and invest in manufacturing overseas, especially in neighboring countries, and restrictions on the entry and exit of personnel should be relaxed. Appropriate consideration should be given to the import of technology and equipment urgently needed for the economic development of the Western Region. When foreign tourists enter the country at major tourist cities in the Western Region, they will be granted visa upon arrival where conditions permit, and other visa policies that facilitate entry will also be implemented. More favorable border trade policies should be implemented, easing restrictions on export tax refund, expanding the scope of imports and exports, reducing quotas for commodity import and export, and relaxing the control of licenses and entry and exit of people. Efforts should be made to open up markets in the Western Region towards neighboring regions and countries and vice versa, and thus to promote the healthy development of regional economic and technological cooperation with surrounding countries.

4. Promoting regional cooperation and counterpart aid. Strong measures related to investment, finance, taxation, credit, trade, industry and commerce administration, labor and statistics should be adopted to support enterprises based in the eastern and central regions to invest in the Western Region through setting up factories, joint stock, merger and acquisition and technology transfer, while avoiding overlapping development, transfer of obsolete technology and environmental pollution. Under the guidance of central and local governments, all resources in the general community should be mobilized to conduct counterpart aid between the Western Region and eastern region. More assistance should be delivered to poverty-stricken areas and areas inhabited by ethnic minorities in the Western Region, and the campaign named "Develop the frontier and help frontiersmen prosper" should be continued. Regional economic cooperation in various forms should be conducted, with the focus on key development areas in the Western Region.

V. Policies for attracting talents and developing science and education

1. Attracting talents and making good use of them. Specific policies should be formulated to attract and retain talents and encourage them to set up businesses in the Western Region. Along with the salary reform, hardship allowances should be provided to people working in harsh, remote or frontier areas. The salaries for personnel of government agencies and non-governmental institutions in the Western Region should be gradually raised to reach the national average level or even a higher level. In the implementation of key development tasks, major development projects and important studies in the Western Region, good working and living conditions should be provided to attract and retain talents from both home and aboard. The system of permanent residence registration will be revised to allow people to retain their original residence registration when they come to the Western Region to invest, trade or otherwise participate in Western Region Development. Any person who owns a permanent residence and has a stable job or other reliable sources of income in a city at or below the prefecture level in the Western Region may apply for a local urban residence permit if that person wishes. This policy is intended to stimulate an appropriate shift of the rural surplus labor force and a reasonable flow of population between regions. The exchange of government officials between the eastern and western regions should expanded. Relevant central government agencies as well as universities and research institutions in the eastern region should provide more information services and human resource support to the Western Region. Efforts should be made to bring in more foreign experts and technologies. With the assistance from the central government and coastal developed regions, more vigorous efforts should be made to nurture leaders and ethnic minority officials and train civil servants, professional and technical personnel, and business managers for the Western Region.

2. Taking advantage of the leading role of science and technology. More support will be given to the Western Region in the allocation of funds included in various science and technology plans, gradually increasing the overall amount of funding for science and technology. With the focus on the key tasks of Western Region Development, the scientific and technological capacity of the Western Region should be built and enhanced, and arrangements should be made to tackle key, general technical problems and to disseminate and industrialize major technological advances. The transfer of military technology to civilian use and production should be supported. Research institutions and institutions of higher learning in the region should be supported in their efforts to strengthen relevant applied research and basic research. The reform of the science and technology development system should be deepened, speeding up the transformation of applied research institutions into enterprises, consolidating cooperation between schools, enterprises and research institutes, and integrating scientific development and economic growth. A proportion of the sales income of enterprises in the Western Region may be used for technological development and the allowed amount may be raised as necessary. Innovation funds for small and medium-sized technology-oriented enterprises should intensify their support for qualified projects in the Western Region. The registration with local bureaus of industry and commerce should be simplified for scientists and technicians who wish to set up technology-oriented companies in the Western Region, and they are allowed to hold an increased proportion of shares, stock options or intellectual property equity.

3. Increasing investment in education. The compulsory education program should continue to be implemented throughout poverty-stricken areas in the Western Region, and the state will render more support for this program by increasing funding as part of a vigorous effort to make nine-year compulsory education available throughout the region. More support should be given to the development of institutions of higher learning in the Western Region, and universities and colleges based in the eastern and central regions should enroll more students from the Western Region. The counterpart aid program that matches eastern schools with schools based in poverty-stricken areas in the Western Region should be expanded along with the program that arranges for schools in large and medium-sized cities of the Western Region to assist schools in rural poverty-stricken areas. A system of distance education should be established in the Western Region. The training of rural grass-roots officials and farmers should be stepped up to improve their scientific and general knowledge.

4. Stepping up the development of culture and public health. The Western Region should be favored in receiving state subsidies for building local cultural facilities, broadcasting facilities and preserving cultural relics. Economic policies for state-run cultural and mass media entities should be further implemented to facilitate literary and artistic production. The "Connecting Every Village" project should be carried out to make radio and television broadcasting available to every village so as to further expand effective radio and television coverage in the Western Region. The culture of frontier areas and areas inhabited by ethnic minorities should be developed actively. Support should be provided for the development of culture and spiritual civilization in the Western Region. Stronger support should be given to the development of public health and family planning in the Western Region, with the focus on establishing and improving a primary health care system in rural areas.

Following the principal polices and measures as described above, the Office of the Leading Group for Western Region Development of the State Council will be working with relevant government agencies to formulate detailed regulations and recommendations on policy implementation before the end of this year. Once these regulations and recommendations are approved and published by the State Council, governments at all levels in the Western Region should carry out these consolidated policies for Western Region Development.

The above policies and measures are mainly applicable to the Western Region for the next ten years (2001-2010). These policies and measures will be revised as needed in the implementation of the Strategy for Western Region Development. The policy measures and detailed provisions described above take effect on January 1, 2001.