Fujian hopes to attract high-quality foreign investment that will help all kinds of companies in the province move into the international economy more quickly, Lin Changcong, head of the Fujian Provincial Department of Foreign Trade and Economic Cooperation, said in an interview.

"In this way, we will try to push Fujian to become a focal point for key resources including overseas funds, technology and talent," Lin said.

Opening-up is a lifeline to the economic development of Fujian, Lin added, and the use of foreign capital is the most important factor for the province in its opening-up strategy.

Foreign capital will help Fujian with the development of an advanced manufacturing industry, including faster transformation and upgrading and the optimization of its industry chain.

Fujian occupies the major part in the Economic Zone on the West Coast of the Taiwan Straits (WTSEZ). The State Council approved the development plan of the economic zone formally in March.

"We are also trying to build a 'low-lying land advantage' compared with the developed areas, in addition to the existing advantages of location and culture," Lin said.

The new advantages include a comprehensive gateway, which Fujian has built to serve as a new opening passage for its neighboring inland areas such as Jiangxi and Hunan provinces.

The other advantages involve policies, the investment climate and development potential.

During the 12th Five-Year Plan (2011-2015) period, Fujian will seek foreign capital to invest in 13 key industries, including those in which the province has traditional advantages and in the modern service sector, said Lin.

"At this year's China International Fair for Investment Trade, our province will put forward the directive catalog for key investment projects of the industry chain in Fujian," Lin said, and 220 key projects for foreign investors are included.

The province will step up efforts to attract well-known overseas enterprises to establish regional headquarters, logistics centers, operations centers and research and development centers in Fujian.

Lin stressed that the province will broaden the areas for the service sector to use foreign capital and expand the level of opening for the service sector to boost Fujian's competitiveness in the sector.

Foreign investors will be encouraged to put money into 10 emerging growth regions in Fujian: the Sandu'ao Rim, Min River Mouth, Pingtan Complex Experimental Area, Meizhou Bay, Quanzhou Bay, Xiamen Bay, the Gulei-Nantaiwu New Area, the Wuyi New Area, the Sanming Ecological Industry and Trade Area and the Longyan Industries Cluster Area.

The construction of the Pingtan Complex Experimental Area, in particular, has the province's full support. "I believe foreign firms will all have good development in these regions because there are good industrial foundations," Lin added.

Lin said that Fujian will aim to foster several development zones with an annual industrial output of more than 100 billion yuan ($15.6 billion), as well as a few highly competitive industry clusters with an annual output of 10 billion yuan.

Fujian is taking several approaches to attract foreign investors and capital.

Provincial officials lead overseas delegations each year for economic and trade promotion activities. Fujian plans to team up with InvestHK to seek investors overseas and organize trade fairs to attract foreign investors.

Other approaches include working with agents and industry associations in developed countries or zones, with overseas-based offices of ministries and with local firms.

Fujian is trying to build a top investment environment, as the province believes that a favorable investment climate is the first competitive advantage in its opening to overseas investors.

The province will nurture local industrial clusters to lift its abilities to match foreign investment projects. A talent support system will also be built. Fujian will also put in place a high-efficiency administrative service environment for businesses in accordance with international trade rules.

A modern logistics system will also be built more quickly, such as the "Land Harbor" project. International residential communities, schools and hospitals will be constructed.

(China Daily 09/07/2011 page14)