General Information of Sichuan . Sichuan, known as “ Land of Abundance ” , is located in Southwest China, on the upper reaches of Changjiang River, neighboring 7 provinces and municipalities. It is the 5th largest province in China covering an area of 485,000 km 2. A population of 87 million ranks Sichuan the 3 rd. most populated province in the country. There are 21 municipalities (prefectures) with 181 counties under Sichuan provincial administration. The second largest Tibetan -inhabited region and the largest Yi People-inhabited region and the only Qiang People-inhabited region are there in Sichuan . Sichuan stands as western China 's strongest economy. The total value of production, total cereals production, total industrial production value and total amount of social commodity retail account for 1/4 of total for all the 12 provinces and autonomous regions in west China . Industries like Information technology, mechanics, pharmaceuticals, chemical, food and tourism play an important role in China . Sichuan is the largest central place for commodity distributing and collecting in the west China . Its capital city Chengdu severs as center for trading, finance, science& technology and hinge for transportation and telecommunication.

Natural Resources : Sichuan boasts abundant natural resources. The exploitable hydropower are 110 million kW, ranking 1 st nationwide. Sichuan becomes one base for hydropower development in west China and the ‘West-to-East electricity transmission project'. 130 kinds of minerals have been discovered. Sichuan is also the largest natural gas production base in China . The prospective reserves of natural gas stand at 7.2 trillion m3. Biological resources are diversified with great varieties. Only natural medical herbs are as many as 4,500 kinds, which make Sichuan the national modern herbal medicine development base. There are 19.2 million hectares of forest with coverage rate 29%. Sichuan is one of China 's 3 major forest regions, 5 big pasturing regions, and the largest region for water resource conservation on the upper reaches of the Changjiang River . The wild giant pandas here account for 80% of the country's total.

Overall National Economy Indicators: The national economy in Sichuan grows fast. In year 2005, the total production value amount to 738.51billion Yuan, up by12.6% over the previous year. And local general revenue complete 83.04billion yuan, with 23.6% growth. Total grain output reach 34.09million tons. Average farmer's income per capita increase by 223yuan. The Fixed assets investment amount to 346.2 billion yuan, up 30.7% on year -on -year basis. The total retail sales of consumer goods reach 298.14billion yuan, up by 14% ranking 7 th nationwide, 1st in west China . The total value for import and export reach 7.9billion USD, up by 15.1%. In year 2005, the actual foreign investment amount to 907 million USD. The fund outside Sichuan , record 71.62 billion yuan, up by 49%. And the turnover for overseas engineering projects and labor service contracts grow to 600million USD, ranking 8 th nationwide 1 st in west China . Tourist revenue reaches 72.13billion yuan, up by 27.4% on year –on -year basis.

Infrastructure: Sichuan 's infrastructures are improving. An all way transportation network has shaped, combing high ways, railways, civil aviations and inland river transportation. The total mileage of highways reach 115000 km , including 17,959 km of express ways. The railway mileage amount to 3009 km . Three passageways to and from Sichuan come into being.. There are 10 airports, 150 domestic and international air routes. Facilities for post and telecommunication are father improved. The total length of optical cable is as long as 203000km . Long distance call reaches 909,000 lines and the capacity for local programmed-controlled switchboard reach 41.45million sets. The telephone coverage in Sichuan accounts for38%, with stationary phone 18.3%. The newly increased capacity for power installation is 2.72million kw in year 2005.

Advantageous Industries. Sichuan is the important industrial base of China , and the great industrial province in west, with complete industrial system categories. Industries have become the leading force and powerful engine driving Sichuan economical and social development forward. During period of the 10 th five year plan, the added value for industrial enterprises above designated size increased by 24.5 ％ , amounting to 210.25billion yuan, ranking 5 th in China, the net profit is 32.19billion yuan, up by 31.3% over the previous year. The contribution of industries to economical growth rose steadily, reaching 53% in previous year. The number of industrial enterprises increased 1133 comparing with that in year before to reach 395000 including 7614 of industrial enterprises above designated size , . Now Sichuan has entered into transition form initial stages to middle stage of industrialization, with trend of transformation from pill industries type to advantageous industries type, which is more adoptive to market competition.

1.Advantageous industries emerge gradually.

Sichuan boasts of advantageous resources of rich hydropower, natural gas, vanadium, titanium, rare earths etc. The completed large hydro power stations and those under construction are ErTan stations, and PuBuGou station, proposed projects are XiLuoDu, XiangJiaoBa and JingPin. Till the year 2020, the hydropower construction may reach51.7million kW in valleys of Jinshajing river, Yalongjiang river and Daduhe river. Sichuan is becoming the biggest hydropower industry base. There are all kinds of minerals in Sichuan , with concentrated locations. They will become a great number of advantageous resource products of high energy-consuming industry. Sichuan establishes development foundation for quality iron/steel, chloride /alkali chemicals, vanadium, titanium, rare earths, electrolytic aluminum. And comprehensive development and utilization for resources of vanadium, titanium, and rare earths are growing in economical scale. Some advantageous products like iron/steel products by PanGang Group, chloride chemical products by TianYuan Chemical Works , nitrogenous fertilizer by Luzhou Natural Gas Chemical Works , yellow phosphorus by Sichuan Investment Group Claim dimethylsulphide, Organic silicon fluorine etc are competitive at both domestic and international markets.

2.Agricultural processing industry is developing in economical scale.

Sichuan is a province of agriculture and major producing area for cereals, oils, cocoons, ramie citrus, tea and one of five pasturing area s. Total production of pork, beef and mouton rank first nationwide, and production for wheat, cotton, silk, tea, citrus, tung oil, dairy products play an important role in China . With years' development, some famous Sichuan enterprises like Wuliangye group, Jiannanchun Group, Luzhoulaojiao Co.Ltd, China Resource (Sichuan) Bluesword Brewery Co. Ltd, New Hope Group, Tongwei Group, Chengdu Cigarette Works and Yinbin Grace Group and agricultural processing leading enterprises like Gaojin group and Sihai group play a role of industry clustering and leading in fields of wine, beer, soft drinks, cigarette, feed, cereals/meat products. silk etc. The wine producing base in Qionglai county, China Woman shoes city in Wuhou district and furniture making in Chengdu , silk, textile and ramie enterprises in Nancong and Dazhou are established. The production of wine in Sichuan, its turnover, and tax/profit amount to 1/7,1/3, and 3/4 that of nation‘s total respectively.

3.Equipment manufacturing industry form advantageous products chain .

Sichuan intensifies efforts to integrate the equipment -manufacturing industry, and push it grow fast. Some heavy& large equipment manufacturers like Dongfang Electric Group, Erzhong Group, Ziyang Locomotive Works, KOBE STEEL, Chengdu Aircraft Corperation 、 Honghua, Zhisheng and Jiuzhou Electrical Machine etc expand greatly and form important product chains like large power generating equipment, large metallurgy/chemical equipment large environment protection equipment, large engineering machinery, locomotives, petroleum-gas equipment, aviation and air traffic control system and digital control technology /equipment, which are competitive in China's market. Dongfang Electric Group as the major contractor gained the 2 nd equipment supply contract of nuclear and conventional island in Guangdong LinAo nuclear power plant worth 4.1 billion yuan. This lay a foundation to build Sichuan as the nuclear equipment production localization base. The first 270000kw “F” grade heavy -duty gas turbine succeed for one time trial run and 46.5% of it made in China. Significant breakthrough was made for export of heavy duty devices to EU and US markets. Digital frequency conversion on oil rigs by Honghua was exported to the US , the contract for the export of hot rolling mill equipment packages to Poland by China Erzhong Group took effect, opening the way of entering EU and U.S. market for the heavy-duty complete sets of equipment.

4.Some highlights rise in Hi-tech Industry

Science/technology/education. Scientific and educational competence in Sichuan province is strong. So far there are 184 scientific research institutions of state level like China Academy of Engineering Physics, China Academy of Science Chengdu Branch and Xichang Satellite Launch Center . Sichuan possess of 15 key labs of national level, 9 state engineering technology centers,10 state level professional research institutes,3 technology center of world famous enterprises, 55 academicians of CAEP and CAS. In advantageous position in China are nuclear technology, aviation, information technology, bioengineering, agricultural technology, and stomatology .Sichuan has 72 universities and colleges with 1.05 million studends.5 universities are included into the country's “211 projects plan”. Panzhihua Steel Group, Changhong Group, Wuliangye Group, Dongfang Electric Corporation are key enterprises of large scale, with technology of high level and strong industry expansion. GoldTel and Maipu Comm. are high –tech enterprise of fast development type. Motorola, Ericsson and Lenovo have set up R & D centers in Sichuan .

Government Affairs Service . The Sichuan Provincial CPC Commission and Government attach great importance to build better investment environment. While improving transportation, telecommunication and energy supplying, we make steadfast efforts to improve on government functions and ways of working, constructing “government of legally managing, government of honor and government of service and optimize soft investment environment step by step. And we actively check, revise and enact relevant laws and regulations, open more fields for foreign investment and non-government investment. Government Service Centers of provincial and city level have established for “one stop service”. To protect investor's right; lawbreaking report center has been set up. “Be close to business” “Value business” and “Protect business” are widely accepted. In year 2004, Chengdu , the capital city was chosen as one of 10 cities with business activity in China , city with lowest business cost, investment worthy city recommended by China Taiwan Electronic Information Association and awarded the prize for building up Chinese city brand. In year 2005, together with Qingdao , Chengdu was awarded honor of “ China most flavor city”. Other cities in Sichuan also attract more and more investors with their unique charms and advantages. For future, we will strive to build up better and fair environment for opening up and business through administrating in accordance with laws, improving service, simplifying investment application and approval procedure, establishing market system order.

Tourism Resources . Sichuan is a province with tourist attractions. It boasts of beautiful landscapes and brilliant culture. There are scenic spots awarded of world natural and culture heritage like Jiuzhai Valley and Huanglong and Dujiangyan Irrigation System and Qincheng Mountain , Mt.Emei and Leshan-Giant Buddha and the stone forest in Xingwen county, the world geological park. Sichuan has a great many of scenic spots of state level, 20 tourist attractions, 15 scenic spots, nature protection areas, 5 national forest parks, 8 national geological parks, 62 important cultural relic protection units, 5 places for “Forty Best Tourist Attractions in China ”, 12 National Outstanding Tourist Cities , 7 Chinese History & Culture cities. Wuhou Temple , Dufu Thatched Cottage Museum and Sanxindui cultural relics are well known in China and abroad. Whelk Valley Glacier, Mt.Four-Girl, South Sichuan Bamboo Sea are of breath-taking beauty. The minority flavors in Aba , Ganzi and Lianshan prefectures are colorful with diversified culture reflecting each other. Tourism becomes an important industry in Sichuan .

Opening up to outside world. Sichuan committee of CPC and Provincial government attach great importance to opening up, put forward the strategy of “ Sichuan opening up to outside” on the basis “wide opening up promote great development”. The investment promotion and international trade expand continuously in higher level. The great achievement has been made for foreign economical cooperation and cultural exchange. These play an important role to speed up social and economical development. Sichuan has established cooperative relations on economic and trade with around 200 countries and regions. United States , Germany , Korea , Thailand , France and Singapore have established consulates in Chengdu . The regional economical cooperation is father strengthened. Taking pear rive delta, Changjiang river delta and Trans-Bohai sea area as key places, some economic and trade cooperation activities of Sichuan -Hongkong, Sichuan-Macao, Sichuan –Zhejiang, SichuanBeijing, Sichuan-Chongqing are successfully hold with regional cooperation platform. Sichuan actively participated in 9+2 Pan-Pear rive delta cooperation and strengthen cooperation with Southeast Asia,EU, Russia and central Asia., Broad Exchanges and visits in China and abroad are actively conducted, which greatly promote Sichuan's image and influence. Last year, Sichuan successfully sponsored the first session Cooperation and Development Week for Sichuan International Friendship Cities and France Day, which brought great infection. And Sichuan-Russia Week relating to China-Russia Year activity also won fruitful success. Tourism and conference erect a platform for Sichuan 's exchange with outside. The West China Expo, Flower Expo, Agriculture Expo, China Candy&Wine Fair 、 Sichuan International TV Festival and Tourism Development Conference etc , which are sponsored by Sichuan, have become important window and brand to promote Sichuan.. Guangzhou Fair, China Investment Fair and Hi-tech Fair which Sichuan participated also become an important platform for Sichuan promotion and with which, Sichuan build up better image, expand influence and gain greater recognition.

In year 2005, the total volume of import &export of Sichuan realize 7.95billion USD, up by 15.1%; overseas contracted engineering projects and labor service projects were conducted in as many as more than 90 countries and regions worldwide, and their turnover amount to 600 million USD with growth of 23.3%, which make Sichuan come out top. There are 17500persons for overseas labor service projects, up by 44.2% over the previous year. The overseas investment has substantive progress. 65 enterprises go abroad for investment and set up factories, bringing out export of local equipment, technology, raw materials and parts. Changhong Group, Dongfang Electronics and Panzhihua Iron & Steel Group actively exploit international market and become backbone for foreign trade and economical cooperation in Sichuan . Till the end of July, there are 7535 foreign-invested enterprises approved, with 6.969 billion USD of actual foreign investments, which make Sichuan rank first in west China . 116 of Fortune Global 500 open operations or branches in Sichuan, namely, Intel, Motorola, Ericsson, Toyota, Phoenixcontact 、 SMIC 、 Unisum 、 Lafarge etc. which strengthen pill industries and powerfully push upgrading for industry structure optimization and reform of state owned large and medium sized enterprises. The entrance of OCBC 、 HSB 、 GROUPAMA 、 New York Life Insurance 、 Carrefour 、 ItoYokado 、 Maersk 、 UPS 、 NIPPON-YUSEN promote development of Sichuan's modern tertiary industry and make both urban and rural markets prosperous. The utilized foreign fund and domestic fund have increased year by year and the investments gradually flow to industries of priority and in favor of industry optimization and products upgrading. Opening up goes deeply, foreign economic cooperation are carry out widely and foreign trade expand, all of which drive economical growth, pave the way for development and input endless energy and vigor to speed up Sichuan development. Now Sichuan is becoming an important undertaker of “Foreign Investment go west, Domestic Investment move west”.

During the period of the 11 th five year plan, Sichuan will strive to implement development strategy of “building a strong industrial province”, writing new chapter of industrial development with colorful pen. We warmly welcome enterprises at home and abroad to participate in developing and processing of our advantageous resources like hydro power, mineral resource and agricultural and by products and in cooperation on manufacturing heavy technical equipment. Investors are encouraged to invest in hi-tech industries like digital appliance, IC, network communication equipment, software and Chinese medical herbs, construction of infrastructure of highway, bridge etc, and develop tourist attractions and united tourism promotion. Advantageous enterprises are encouraged to take part in reforming state owned enterprise and transforming old industrial base in ways of investing, purchasing, M&A leasing, and trusteeship, and develop modern tertiary like chain operations, logistics and E –commerce in Sichuan.

Sichuan is a land full of hopes. We sincerely welcome enterprises in China and abroad to Sichuan for inspection, exchange and cooperation; welcome investors to come for business and development.