The topography of Ningxia slants toward the north with an
elevation from 1,100 to 2,000 meters. The highest point is 3,556 meters above sea level.
Ningxia boasts 0.71 million hectares of wasteland suitable for farming, one of China¡¯s eight provinces and autonomous regions each with more than 0.63 million hectares of wasteland suitable for agriculture. There are 3 million hectares of exploitable meadows, making Ningxia one of the ten major pastures in China. The Weining Plain that features 0.37 million hectares of land irrigated with water diverted from the Huanghe River is one of the four principal areas with gravity irrigation in northwest China. For years, the annual runoff of the Huanghe River through Ningxia has remained at 32.5 billion cubic meters, and the water resources allocated to Ningxia by the state for irrigation are 4 billion cubic meters.
The rich land resources, convenient conditions to divert water from the Huanghe River for irrigation, and abundant sunshine have laid a solid foundation for Ningxia to bring into play its advantages in the development of agriculture. Crops, melons, and other fruit are doing well in the irrigated area. Watermelon, apple, and grape from the irrigated area have a 15-20 percent higher sugar content than those produced in central China. The per-hectare yield of single-cropping paddy reaches 47 kilograms, placing Ningxia in front among the provinces and autonomous regions in western China and turning it into one of the nation¡¯s 12 grain production bases. Effort is being taken to build Ningxia into a national agricultural demonstration area with high yield, high efficiency, and fine quality.
Livestock breading makes up of 29 percent of the local agriculture. Of the 82,000-hectare water surfaces, 10,000 hectares can be used for aquaculture. Ningxia produces various species of carp, river shrimp, and river crabs. There is a great potential for the development of aquaculture. In recent years, Ningxia has seen a rapid development of the aquatic production. It leads other provinces and autonomous regions in the northwest in the per-capita output of aquatic products.
is rich in mineral resources, with verified deposits of 50 kinds of minerals
including coal, gypsum, oil, natural gas, pottery clay, quartz sandstone,
and barite. The potential value of these natural resources per capita
is 163.5 percent of the nation¡¯s average, putting Ningxia fifth in the
country. There are abundant reserves of various kinds of coal. Ningxia
has formed a considerable scale of coal production. It leads the country
in the deposits of gypsum, with verified deposits of more than 4.5 billion
tons. Top-grade gypsum makes up half of the total deposits. The Huojiakouzi
deposit in Tongxin County features a reserve of 20 tons of gypsum in 20
layers with a total thickness of 100 meters. It is a rarely-seen large
gypsum in China. The reserve of oil and natural gas is ideal for a large-scale
development of oil, natural gas, and chemical industries. There is a considerable
deposit of quartz sandstone, of which 17 million tons have been ascertained.
In addition, there are phosphorus, firestone, copper, iron, other minerals
as well as Helan stone (a special clay stone).
The northern part of the Ningxia Hui Autonomous Region is
surrounded by the Tengger, Maowusu, and Ulan Buh deserts. There is a serious desertification in the autonomous region. The crisscrossing gullies and ravines in the southern part caused a serious water loss and soil erosion. But in the long years of efforts to transform nature, the people of Ningxia have made achievements of world interest. A latest statistics showed that the area of decertified land has shrunk from 16,5000 square kilometers in the 1970s to present-day 12,600 square kilometers, a decrease of 23.6 percent, making Ningxia the first among China¡¯s provinces and autonomous regions to realize a decrease of its decertified area.
Ningxia has a forest land of 400,000 hectares with a standing-timber reserve of 6.74 million cubic meters. The forest cover has shot up from 1.3 percent in the 1950 to today¡¯s 6.4 percent. In the last 40 years, the Zhongwei Sand-Fixing Tree Farm on the fringe of the Tengger Desert has adopted the ¡°square grass-planting method¡¯¡¯ and other measures to check the wind and fix shifting sand, ensuring a smooth operation of the Baolan (Baotou-Lanzhou) Railway, China¡¯s first railroad passing through deserts. The tree farm was cited by the United Nations as one of the ¡°world¡¯s 500 best tree farms¡¯¡¯ in environmental protection.
Remarkable results were also achieved in the prevention of industrial pollution and the maintenance of the quality of urban environment. From 1991 to 1996, Ningxia saw an annual increase of 11.4 percent in its industrial production, but the environmental quality did not deteriorate. The percentage of treatment of industrial wastewater and that of the removal of smoke dust have risen from 38 and 86 in 1991 to 76 and 90 respectively.
Total population: 5.433 million (1999), increasing by 67,000 people or 1.25 percent over that of 1998.
Population growth rate: 1.797 percent for birth rate, 0.565 for death
rate, and 1.232 percent for population natural increase.
Life expectancy (average): 69
There are 1,829,700 people of the Hui ethnic group,
accounting for 34.1 percent of Ningxia¡¯s total population, or one-fifth of China¡¯s Hui population. The Hans make up 65.36 percent of the population in the autonomous region. In addition, there are in Ningxia another 33 ethnic minority groups. Most of the Huis live in Tongxin, Guyuan, Xiji, Haiyuan, and Jingyuan counties as well as Wuzhong City and Lingwu County in the area irrigated with water diverted from the Huanghe River.
The attendance rate of school-age children in primary schools
is 96.7 percent and that in junior high schools is over 60 percent. There are 37 vocational high schools. The non-illiterate rate of the young and middle-aged reaches 89.5 percent. In 1996, Ningxia was awarded an international illiteracy-elimination prize by the United Nations. A total of 4,487 students were enrolled in institutes of higher learning and special colleges. The number of students in colleges and universities reached 13,121, an increase of 1,609 students or 26.5 percent over the figure of 1998. There are 25 polytechnic schools with a student body of 16,370.
GDP: 24.2 billion yuan (1999)
GDP growth rate: 8.7
percent over 1998
GDP ratio (1st, 2nd, and tertiary industries): 20:42:38
Poverty alleviation plan
In 1999, 143,000 poverty-stricken people in rural Ningxia
solved the problem of food and clothing, accounting for 51.3 percent of the 279,000 poverty-stricken people (not including those who became poverty-stricken again after getting rid of poverty-stricken) in 1998. The percentage of poverty-stricken people dropped from 1998¡¯s 13.2 to 1999¡¯s 6.2.
Unemployment rate: 4.5 percent (1999), 0.2 percent less than 1998.
Revenues: 1,884 billion yuan
Industrial output value: 25.23 billion yuan, an increase of 9 percent over that of 1998 as calculated according to constant price.
Agricultural output value: 7.795 billion yuan, an increase of 4.7 percent over that of 1998.
Ningxia has established economic and trade ties with more than 70 countries and regions and has carried out extensive cooperation and exchanges in industry, agriculture, science, technology, public health, culture, education, art, and sports. A number of production bases for export industrial and agricultural products were set up. More than 350 kinds of commodities, such as coal, tantalum products, iron alloy, bicyanamide, electrolytic aluminum, tires, Chinese wolfberry, and licorice root, were exported.
In 1999, effort was made to open new market for export and find new potentials of growth. As a result, the situation in export turned for the better. The annual import and export value was US$390 million, an increase of 24.6 percent over the figure of 1998. The volume of export was US$319 million, an increase of 13.1 percent and the volume of import was US$71 million, an increase of 1.3 times.
Foreign funds were used in more than 20 fields, including energy, transportation, and communications, the energy-consumption metallurgy, agriculture, water conservation projects, technical renovations, medicine, public health, and environmental protection. Funds were raised through different channels--investment by foreign businessmen, loans from foreign governments and international financial organizations, and international commercial loans. The total foreign funds attracted made up one-fourth of Ningxia¡¯s construction funds.
The amount of foreign funds actually used was US$40.41 million. In 1999, 46 agreements were signed with a contracted foreign investment of US$99.11 million. After rectifications, the number of the three types of foreign-funded enterprises in Ningxia was 396 at the end of 1999, 28 less than the figure of 1998.
Ningxia has formed an industrial system of coal,
electric power, metallurgy, textiles, papermaking, and foodstuffs.
Telephone lines have reached all the villages, making Ningxia the first among the provinces and autonomous regions in the northwest to achieve this. In 1999, there were 12 phones for every hundred people in the autonomous region.
present, a digital mobile and wireless telephone network covers the whole
autonomous region and is connected with networks in other provinces and
autonomous regions throughout China. People in Yinchuan, capital of the
autonomous region, can dial directly to 195 countries and regions in the
world. Mobile and magnetized card telephones, fax, and other communication
means bring Ningxia closer to the rest of the world.
By January 1999, there were 114 film projection units, 4 radio broadcasting stations at the prefectural or higher levels and 8 short- and medium-wave transmitting and relay stations, covering 82.3 percent of the population. There were 4 TV stations at the prefectural or higher levels as well as 9 TV transmitting and relay stations. Cable TV broadcasting made unceasing progress. TV broadcasting reached 83 percent of the population in Ningxia.
The Baotou-Lanzhou Railway passes through northern and central Ningxia, and the Zhongwei-Baoji Electrified Railway, the second passage from the coastal areas to the northwest, turns Ningxia into a vital point on the ¡°second Eurasian bridge.¡± The completion of the electrification of the Baotou-Lanzhou Railway will further improve transport facilities in the autonomous region.
The length of highways open to traffic increases at a speed of 330 kilometers yearly. The total length of highways is 8,700 kilometers, including 7,900 kilometers of various grades. Ningxia is one of China¡¯s provinces and autonomous regions with a dense distribution of highways. Yinchuan is the center of a network composed of 13 national and provincial highways as well as more than 100 county and township highways that lead to all parts of the autonomous region.
Six highway bridges have been built over the 397-kilometer section of the Huanghe River flowing through Ningxia, averaging one bridge on every 66 kilometers of the river course. Construction of the seventh bridge is now under way.
September 1999, the Hedong Airport in Yinchuan, a fourth-degree modern
airport which allows various large- and medium-size aircrafts to take
off and land, went into operation. Yinchuan has air routes to Beijing,
Shanghai, Xi¡¯an, Guangzhou, Foshan, Chengdu, Urumqi, Wuhan, and Chongqing
and formed an aviation network leading to north, southeast, and southwest
VI. Projects wanting foreign investment
Hi-tech enterprises established in the Yinchuan Hi-tech Development Zone
to produce value-added products for export.
VII. Favorable policies for foreign investment
Article 1: All the natural resources, industries, and marketsin Ningxia except those especially stipulated by the state are open to the whole country. State-owned, collective-owned, private-operated, the three types of enterprises, businessmen working on their own, colleges, universities, and research institutes in and outside of Ningxia are welcome to carry out multi-level, multi-form, multi-factor economic and technological cooperation or run enterprises with investment of their tangible and intangible assets. The autonomous region shall render prompt, satisfactory service in registration, approval of the establishment of projects, and the creation of necessary conditions.
Article 2: Productive enterprises with exclusive foreign investment (including bases established for the production of raw materials) may enjoy exemption from the income tax for five years upon the commission of the enterprises and a refund of 25 percent of the value-added tax, urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, and house tax within a period of five years after the enterprises are in operation. They shall be exempt from the tax for the use of land during the period of construction and for another five years after they are in operation. Enterprises engaged in the development of resources shall be entitled to a refund of the resource tax for three to five years and exemption from the additional fees of the circulation tax. The income of the enterprises during the income-tax exemption period shall be regarded as duty-paid. After the expiration of tax exemption, proper tax reduction shall be granted to the enterprises which have difficulties in operation or need a large amount of investment for technical renovations and expansions. Preferential policies can be liberalized to a proper extent in Taole County and the eight counties in the mountain area of southern Ningxia.
Article 3: Productive joint ventures and cooperative enterprises newly established in Ningxia as well as key extension projects approved by the state and autonomous region with the amount of investment by outside partners accounting for more than 25 percent of the total investment and the term of joint venture and cooperation more than ten years may enjoy a three-five years¡¯ exemption of the income tax for the newly-added economic result in accordance with the ratio of investment by the outside partners, a 25 percent refund of the value-added tax and a 50 percent refund of the urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, tax for land-use, and house tax for five years. They shall also be entitled to exemption from the additional fees of the circulation tax as stipulated by the government of the autonomous region. During the tax exemption and reduction period, the profits distributed to them shall be regarded as duty-paid. Preferential policies may be liberalized in the eight counties in the southern mountain area and Taole County to a proper extent.
Article 4: Ventures with exclusive foreign investment and cooperative enterprises (with outside partner¡¯s investment more than 500,000 yuan and the term of cooperation longer than five years) in tertiary industry (not including the development of real estate, recreational businesses, catering industry, and hotel industry) shall be entitled to a 3-4 years¡¯ exemption from the income tax, a 1-2 years¡¯ refund of the business tax, a three years¡¯ refund of 50 percent of the urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, tax for land-use, and house tax.
Article 5: Ventures with exclusive foreign investment, joint ventures, and cooperative enterprises established in the autonomous region may enjoy a 30-50 percent discount of the fixed land price for using cultivated land upon approval by the government. They shall be allowed to transfer the right for the use of land after five years of operation.
Article 6: Those engaged in the development of agriculture, forestry, animal husbandry, and fishery shall be exempt from the agricultural tax and tax for special agricultural and forestry products for six years from the year they begin to make profit. Those engaged in the development of poverty-relief projects in the eight counties in the mountain area and Taole County shall be exempt from the agricultural tax and tax for special agricultural and forestry products for ten years. The wasteland they need can be provided by means of assignment.
Article 7: Ventures exclusively with one¡¯s own investment and proprietary cooperative enterprises engaged in highly-processing agricultural resources and the amount of investment surpassing two million yuan shall be exempt from the income tax for eight years beginning with the year they are in operation. Those with investment surpassing five million yuan may enjoy income-tax exemption for ten years beginning with the year of operation.
Article 8: Scientific research institutes, colleges, universities, enterprises, and non-government scientific and technological establishments from other places coming to set up entities or carry out technology transfers, technical consultations, technical services, and technical training in the autonomous region shall be exempt from the income tax levied on earnings they make by offering technical services and the additional fees of the circulation tax as stipulated by the government of the autonomous region. Their business tax shall first be collected and then refunded.
Article 9: Colleges, universities, research institutes, enterprises and individuals from other places are encouraged to join hands with the autonomous region in the development of productive projects by becoming shareholders with their famous-brand products or technology. Holders of the technical shares may draw part of the after-tax profits (no more than 20 percent) and then share out the dividends on the basis of the number of shares they hold three years after the projects have been in operation. Special preferential policies may be worked out for projects which put out high-grade, new, precision, or advanced products or products with a high reputation in and outside of the country.
Article 10: Any units and individuals that help productive enterprises in the autonomous region carry out technical transformations and achieve marked economic results, besides being paid according to the contracts, shall be entitled to a bonus equal to 10-20 percent of the newly-added after-tax profit the enterprises make in the year the enterprises are in operation.
Article 11: Colleges, universities, research institutes and technical personnel from other places are encouraged to sign technical contract with enterprises in the autonomous region. The contractors that have fulfilled the contractual technical obligations and achieved remarkable economic results, in addition to the payment they receive according to the contracts, shall be entitled to a bonus of 10-20 percent of the after-tax profit made in the year the contracts are signed or the following year. Those who have turned around money-losing enterprises or reduced money losing by a big margin shall be amply rewarded in accordance with the economic results of the enterprises.
Article 12: Colleges, universities, research institutes, and non-government scientific and technological establishments from other places which join hands with research institutes and enterprises in the autonomous region in developing new products shall have the priority to be included in the plan of science and technology development of the autonomous region and be provided with appropriate loans. The expenses incurred in new product development and technical transformation shall be included in the cost of the year. In case the amount of expenses is large, these expenses may be included in the cost by installments in the following years. Enterprises that develop and manufacture what the autonomous region holds as hi-tech products may draw 10-20 percent of the newly added after-tax profit to encourage and reward research personnel concerned within three years beginning with the year in which they are in operation.
Article 13: Enterprises shall be encouraged to hire on contract or take in talented personnel urgently needed. The wage rates of the needed personnel shall be settled through negotiations by the two sides involved, subject to no restrictions. Those who have made special contributions to the enterprises shall be encouraged with special bonuses. Those with a medium or senior professional title and the term of their contractual services is more than five years shall be allowed to change the domicile of their spouses and children under the age of 18 from rural to urban areas and entitled to exemption from the urban-accommodation supporting fees, subject to approval by the government at the corresponding level. Priority shall be given to their children in attending school and obtaining employment.
Article14: Scientific and technological personnel from other places who come to work in the rural enterprises and urban collective-owned enterprises in Ningxia may bypass the convention to be hired to professional posts and be entitled to appropriate wages and other terms of employment.
Article 15: Managerial personnel from other places are welcome to carry out fair competitions for management posts in Ningxia¡¯s medium-size and small enterprises and exercise leadership over, contract to operate, or become trustees of the medium-size and small enterprises in the autonomous region. Their wage rate shall be fixed according to the economic results of the enterprises, subject to no restrictions. For those who have created marked economic results, the enterprises shall give a nonrecurring reward of less than 500,000 yuan, subject to approval by the people¡¯s government.
Article 16: Superior enterprises from other places are encouraged to engage in joint operation with enterprises in the autonomous region. Cooperative enterprises with outside enterprises¡¯ investment more than 25 percent of the total investment and a term of cooperation more than ten years shall be exempt from the income tax for the portion of income exceeding the base quota due to the local revenues for three years, on the premise that the said base quota is guaranteed.
Article 17: Outside superior enterprises are encouraged to invest their tangible and intangible assets in transforming money-losing enterprises in the autonomous region and allowed to offset the red numbers of the money-losing enterprises with profits. They shall also be exempt from the business income tax for three years after the losses are remedied. Enterprises engaged in the transformation of the local enterprises with serious losses shall be entitled to a three-year refund of 25 percent of the value-added tax already paid, so as to offset the losses.
Article 18: Outside enterprises are welcome to annex and purchase enterprises in the autonomous region. The annexed and purchased enterprises that have a satisfactory operation shall be exempt from the income tax for the portion of income exceeding the base quota due to the local revenues for three years, on the premise that the said base quota is guaranteed. The annexed and purchased enterprises making meager profits or suffering short-term losses may enjoy exemption of the business income tax and a refund of 25 percent of the value-added tax for the portion exceeding the base quota due to the local revenues for four years, on the premise that the said base quota is guaranteed. The annexed and purchased enterprises with serious losses shall be treated according to Article 2, subject to approval by the government at corresponding level.
Article 19: Outside institutions and individuals are encouraged to operate under lease contract part or the whole of enterprises in the autonomous region. Institutions and individuals renting an enterprise in red numbers may enjoy a three-year exemption from the income tax after they turn around the money-losing enterprise. Those whose lease contract is more than three years shall be entitled to a nonrecurring refund of 50 percent of the last year¡¯s rent upon examinations and approvals reveal that they have fulfilled or surpassed the operation target at the expiration of their contracts.
Article 20: Enterprises suffering from serious losses in the autonomous region may determine the value-preservation and value-addition norms of their properties and be voluntarily trusted to superior enterprises from other places for a certain period. The term of trusteeship is normally three to five years. During the period of trusteeship, the enterprises may enjoy exemption from the business income tax and the additional fees of circulation tax as stipulated by the government of the autonomous region, a refund of the full amount of urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, the tax for the use of land, and house tax as well a refund of 25 percent of the value-added tax exceeding the base quota due to the local revenues on the premise that the said base quota is guaranteed. The trustees may have the newly added profits created during the period of trusteeship should they fulfill the target of value-preservation. In that case, the trustees shall be regarded as already paying the tax.
Article 21: Outside enterprises annexing enterprises in the autonomous region shall implement the regulations as stipulated in The Circular on Rectification of the Issue of Suspension, Reduction, and Postponement of the Interest of Loans of Annexed, Dissolved, and Bankrupted Enterprises by the People¡¯s Bank of China and other banks (see yinfa document No. 113-1993). In addition to carrying out the above said regulations, outside enterprises annexing enterprises in urban Yinchuan and those included in the autonomous region¡¯s list to experiment optimization of capital structures, and state-designated key enterprises from other place annexing Ningxia¡¯s enterprises shall also carry out the regulations as stipulated in The Circular on the Issue of Bank Loans and Interest After the Enforcement of Encouraging and Supporting Superior Enterprises from 18 Pilot Cities to Annex State-Owned Enterprises in Difficulties by the People¡¯s Bank of China and departments concerned (see yinfa document 130-1995).
Article 22: Priority shall be given by the bank in providing circulating funds and loans for technical transformations and science and technology development to outside hi-tech enterprises which cooperate with the autonomous region¡¯s enterprises in the production of products, ancillary products, and spare-parts and enable the local enterprises to become the backbone of revenues at the autonomous regional, prefectural, or county level and to export products and earn foreign currency after the expansion of their production capacity. The interest rate of loans shall not go up for enterprises that have good economic results or export products to earn foreign currency.
Article 23: In accordance with the principle of equal priority, banks within the autonomous region shall give priority in granting loans to support cooperative projects between China¡¯s eastern and western regions, and the length of maturity shall be as long as the set limit allows. The length of maturity may be prolonged in case that the loans cannot be repaid by the set schedule. Under ordinary circumstances, the interest rate of loans shall not float upward but be handled according to the reference rate or go down within the range of 10 percent. In case that state-owned banks lacks loan quota, the People¡¯s Bank of China shall help the said banks to submit applications to the head office of the People¡¯s Bank of China for the needed loan quota, or cut down other loans to regulate loan quota for the cooperative projects between the eastern and western regions.
Article 24: The People¡¯s Bank of China shall give priority to outside enterprises participating in cooperative projects to establish shareholding system in, annex, or restructure the existing enterprises in the autonomous region in making arrangement for them to issue local enterprise bonds or giving them short-term fund-raising support.
Article 25: The Agricultural Development Bank shall favor loan granting according to the merits of outside enterprises which operate poverty-relief economic entities in the eight mountainous counties and Taole County; engage in land improvement and development in the areas for comprehensive agricultural development as stipulated by the state; support the renewal of economic forests and fruit trees and the development of name-brand, quality, and special products; or engage in deep-processing of forest products and the development of natural resources of the sandy areas in the autonomous region.
Article 26: Outside investors who come to establish joint ventures with state-approved enterprises producing articles for minority groups may enjoy preferential interest rate for the loans they borrow from the bank as circulating funds according to relevant regulations, a refund of interest differential subsidization from the bank at the end of every quarter of the year to subsidize their own circulating funds.
Article 27: To provide various branches of insurance to enterprises with lateral economic ties. Insurance companies shall render various insurance services including service by special arrangement, adopt a flexible approach to insurance period and insured amount, and give preferential treatment by reducing the premium or rewarding for safety in production in light of the specific amount an enterprise insures. When handling claims by large and medium-size enterprises for disasters or accidents outside their domain, the insurance company may prepay 50 percent of the indemnity according to the extent of liabilities or an initial estimate of the losses prior to the settlement of the claims, so as to help the affected enterprises restore production as soon as possible.
Article 28: Any units and individuals providing the autonomous region¡¯s productive enterprises with new techniques, new technologies, and new products or transferring scientific and technological achievements shall be entitled to a reward of 10 percent of the yearly newly-added after-tax profits from the beneficiaries for three to five years after the new techniques, new technologies, new products or scientific and technological achievements are put into production, in addition to receiving a nonrecurring transfer fee from the beneficiaries according to the contracts. The beneficiaries shall give a nonrecurring bonus of 1-3 percent of the yearly newly-added after-tax profits to the intermediaries according to the advanced degree of the new techniques, new technologies, and scientific and technological achievements, the notability of the new products the intermediaries introduced, and the economic results of the beneficiaries. To those who cooperate with the autonomous region¡¯s enterprises in other forms and bring about good economic results, the beneficial enterprises shall give a nonrecurring bonus of 1-2 percent of the annual newly added after-tax profits.
Article 29: To those who introduce domestic and foreign funds to the autonomous region, the beneficiaries shall give a nonrecurring bonus of 5-10 percent of the received amount according to the amount of funds they introduced, the actual sum received, the rate of interest, and the time of service of the funds, subject to approval by government at the corresponding level.
Article 30: To those who provide the autonomous region with sophisticated technologies and valuable information that bring about remarkable economic results to the local enterprises, the local beneficial enterprises shall give a nonrecurring bonus of 5-10 percent of the yearly newly-added after-tax profits.
Article 31: In accordance with the need in production and work, personnel who come from other places and work in the autonomous region¡¯s enterprises may apply for credentials to visit foreign countries and Hong Kong and Macao. The Department of Foreign Trade and Economic Cooperation and Foreign Affairs Office under the government of the Ningxia Hui Autonomous Region shall be responsible for examining and approving applications and issuing the said credentials.
Article 32: Priority shall be given by the autonomous region in offering services concerning the design, construction, and the supply of building materials, water, electricity, gas, and communication facilities to ventures with exclusive outside investment and joint ventures established through lateral economic ties. Priority shall also be given to them in arranging railway transport of their goods and products to other parts of the country.
Article 33: Enterprises funded wholly by outside enterprises and joint ventures in the autonomous region shall have the right to decide their way of operation, labor, pay scale, financial relations, product development, technical transformations, and gain distribution according to law. They shall also have the full right to make decisions on employment, subject to no restrictions of employment quota and urban or rural areas.
Article 34: These policies and regulations are suitable for all ventures with exclusive outside investment, joint ventures, cooperative enterprises to be established by individuals and enterprises from other parts of the country in the autonomous region in future as well as intermediary economic and technological services. In case that the policies and regulations concerning the establishment of lateral economic ties promulgated by the government of the autonomous region in the past are not in consistent with the above said policies and regulations, take the above said policies and regulations as the guideline.
Article 35: The Department of Foreign Trade and Economic Cooperation and the Commission of Science and Technology under the government of the Ningxia Hui Autonomous Region shall share according to their scope of official duties the responsibility for identifying the hi-techs, name-brand products, and new products involved in the above said policies and regulations and the economic departments and the competent departments in charge of the market of technologies at various levels, for identifying the introduction of funds and technologies and economic information intermediary services. The implementation, management, and supervision over the preferential treatment of tax exemption, reduction, and refund as well as the return of paid tax shall be the responsibility of the Department of Finance under the government of the Ningxia Hui Autonomous Region.