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Doing Business in Inner Mongolia
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I. Survey

(i) Geographic Location

Inner Mongolia Autonomous Region (IMAR) is located in the northern border areas stretching from the northeast to the southwest in a long and narrow shape. Lying between 97°12′E and 126°04′E , 37°24′N and 53°23′N, it is over 2,400 km from the east to the west and 1,700 km from the north to the south. It covers an area of 1.183 million square kilometers accounting for 12.3% of the country’s area; adjacent to, on the east, south and west in proper order, the eight provinces of Heilongjiang Province, Jilin Province, Liaoning Province, Hebei Province, Shanxi Province, Shaanxi Province, Ningxia Hui Autonomous Region and Gansu Province. Being close to Beijing and Tianjin, it cuts across parts of The Three Norths (for northeast of China, north China and northwest of China).On the north it is bounded by People’s Republic of Mongolia (PRM) and Russia Federation with a 4,221-km-long boundary line. With Hohhot as its capital city, IMAR governs 12 leagues and cities.

(ii) Climate

IMAR is mainly characterized by temperate zone continental monsoon climate with yearly average temperature of 0℃-8℃ and yearly temperature difference of 34℃-36℃. With sufficient sunlight i.e. abundant light energy there are 2,600-3,400 hours of sunlight in most parts of IMAR. The annual average rainfall ranges from 50-450 mm decreasing progressively from the east to the west, hence more in the northeast.

(iii) Population and Nationalities

IMAR had a population of 23.8640 million in 2005 with the urban population of 11.2638 million and the rural population of 12.6002 million, making up 47.2% and 52.8% respectively of the whole population. 55 nationalities live in IMAR including Han, Mongolian, Hui and Man, etc. Apart from Han,15 ethnic minority groups have a population of over 2 million including Mongolian, Hui, Man, Korean, Daur and Ewenke. Han constitute 18.538 million and Mongolia 4.127 million of the whole population.

(iv) Infrastructure and Transportation

Airports and Ports

There are 9 airports of civil aviation, i.e.Hohoot, Baotou, Hailaer, Xilinhot, Chifeng, Tongliao,Wulanhot, Manzholiand Wuhai. At present 8 Airways including the National Airways, China Southern Airways, China Eastern Airways, Hainan Airways, Shanghai Airways and Sichuan Airways have participated in the operation of the IMAR air market. IMAR is linked by 26 air routes with 28 municipalities including Beijing, Shanghai, Guangzhou, Xi’an, Chengdu, Haikou and Shenyang. The international regular air route to Ulan Bator the capital of PRM has been open to traffic and that of the chartered tourism airplanes to the countries and region of Russia, Thailand and Hong Kong, etc. Cargo transport has been also opened to the Commonwealth of the Independent States (CIS) including Russia. There are 23 cargo air routes in Hohhot Airport.

IMAR has continually quickened its pace in opening up and constructing various ports by making full use of the border advantage. Up till 2005 there were 18 ports including 11 grade-I ones and 7 grade-II ones. If classified by transport mode, there are 10 highway ports, 2 railway ports, 2 aerial ports and 4 water transport ports. A pattern of opening up ports has been preliminarily shaped on a omni-bearing and multi-channel basis. The international port economy, represented by that of Manzhouli, Erlianhot, Ceke, Ganqimaodao and so on, has gained rapid development. In 2005 the cargo and the passengers of entry and exit through the aforesaid international ports reached 27.01 million tons and 3.366 million person-times.

Highway

There are 16 national highways such as G109, G110, G111 and G203 as well as 51 provincial highways such as S101, S102, S201 and S301.There are a number of completed national trunk highways and important economic trunk highways, and a highway network of Three Transverse and Nine Longitudinal Highways and Twelve Outlets has been formed in the main. There is a mileage of 79,029 kms highways including 1,001-km expressways. The completed high grade ones include those from Hohhot to Baotou, from Baotou to Erdos, etc. In the completion years respectively those highways fulfilled a passenger transport of 286.04 million person-times, a passenger transportation volume of 17.90 billion person-kms, cargo transport of 510.20 million tons and cargo transportation volume of 32.34 billion ton-kms.

National Highway Distribution in IMAR



Railways

In IMAR there are 3 arterial railways, i.e. Beijing—Baotou, Baotou—Lanzhou and Jining—Erlianhot, and 7 feeder railways, (including a ring railway) i.e. Baotou—Baiyunebo, Baotou—Shijiazhuang, Wuhai—Jilantai, Haibowan—Gongusu, Baotou—Shenmubn and Guo—Cha. 2005 saw a mileage of 7,689 kms. Also that year saw a passenger transport of 32.59 million person-times, a passenger transportation volume of 11.32 billion person-kms, cargo transport of 220.62 million tons and cargo transportation volume of 160.43 billion ton-kms.

Telecommunications

IMAR is accessible by post to all the countries and regions in the world. The telecommunications network covers all the urban and rural areas throughout the Region, with international direct dialing reaching over 200 countries and regions. By the end of 2005 the number of subscribers of fixed and mobile telephones had reached 12.396 million, a 1.431 million subscribers increase over the previous year. The popularization of phones(including fixed and mobile) arrives at 52 sets per 100 persons. There is a total service income of RMB 27.61 billion yuan for post and telecommunications of which telecommunications makes up RMB 26.72 billion yuan and post RMB 0.89 billion yuan.

Finance and Insurance

There are financial institutions including IMAR Branch, Bank of China; IMAR Branch, Construction Bank of China; IMAR Branch, Industrial and Commercial Bank of China; IMAR Branch, China Bank for Agricultural Development. There are 5,660 business offices and a staff of 60,490 in that sector. Most of the institutions provide the international account-settlement service, international borrowing & lending and oversea banking. The end of 2005 saw a deposit balance of RMB 333.15 billion yuan for Chinese and foreign currencies, a loan balance of RMB 261.80 billion yuan. In 2005 there were 23 corp./groups including Yili Group, Ningcheng Laojiao Liquor Group, Hi-tech Corp. of Rare Earth, Mengniu Dairy Group and Baotou Aluminium Group, whose listed securities were admitted into the stock market. A fund of RMB 3.49 billion yuan by entry of stock market and by issuance of bonds.

In 2005 IMAR had 9 insurance branches at IMAR level, 52 insurance intermediary institutions, as well as 2,349 agencies. By the end of that year the total property in that sector reached RMB 12.83 billion yuan, with the yearly achieved premium of RMB 6.09 billion yuan. The successive insurance payments for claims got to RMB 1.42 billion yuan. That sector has played the roles of booster and stabilizing the society.

The Chief Banks in IMAR


(v) Foreign Exchange

In 2005 IMAR established economic ties with more than 160 countries and regions, and friendly cooperation with the U.S., Russia, Japan, France and Mongolia Republic and so on, which has greatly improved the process of IMAR opening up to the outside.

List of 14 Pairs of Friendly Cooperation Eestablished between IMAR (including its leagues) and Foreign States (municipalities)


(vi)Higher Education and Scientific Research

There are 33 universities, colleges and institutes in IMAR such as well-known Inner Mongolia University, Agricultural University of Inner Mongolia and Normal University of Inner Mongolia, etc. In 2005 there were 229,400 undergraduate students in IMAR.

There are 139 state-owned scientific research bodies in various subjects and a professional technical staff of 534,900. 2005 saw 260 major scientific and technological achievements including 17 basic theoretical achievements,234 technological application achievements and 9 soft scientific achievements.101 projects won the awards for their achievements, of which 1 achievement won the state award and 100 achievements won IMAR-level awards. And there were 1,455 applications for patent and 845 patents were approved and authorized.1,160 technological contracts of various types were signed with the achieved sum of RMB 1.1 billion yuan arising therefrom. The achieved sum arising from exporting technology totaled RMB 90 million yuan.

(vii)Tourism

Scenery and Landscapes

IMAR is abundant in tourism resources and unique in types. It features distinctly the grassland scenes, rich amorous feelings of ethnic minority, and the long history and culture. The boundless sea of forestry and woods, the resounding deserts, the lakes extending far into the distance, the numerous rivers, mysterious warm springs and the white and silver ice world---all of them giving off limitless glamour. On the Hulunber Prairie, the Xilinguole Prairie and the Xilamuren Prairie, the weeds and reeds are knee-deep. You can enjoy the splendid view that herds of cattle and sheep submerged in the sea of luxuriant grass could only be seen when the grass bends as the wind blows. The fossils of giant dinosaurs, the Dayao Cultural Relics, the ancient Great Wall, the Graveyard of Genghis Khan, he Lamasery, the relics of Liao Dynasty, Gaxian Cave and the Tomb of Wang Zhaojun are all reflections of the IMAR’s profound cultural realities beneath the surface. The Badanjilin Desert, the Tenggeli Desert, he Ulanbuhe Desert, he Maousu Desert and Qubqi Desert add radiance and beauty in contrast with the woods of diversiform-leaved poplars in Alashan, Heilihe River, Hulun Lake In Hulunber, the ice, snow and the warm spring in Aershan, the Daqinggou Natural Reserve in Tongliao and the Reserve of Virgin Forest in Helanshan Mountain. Those scenes constitute the grand views unique to IMAR.

Temple of Five Pagodas It is located in the hind street of Temple of Five Pogodas in Yuquan District in Hohhot and was built up in Yongzheng the fifth year in Qing Dynasty (1727).With the full name of Pagoda with Buddha’s Relic on Diamond Pedestal and being 16.5 meters high, it is composed of the pogoda base, the diamond pedestal and 5 small and exquisite pogodas. It is unique in figure, dignified and graceful. To the north of the Temple there is a screen wall on which an astronomic map of over 1,500 stars, the sun’s traveling orbit and the constellation of 28 stars is inscribed in the Mongolian language. It enjoys high value for scientific research.

Tomb of Wang Zhaojun Situated in the southern suburb of Hohhot, it is also called Green Tomb and is the tomb of Wang Zhaojun in Han Dynasty according to the legend. Being 33 meters tall and with a basic coverage of about 13,000 sq. meters, it was rammed into gyroscope shape. In front of the Tomb there is a god’s path, a decorated archway, a carved stone of a woman attendant in court and bronze statue, etc. The landscape around the Tomb is pleasant and full of unpredictable changes.

Wudang Lamasery Located in Wudang Valley on deep Yinshan Mountain to the northwest of Baotou and 70 kms from Baotou City, it is the largest and most integrated lamasery of Tibetan style.It was built in Kangxi reign of Qing Dynasty and was repaired and expanded repeatedly in the reigns of Qianlong, Jiaqing and Guangxu thus developing into today’s scale. Covering around 200,000 sq.meters, it consists mainly of 6 palaces, 3 halls, 1 room and 94 buildings for Lamas dwelling.The Lamasery in Tibetan construction style has 1,500 Buddhist statues in it, made of gold, copper, silver, wood and mud. Currently it is an important place for the disciples to conduct Buddhist activities and worship, where Manihui is held every year.

Graveyard of Genghis Khan It falls in the territory of Yijin-huoluo Banner in Erdos. In the middle of the 15th century, the Ordos Mongolian tribe which had been guarding the tomb of Genghis Khan migrated to Hetao, thus moving the mausoleum Babaishi there. At present the Tomb covers a total area of 80 sq. kms including the Central Square of Genghis Khan, the Golden Tent of Iron Horse, the Square of Asia & Europe, the Museum of Mongolian History and the Temporary Dwelling Palace of Khan.

State-level Natural Reserve of Erdos Little Gull It occupies an area of 88 sq. kms and has quite a few of lakes and islands. Residing on the Bird Island in the mid-south are the precious and rare aquatic birds---little gulls as class-I-protected bird in the country, accounting for 60% of the worldwide in quantity. Furthermore, there are over 80 categories of other wetland birds such as aquatic and wading birds. It is an ideal resort for traveling.

Hulunber Prairie It is a world-known grassland with abundant water and grass. There are over 3,000 rivers crossing each other, over 500 lakes distributed here and there, as many as 3,000 kinds of vegetation, inhabited by more than 400 kinds of beasts and birds. It is an actually area of Green and Clean Land. It is a green sea of grass in summer, a golden world in fall and in white and silver coverings in winter, with forthcoming vigor.

Aershan In Mongolian it means the Warm and Holy Water and is at the middle ridge of the Daxinganling Mountains. It is under the jurisdiction of the Xing’an League and with 63% forest coverage. The excellent surroundings for ecological tours make it the Natural Oxygen Bar and a Summer-avoiding Resort. The famous scenic spots include Tianchi, Lake of Cuckoo, Shitanglin, Santan Valley, Peak of Rose and Halaha River. You can as well enjoy the topographic features of volcanic slag, experience the icy and snowy world of jade-white and silver trees and blossom in the snow…

Diversiform-leaved Poplars in Ejina Banner It is within the territory of Alashan League. The diversiform poplar is an old tree species with long span of life. The fossils of it discovered in Xinjiang Autonomous Region have a history of 6,500 years. In autumn the leaves of such trees, along the corridors from Murengaole to Gashunnur and Subonur, turn to golden color like a vast and golden ocean.

Badanjilin Desert Being the third largest desert, it is in the middle part of Alashan League and covers an area of 49,200 sq.kms. The innumerable high hills of sounding sand in the desert and 114 little inland lakes add beauty and charm to each other, becoming an inimitable desert sight. Such pleasure programs as desert sightseeing, expedition and inspection are open to travelers.

Featured Products

Such products include black moss, fiddlehead, a kind of dried mushroom, black fungus, bear’s-head mushroom, day lily, Cistanche salsa, sea-buckthorn, Chinese Ephedra, licorice, mastsutake, blueberry, Astragalus mongholicus, bitter apricot kernel, a kind of small melon seeds, naked oats and Hetao golden melon.

Black moss Another popular name for it is Dimao, a kind of wild algae as thin as hair, rich in nutrition, healthful and also non-staple food.The black moss collected in Inner Mongolia amounts to 25-30 thousand kg annually and is of well-known quality.

Saline Cistanche It is also called desert cistanche, a parasitic herbaceous perennial which is parasitized on the roots of red sahay, salt melon claws, zhenzhucao, nitraria grass and splendens. It is crowned with the renowned title of Desert Ginseng, as it is a good tonic.

Characteristic Food

Such food includes wholly-roast sheep, mutton slice in hot pot, roast gigot, Mongolian stewed lamb (eaten with hands), roast sheepback, koumiss, skin on boiled milk, cheese, milky tea, butter, grilled bottom of camel’s foot, fried hump with sweet/sour sauce, steamed dumplings with the dough gathered at the top, oat noodles and buckwheat fl our noodles.

Wholly-roasted Sheep Famous Mongolian delicacies which is prepared for grand feast on spectacular occasions or for entertaining ditinguished guests.Normally, the fat sheep from the grassland about 20 kg is singled out to be butchered.And then the sheep wool is shaved but skin is retained, after which the abdomen is stuffed with such flavourings as onion, ginger, red pepper and salt,etc and is roasted into finished product. Being whole in figure, the sheep kneels on the square wodden plate appearing golden-red in color.The skin is crisp while the mutton tastes tender and delicious.

Shaomei Also called Shao’mei, famous in the City of Beijing as early as Qing Dynasty and is of long history and traditional taste in Hohhot.Worked with unique cooking skill and sclected material, the flour wrapping does not tear easily and thin while the filling is made up of ground mutton in proper proportion of fat and lean, with full flavourings such as onion and ginger,etc.When they leave the steamer, Shaomei will give off fresh and pleasant smell. Shaomei tastes delicious but not greasy and is really the delicacy of foods.

II. Economy

(i) Data on GDP

In 2005 GDP in IMAR came to RMB 389.5 billion yuan with GDP per person being RMB 16,331 yuan, which equals $ 2,028 dollars by the current exchange rate. The industrial structures have been further optimized, and the proportions of the primary industry, the secondary industry and the tertiary industry are 15.7∶44.1∶40.2, achieving the total output values of RMB, 58.97 billion yuan, RMB 177.32 billion yuan and 153.28 billion yuan respectively.

(ii) Main Industries and Resources Resources

IMAR is abundant in mineral resources, over 120 kinds of which have been discovered and 78 kinds of deposits have been proven. The proven deposits of pyrite, rare earth, niobium, beryllium, zirconium, ice-land spar, vermiculite and agate rank the first in the country. The deposits of the following elements holds an important position in China: chromium iron, copper, lead, zinc, tungsten, molybdenum, manganese, gold, silver, fluorite, limestone, petroleum, black lead, gypsum, rock quartz and brim stone. Especially, the coal deposits are greatly sufficient. The accumulated proven deposits of 240.0 billion tons make up 25% of the country’s total amount, raking the second in the country. The rare earth is unique and enjoys reputation at home and abroad. The proven deposits of rare earth oxide accounts for 90%, holding the first place worldwide. Wind energy resource is abundant at home, which is equal to 5.4 billion KW, accouting for more than 30% of that of the country.

(iii) Data on Agriculture and Industry

Agriculture

In 2005 the total area under crops throughout IMAR was 6.216 million hectares, of which the sown grain area was 4.374 million hectares and the area for cash crop was 1.040 million hectares. The crops mainly include corn, wheat, rice, potatoes, beans, sunflower seeds, rapeseed, vegetables and fruits, etc. The output of crops in 2005 reached 16.622 million tons. The meadow of IMAR covers an area of 86.667 million hectares. By the end of that year the total number of domestic animals came to 62.032 million providing 2.299 million tons of meat and 6.969 million tons of dairy products. The aquatic products got to 83,000 tons.384,000 hectares of afforestation were completed in 2005.


Industry

An industrial system has been established with the following sectors as its focuses: coal, power, metallurgy, chemical industry, machinery, building materials and processing of agricultural and domestic animal products. In 2005 IMAR achieved RMB 386.16 billion yuan for gross industrial output value, of which RMB 168.43 billion yuan was covered by the state-owned and the state-owned holding enterprises. 11 domestically famous brands and 22 listed corporations such as Erdos Cashmere Product Group, King Deer Cashmere Product Group, Yili Dairy Product Group and Mengniu Dairy Product Group emerge and become important bases for manufacturing agricultural and animal-by products, scientific research and production and supplying energy and materials. In future IMAR will put emphasis on developing the 6 major industries including energy, chemical industry, metallurgy, processing of agricultural and domestic animal products, equipment manufacturing and high & new technology.


(iv) Data on Business

Foreign Trade

In 2005, the import & export amount of IMAR achieved $ 4.87 billion dollars, of which the export accounted for $ 1.77 billion dollars and the import for $ 3.1 billion dollars. As for export, the general trade made up $ 1.26 billion dollars and the processing trade $ 0.41 billion dollars. As for import, the general trade made up $ 0.88 billion dollars and the processing trade $ 0.31 billion dollars.


Foreign Capital

IMAR has been accelerating its pace of making use of foreign capital and the performance and level have been distinctively enhanced since the country’s reform and opening up .By the end of 2005, there were 2,597 newly approved foreign-invested enterprises in IMAR with actual foreign capital utilization being $3.57 billion dollars. In 2005 alone there were 197 such enterprises approved to be set up, with contractual foreign capital utilization being $1.38 billion dollars and actual utilization being $1.19 billion dollars. Of the 197, there are 86 joint venture projects with contractual fund being $400 hundred dollars, 28 cooperation projects with contractual fund being $170 million dollars and 83 solely foreign-owned projects with capital utilization being $810 million dollars. Those foreign investors mainly come from over 70 countries and regions such as Hong Kong, Japan, the U.S. and the British Virgin Islands, etc. investing in over 20 industries such as chemical industry, power development, high load energy industries, telecommunications and electronics.

International Cooperation in Economy and Technology

In 2005, IMAR signed, with foreign countries,92 contracts of project construction, design & consultation and overseas laborer service with total contracted value reaching $180 million dollars, completed turnover reaching $ 61million dollars and the labour force assigned abroad achieving 6,900 person-times. By the end of 2005, IMAR approved 317 overseas investment enterprises with investment amounting to $ 1,700 million dollars. The major investing destinations are Russia and Mongolia, involving industries like fur processing, cement products, dairy Product processing, resources cooperation and exploration and so on.


Domestic Trade

In 2005, IMAR realized the sum of RMB 134.41 billion yuan for the social retailing of consumer goods, of which the trade of whole sales and retail covered RMB 107.17 billion yuan and hotel & restaurant sales covered $ 22.96 billion yuan.

Port Economy

In 2005, the port entry and exit freight volume of IMAR achieved 27,009 thousand tons, in which the entry freight volume was 24,990 thousand tons and exit freight volume 2,019 thousand tons. The entry passenger volume reached 3,366 thousand per-time and the entry and exit vehicles reached 608 thousand.

III. Investment

(i)Policy and Administrative Rules

Catalogue of Related Laws

Foreign Trade Law of the People’s Republic of China

Customs Law of the People’s Republic of China

Law of the People’s Republic of China on Import and Export Commodity Inspection

Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures

Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures

Law of the People’s Republic of China on Foreign-Capital Enterprises

Company Law of the People’s Republic of China

Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine

Law of the People’s Republic of China on Control of the Entry and Exit of Aliens

Law of the People’s Republic of China on the Control of the Exit and Entry of Citizens

Securities Law of the People’s Republic of China

Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises

Individual Income Tax Law of the People’s Republic of China

Law of the People’s Republic of China on the Administration of Tax Collection

Environmental Protection Law of the People’s Republic of China

Law of the People’s Republic of China on Evaluation of Environmental Effects

Law of the People’s Republic of China on Promotion of Cleaner Production

Law of the People’s Republic of China on Prevention and Control of Desertification

Marine Environment Protection Law of the People’s Republic of China

Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution

Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste

Law of the People’s Republic of China on Prevention and Control of Water Pollution

Law of the People’s Republic of China on Prevention and Control of Environmental Noise Pollution

Law of the People’s Republic of China on Prevention and Control of Radioactive Pollution

Frontier Health and Quarantine Law of the People’s Republic of China

Labour Law of the People’s Republic of China

Trade Union Law of the People’s Republic of China

Searching Website for the Related Laws

1. Searching System of Laws and Regulations of China (website of National People’s Congress of China)

http://law.npc.gov.cn:87/home/begin1.cbs

2. China Legislative Information Network System

http://www.chinalaw.gov.cn/jsp/jalor/index.jsp

3. Ministry of Commerce

http://www.mofcom.gov.cn

The above-mentioned websites are for reference only.

(ii) The Key Industries and the Major Products Encouraged by IMAR to be Invested in

1.Infrastructure

Construction and operation of the local highways; construction and operation in electricity generation by natural gas; construction and operation of thermo-power plant which produces heat and power; processing of garbage and sewage; municipal supply of water; construction and operation of natural gas supply plant; and construction of civil airport, etc.

2.Agriculture and Husbandry

Production of fine agricultural and animal-by products; planting and management of grass and woods; nuisanceless serialized development and production of agricultural and animal by-products; construction of bases for breeding good strains of livestock and plants; development and production of organic fertilizer resources; and freshness-retaining techniques for vegetables, fruits and meat, etc.

3.Industry

Food Processing: production of dairy products; storage and processing of grains, vegetables, fruits and by products of chicken and other livestocks; development and production of vegetables-fruits beverages, protein beverages, instant food and health care food.

Textile Industry: production of high-grade shell fabric from cashmere and wool; and specialized construction-oriented fabric.

Chemical Industry: production of petroleum chemicals, fine petroleum chemicals and coal chemicals; production of biological pesticides and fertilizers; and comprehensive utilization of exhaust gas, waste liquor and slag muck, etc.

Nonmetallic Mineral Manufacturing: latest building materials; deep processing of nonmetallic minerals (super-finely ground, highly purified, refined and modified);and manufacturing of inorganic nonmetallic materials and products thereof.

High Load Power Industry: iron alloy, electrolytic aluminium and aluminium, calcium carbide and crystalline glass decoration board.

Electromechanical Equipment industry: heavy trucks and their parts; manufacturing of specialized equipments; and development and comprehensive utilization of ferrous metals, non-ferrous metals and rare metals, etc.

4.The Tertiary Industry

Development and construction of common housing estate; development of grassland tourism and construction and management of scenic spots; information and consultation services; development of high and fresh technology and technical service; and construction and management of development zones, etc.

(iii)General Procedures for Setting up Foreign-invested Enterprises

(iv) Living Environment

Municipal Surroundings

With rapid development of national economy, IMAR has gained increasing growth for its urbanization and such conditions as municipal housing, afforestation, water and heat supply and sewage treatment have been increasingly improved. With the urbanization rate getting to 47.2% in IMAR, the per capita housing area has risen to 23.2 sq. meters. The per capita green land has gone up to 7.8 sq. meters while the daily treatment capacity of municipal trash is 9,000 tons. And there is a daily treatment capacity of 0.944 million tons of sewage hence the quality of municipal air being prominently improved.

Medical Care

IMAR has altogether 1,834 various medical care bodies and institutions with 69,440 sickbeds and staff of 121,180,among them there are 102,587 medically technical persons.

Regulations Concerning Aliens Applying for Visa and Residence Permit

1. The target groups for such residence permit:(1)Aliens who hold Z,X, J-1 visas issued by Chinese embassies, consuls, Hong Kong Government Office and Macao Government; (2)Aliens who are exempt from visas pursuant to mutual exemption agreements but have stayed more than the prescribed period. However, this regulation is not applicable to the accompanying children, parents, parents-in-law, cohabitants of those staff who work at the other countries’ embassies, consuls and resident missions in China; nor is it applicable to the non-lineal relatives who are permitted by the Protocol Department under the Chinese Ministry of Foreign Affairs, the United Nations’ officials, government officers who are on aiding China projects and/or who work in China in a long term manner according to mutual agreements, and their family dependants as well as other personnel who came to China on business. (3)Aliens who entered China with L, F and J-2 visas but have the essential papers to apply for residence permits.

2. Those who apply for the visa and the residence permit must reply to the related inquires and forward the following papers: (1) valid documents for international tours, including the diplomatic passport, the service passport (for officials/special), the business passport and the ordinary passport. (2) the applicant is to fill in the Application Form for Aliens to Get Visa and Residence Permit and submit two recent photos of half the front body without the cap. (3)the supporting documents in relation to the application of the visa and the residence permit.

Regulations on Taiwanese Applying for Stay and Temporary Residence

1. The target groups for temporary residence to be added: (1) Taiwanese who are staff members /the employees (including their spouses and children) with the Taiwanese-invested enterprises which invest in the Mainland in trade and with the Three-Type-Enterprises (i.e. the wholely foreign-invested enterprise, the Sino-foreign equity joint venture and the Sino-foreign contractual joint venture)and with the resident mission. (2)Taiwanese who are permitted to work in the Mainland. (3)Taiwanese who are permitted to stay for study and for advanced study. (4)Taiwanese who are married to the Mainland citizens and their offsprings. (5)Taiwanese juveniles who are entrusted to the care of the relatives in the Mainland. (6)Taiwanese who have purchased living quarters.

2. The documents to be submitted in applying for the temporary residence to be added: (1) the pass that is noted with the permission of to-and-from the Mainland for more than once. (2)the health certificate issued by the health inspection department. (3)the documents in relation to temporary residence: ① Taiwanese who are staff members/the employees with the Three-Type-Enterprises or with the resident missions may apply with their employment certificate or work contract. ② Taiwanese who are CEO/ legal person are exempt from the employment certificate but should provide the copies of Registration /Business License.

3. Applying for extended stay: Taiwan’s residents may apply twice for extended stay each time he is in the Mainland, with 3 valid months’ extension for every application. To such an end, they will just fill in Application Form of Extension and

Re-issuance of Certificate for Countryman in Hong Kong, Macao, Taiwan and Overseas Chinese. In the cases when they have to stay on due to illness or for other special reasons, the application is not limited to twice. But they will have to submit the related supporting documents: those who visit their relatives will submit the ID card, household register and the copies thereof of their relatives in IMAR; those who see the doctor Should submit the evidence supplied by the hospital; and those in exceptional cases will submit the evidence provided by their working places.

Application of Driving License

1.Those who hold overseas driving licenses, in applying the licenses in IMAR, will fill in the Application Form for Auto Driving License and submit the following documents and supporting materials: (1) ID card of the applicant (2) papers supplied by the medical body above the county level to prove their health conditions (3) the driving license held by the applicant. In the case when the language is not in Chinese, a translation into Chinese should be provided.

2.The personnel who hold overseas driving licenses but work in the foreign embassies, consuls and international resident

missions in China will fill in the Application Form for Auto Driving License and submit the following documents and supporting materials: (1) ID card of the applicant (2) the driving license held by the applicant. In the case when the language is not in Chinese, a translation into Chinese need to be provided.

3.The driving test management center shall accept the applications which have met the relevant requirements and arrange for the applicants to enter for the tests within 30 days after the appointment with the applicants.

4.The applicant shall get the driving license when he/she has passed the test.

(v) Reference Prices of Basic Elements

Reference Prices of Production Essentials in IMAR in 2005


Negotiated Minimum Sales Prices for the Use of State-owned Land in 12 Leagues/Cities in IMAR


IV. Development Zones

(i) National-level Development Zones

Hohhot Eco-Tech Development Zone

As a national-level development zone approved by the State Council in July 2000,it is composed of the Ruyi Ecotech Development Zone and the Jinchuan Eco-Tech Development Zone. In 2005 the Zone achieved 0.16 billion yuan in infrastructure construction, 18.63 billion yuan in gross industrial value, 1.02 billion yuan in financial income and 5.99 billion yuan in industry-added value. It approved the establishment of 8 foreign-invested enterprises there, with actual utilization of foreign fund of $77.90 million and foreign exchange earning by exporting of $41.678 million.

Hohhot Export-Processing Zone

Approved to be set up by the State Council on 21st June. 2002, it is located in Hohhot Eco-Tech Development Zone (Jinchuan Zone) and has a planned area of 2.21 sq. km. The Zone consists of the processing part, the supervision and goods-storage part, management and service part and public facility part. The Zone introduces totally-enclosed management and adopts the mode of cargo going through the Customs procedures by Declaring, Examining the Documents and Checking the Shipment for Only one Time, and provides 24-hour service for going through the Customs.

Baotou Rare Earth Hi-Tech Development Zone

Approved to be established by the State Council in November 1992, it is both the exclusive Hi-Tech zone at the national-level in IMAR and the sole zone with a technical title of Hi-Tech rare earth. It governs 49 sq. km with a planned area of 15.53 sq. km. In 2005 it achieved $ 9.016 million in infrastructure construction, 32.8 billion yuan in gross industrial value, 1.0 billion yuan in financial income and 10.5 billion yuan in industry-added value.

Manzhouli Frontier Eco-Coop Zone

It was approved to be set up by the State Council in 1992.The planned area has extended from 6.4 sq. km at the construction period to the present 38.31 sq. km, which consists of industrial-processing part, commercial part, residential part and administrative part. Wood-processing is the leading and featured industry. Such major industries as building materials, food making, logistics, municipal infrastructure construction and export-processing, etc. have been formed gradually. In 2005 it achieved 1.18 million yuan in gross output value, 0.88 billion yuan in gross industrial value and 0.26 billion yuan in financial income.

Manzhouli Sino-Russia Mutual Trade Zone

Approved to be established by the State Council in November on 12th April.1992,it is situated in the western part of Manzhouli City. The Zone is made up of enclosed free trade part, commercial-trade-financial part, bonded & warehouse part, industrial tariff-free processing part and service-recreational part. The Enclosed Free Trade Zone got its independence on 18th January.1996.

Erlianhaot Frontier Eco-Coop Zone

Approved to be established by the State Council in 1993 and with a planned area of 14 sq. km, it is made up of export-processing part and land port processing part. Currently the Zone has made into a industrial system of such major industries as wood-processing, mineral-processing, construction industry and processing of building materials with 52 enterprises in it.


(ii) Some of the IMAR-level Development Zones




(iii) Relevant Authorities





(iv) Relevant Websites

Appendix

Major Hotels and Guest Houses

There are 202 star-level hotels and restaurants in IMAR, of which there are three 5-starlevel, eight 4-star-level and forty-eight 3-star-level hotels.




Inquiry and Emergency Phones

(Ministry of Commerce)

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