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Chinanews, Tianjin, Nov. 26 – China encourages some domestic commercial banks and foreign banks in the eastern area's cities to set up branches in the western region.
The information was released by the Office for the Promotion1 on Development of the Western Region under the State Council at a meeting held in Tianjin last Friday. At the meeting, the State Council office said that financial institutions should provide loans to companies which were headquartered in China's east region yet had some investment projects in the western region. China aims to narrow the development imbalance between the east and west by promoting more cooperative projects in the two regions. At present, many of these projects are carried out based on a win-win situation, while in the past, such cooperation was usually carried out in the form of donations by companies in the east region. Compared with the east region, the west region lags behind in its economic development. So the Chinese government plans to boost development in the west region by offering more preferential policies. Chinese government recently said that for companies that make investment in the west region in fields that are in conformity2 with the state's programming plan and standard such as in fields of exploitation of energy, chemical resources or important mineral resources, the processing of agricultural products, manufacturing, high-tech3 and tourism – if they are in the same condition as other companies, these companies will enjoy some preferential support offered by the government. The government will guarantee the land they need for construction purpose. Investment projects that can enjoy loan preferential policies or receive subsidies4 from the state, should be approved ahead of other projects. Some officials suggested to set up a special fund for use to help companies in the east region to make investment in the west. Chinese government has always hoped that more companies in the east region can make their investment in the west and thus boost the economic development in the west region. The government has taken measures to realize this goal and these measures have started to take effect. Information shows that since 2006, the number of companies that have moved to the west from the east for making investment activities have increased by 100,000. The total investment of these companies has reached over 700 billion yuan, to equal the total investment of the previous five years.
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