223.19 billion yuan (2002)
GDP growth rate: 8.1 percent
Average GDP per capita: 5,178 yuan (2002)
GDP ratio (1st, 2nd and tertiary industries): 21.1 : 42.8 : 36.1
Industrial added value: 77.8 billion yuan in 2002, up by 9.2% over the previous year
Revenue: 20.67 billion yuan (2002)
has trade contacts with more than 70 countries and regions in the world. It mainly exports tobacco, machinery and electrical equipment, chemical and agricultural products and non-ferrous metals. In 2002 its total imports and exports reached US$2.23 billion.
In 2002, the province signed direct foreign investment contracts involving US$333 million. US$112 million were actually utilized during the year.
Four pillar industries involve tobacco, biology, mining and tourism.
Unemployment rate: 4% (2002)
Poverty alleviation planYunnan
is one of China's undeveloped provinces with more poverty-stricken counties than other province. In 1994, about 7 million people lived below the poverty line of less than an annual average income of 300 yuan per capita. They were distributed in the province's 73 counties mainly and financially supported by the central government.
With an input of 3.15 billion yuan in 2002, the absolutely poor rural Population
in the province has been reduced from 4.05 million in 2000 to 2.86 million.
The poverty alleviation plan includes five large projects aimed at improving infrastructure facilities. They involve soil improvement and water conservation, electric power, roads and "green belt" building. Upon the completion of the projects, the province will solve the problem of shortages of grain, water, electric power and roads and improve ecological conditions.
According to the Provisional Regulations on the Guidance of Foreign Investment and the Guiding Catalogue of Industries for Foreign Investment promulgated by the State Council, together with the actual needs for development, Yunnan
Province especially encourages foreign investment in the following sectors:
1. Construction and operation of local railways and connecting bridges and tunnels (solely foreign-funded is not allowed).
2. Construction and operation of highways, independent bridges and tunnels, and port facilities (in public ports, government capital must hold a dominant share);
3. Construction and operation of civil aviation airports (the Chinese part must have a majority share or take a dominant position).
4. Construction and operation of hydropower stations.
5. Construction and operation of thermal power stations with a capacity of 300,000 kw or over for each generating unit.
B. Development of agricultural and biological resources
1. Tissue culturing, cultivation, preservation and processing of particular flowers and plants species.
2. Cultivation and processing of tropical cash crops.
3. Introduction of improved varieties of commercially valuable plants and fruit trees from tropical, subtropical and temperate zones. Establishing nursery, plantation, processing and developing technology for transporting perishable produce.
4. Cultivation and processing of natural perfumes.
5. Cultivation and processing of edible mushrooms.
6. Development of animal by-products (breeding, raising, slaughtering and processing of meat animals; processing of dairy products; processing of animal offal and blood products for use in pharmaceuticals; leather and fur production.)
7. Development of selected commercially valuable crops and their application (functional enzymes, functional proteins, pharmaceuticals from medicinal herbs, comprehensive development of castor and palm products).
C. Development of mineral resources
1. High-density phosphorous compound fertilizers, food and feed additives, fire retardant, phosphate and phosphoric chemicals.
2. Iron and steel industry.
(1) mining and dressing of iron ores;
(2) mining, dressing, smelting and intensive processing of manganese ores;
(3) smelting of stainless steel;
(4) cold-rolled silicon steel sheets, galvanized sheets and tin-plated sheets, cold-rolled sheets and hot-rolled sheets;
(5) production of iron by direct reduction and molten reduction methods.
3. Non-ferrous metal industry.
(1) mono-crystalline silicon and polycrystalline silicon;
(2) hard alloys, tin compounds, antimony compounds;
(3) nonferrous composites, new alloys;
(4) mining of copper, lead and zinc ores (solely foreign-funded is not allowed);
(5) mining of aluminum ore (solely foreign-funded is not allowed), production of over 300,000 tons of aluminum annually.
4. Risk exploration for mineral resources.
5. Manufacture of building materials and nonmetal products.
(1) new types of building materials;
(2) technology for intensive plate glass processing;
(3) inorganic nonmetallic materials and related products (quartz glass, artificial crystal);
(4) mining and processing of natural stone outside the government protected areas;
(5) production of cement by the dry revolving kiln process (over 4000 tons daily).
D. Development of tourism resources
1. Development of national and provincial tourist destinations and scenic spots, including the construction of related facilities.
2. Construction of recreational facilities in vacation zones.
E. Hi-technology industry
1. Expansion and industrialization of high technology.
2. Upgrading of traditional industries using high technology focusing on electronics and machinery, biological pharmacy, food processing, metallurgical and chemical industries. Main items involved include: digitally controlled machine tools for export, electrical products, electronic devices for banding and commerce systems, electronic components. Upgrading of processing in sugar refineries and sugar produces, paper products, optical products, tire and rubber products, improved building materials, glassware, down stream timber processing.
F. Environmental protection
1. Recycling industrial waste such as gases, water processing residues.
2. Manufacturing of equipment to improve urban sanitation.
3. Improvement of the ecological environment and any related construction projects.
4. Engineering and technology for pollution treatment and the introduction of pollution control measures.
1. Foreign-funded enterprises concerned with energy, communication, water conservancy, environmental protection, agriculture, forestry, animal husbandry and other related industries with terms of operation longer than 10 years will be exempt from corporate tax for 2 years starting from the first profit-making year. These enterprises will receive a full tax rebate from local financial departments for the third, fourth and fifth years of operation.
2. Foreign-funded enterprises approved as high-tech enterprises with terms of operation longer than 10 years will be exempt from corporate tax from the first to second profit-making year. They will receive a full corporate tax rebate from local financial departments from the third to seventh year of operation. For the first three years of operation, the proportion of VAT designated to the local financial departments will be rebated by these departments. Upon expiry of the above-mentioned preferential terms, favorable tax rates may still be obtained for enterprises which fulfill requirements of provincial tax departments.
3. Foreign-funded enterprises involved in energy, communication, environmental protection and urban public utilities whose actual investment exceeds US$10 million will have the proportion of their VAT designated for the local financial departments rebated for the first 3 years of operation upon approval.
4. For foreign-funded enterprises reinvesting their profits in the province and their term of operation longer than 5 years, local financial departments will rebate corporate tax according to the amount reinvested.
5. Foreign funded enterprises engaged in agricultural projects by using non-cultivated land will be exempt from agriculture tax for the first three years. In the 4th and 5th years, the above taxes paid will be rebated by local financial departments.
6. Foreign-funded enterprises will be given priority in the allocation of land-use rights. Allocation of these rights will be at the same price level for all enterprises (domestic or foreign). Arrangements can be made to pay by installments if necessary. When foreign-funded enterprises invest in residential houses, they may sell 30 percent of the floor area at commercial housing price.