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Investments of $34b to help transform Jiangxi

By Ren Xiaojin and Wang Jian | China Daily | Updated: 2017-03-07 08:38

Total investments of 234 billion yuan ($34 billion)-to be injected into Jiangxi province by State-owned enterprises-will help significantly transform the local economy, senior government officials from the province said.

The huge amount of investment is the result of an initiative between Jiangxi provincial government and the State Council signed in 2013-to introduce more SOEs into Jiangxi.

The province is already on the move, being one of China's top 10 provincial regions with the fastest economic growth. Last year it posted GDP of 1.84 trillion yuan, with a growth rate of 9 percent year-on-year, compared with the mainland's overall economic growth of 6.7 percent.

At a recent investment fair held between the local government and the companies, 61 SOEs signed 113 major projects with the province for the total investment package.

The projects will mainly focus on emerging industries of strategic importance, spanning from the internet of things, information technology, advanced urban rail facilities to tourism.

"Jiangxi has unique advantages in location, industry, policy and environment," said Lu Xinshe, the Party chief of Jiangxi province.

He said these advantages had laid the foundations for increased investment by the SOEs.

Jiangxi will benefit from their advanced technology and modern management, while the companies could expand their markets and have access to more natural resources in Jiangxi, he added.

Jiangxi Governor Liu Qi said that the minerals-rich province would further welcome more projects by SOEs investing in such areas as rare metals, mineral resources and the media industry.

"We hope to enhance industrial upgrading and the reconstruction of State-owned enterprises," Liu said.

Liu said SOEs would be encouraged to build more high-tech research and development centers.

The projects confirmed in the fair included big investments to build power plants.

Chen Jinxing, CEO of China Datang Group-one of the nation's big five State-owned power producers-said his group had big plans for the region.

He said it would invest 30 billion yuan during the 13th Five-Year Plan (2016-20) to build two 1 million kilowatts capacity power plants.

The group also vowed to develop local renewable energy, such as wind power.

Elsewhere, China Shenhua Group-the top State-owned mining and energy company-said it was also investing 5 billion yuan in two power plants with installed capacity of 660,000 kilowatts each.

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