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5 White Paper on the Business Environment in China

3.4 Guangxi Zhuang Autonomous Region

Link to South Asia city of Wuzhou. e province’s heavy industries include iron,
cement- and steelworks in Liuzhou, as well as machinery
As the only province of China with both land and water production in Nanning and Wuzhou. Pinyang produces
connections to Southeast Asia, Guangxi’s position was ceramics, fans, felt caps, copperware, combs, brushes and
signi cantly enhanced by the inauguration of the China- straw bonnets.
ASEAN Free Trade Area in early 2010. e province borders
Vietnam to the west and is connected to Hong Kong and In January 2012, Sinopec opened a renovated re nery in
Macau by the Xi River. Cross-border, small-value trade with the coastal city of Beihai. e new facility can re ne 100,000
Vietnam accounted for around 40 percent of Guangxi’s total barrels per day, and is integrated with a 200,000 ton-per-year
exports in 2013. polypropylene unit for producing plastics.

e provincial capital of Nanning in particular plays a key Spotlight on Development Zones
role in China-ASEAN relations. e city is the permanent Guangxi is also home to new high-tech development zones
home of the annual China-ASEAN Expo and the China-
ASEAN Economic Park, a provincial-level park based in the aimed at attracting investors in the logistics, bio-engineering,
Nanning Overseas Chinese Investment Zone, which aims to IT, electronic components and shipping industries. e
enhance cooperation between the region and the ASEAN Nanning-Guizhou-Kunming Economic Belt and the Beibu
countries. Gulf Economic Zone are being constructed and e orts are
being taken to enhance the cooperation with Taiwan and
Economy other areas in and outside of Guangxi. At present, over 3,000
companies have settled into Guangxi’s 37 industrial parks,
Guangxi is home to many ethnic minority groups and including China Petroleum, SDIC Power Holdings, Sinar
its economy is based on agriculture and tourism (especially Mas Group of Indonesia, Noble Group of Singapore, China
the city of Guilin, known for its proximity to the Lijiang National Cereals, Oils and Foodstu s Corporation (COFCO)
River and Karst Peaks). Key agricultural products include and Coca Cola.
sugarcane, of which Guangxi is the leading producer in
China, and silk-worm products. Major grain crops include e High-Tech Industrial Development Zones of
rice, maize, wheat and sweet potatoes. Leading commercial Nanning, Liuzhou, Qinzhou, Guilin, and Yuchai all created
crops include peanuts, sesame, ramie, tobacco, tea, cotton, an industrial output value over RMB10 billion in 2011. In
and indigo. Guangxi is also a major producer of fruit: most addition to industrial output value, the development zones
notably pomelos, tangerines, mandarin oranges, lemons, are a key source of jobs in the province. e province’s
lychee, pears, papayas, bananas and pineapples. e region’s industrial zones have been developing their industrial cluster
timber (sandalwood and cork) and shing industries are both according to the area characteristics. For example, the coastal
important contributors to the local economy. areas of Qinzhou, Beihai and Fangcheng are now focused on
petrochemicals, power plants, manganese steel, sugar, and
e province is also known for its wide variety of minerals high-tech products.
and metals, and its aluminum processing industry. In 2011,
Guangxi launched a new materials research and development E orts have been made by the local government to increase
center, investing RMB30 million in R&D for new metallic both foreign- and domestic investment in the region. Global
materials, the comprehensive utilization of low-quality iron companies like Toyota, General Motors, NEC and IBM have
resources, and laterite-nickel ore. all made investments in Guangxi. Many large enterprises
have established regional headquarters in the city since July
Food processing, auto manufacturing, petrochemicals, 2010 (when incentives were introduced to encourage doing
power generation, nonferrous metals, metallurgy and so), including the brewer, Tsingtao, and household appliance
machinery are the seven key industries of Guangxi. In addition, maker, Haier.
building materials, pharmaceutics, textiles and garments,
shipbuilding, as well as the marine equipment manufacturing As part of the China-ASEAN framework, the Pan-Beibu
industries have grown rapidly in recent years. Pine resin is Gulf Economic Cooperation Zone comprises the Guangxi
notable as an export-oriented commodity produced in the Zhuang autonomous region, Guangdong and Hainan
provinces, Vietnam, Malaysia, Singapore, Indonesia, the
Philippines and Brunei.

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