China intensifies economic, trade cooperation with Laos and region
China intensifies economic, trade cooperation with Laos and region
China's preparations are progressing well toward establishing a multibillion US dollar Mengla Economic Cooperation Zone in Yunnan province near the Lao border.
The Chinese government announced at the end of last year it would invest US$31.4 billion in the pilot project in Xishuangbanna - an autonomous prefecture of Yunnan, China's gateway to Southeast Asian countries.
The mega project is scheduled to be realised by 2025, Mengla district official in charge of the project Mr Cang Shan En told Lao and Chinese media during a recent press tour to the prefecture organised by Yunnan Daily Press Group.
A detailed concept of the project has been submitted to the provincial government for consideration and approval. Investment enticements such as tax incentives are expected to be introduced to lure investor capital to establish business operations in the zone.
Investment in the zone will include various industries, trading, and import - export businesses. It was reported previously that the 4,500-sq-km zone was set to welcome investment projects in areas such as transportation, education and energy.
Numerous infrastructure projects including an airport and highways will be developed to supplement the existing transportation system to meet the growing needs of freight and passenger transport, especially once the pilot project is realised.
In addition, Mongma border checkpoint where China's Mengla and Laos' Sing district in Luang Namtha province meets is being built to promote greater cooperation in trade and investment between the neighbouring countries.
“The border gate will be a convenient trade route from China to Myanmar via Laos,” Mr Cang Shan En said through an interpreter.
The pilot project, once operational, will supplement the Chinese government's ongoing efforts to intensify economic cooperation with countries in the region.
Established in September last year by the governments of Laos and China, the economic cooperation zone at the Yunna's Mohan – Luang Namtha's Boten border area has lured registered capital of more than 100 billion yuan via tax exemptions.
Businesses have said the tax exemption provided an incentive for investment and made their products more competitive.
“I don't have to pay tax when exporting my products to neighbouring co untries like Thailand,” said Mr Zeng Li, a representative of the Tian Xin Import-Export Company, who has invested in the Boten Specific Economic Zone in Luang Namtha province, which is part of the Mohan-Boten economic cooperation zone.
Congested by increasing numbers of trucks and passengers at the Mohan-Boten border gate, Lao and Chinese authorities are constructing a goods transport lane to ease the bottleneck at the gate, with many trucks en-route to Thailand via Laos.
Statistics provided by the Yunnan Xishuangbanna Mohan Economic Development Zone showed on average that as many as 3,100 people and 1,200 vehicles cross through the border gate daily.
A r epresentative from Cheng Long International Transport Company Li Sia Long said shipping goods through the Mohan-Boten trade route was more efficient as it takes fewer days by land transport from China to Thailand via Laos compared to shipments through sea routes. This was especially important for farm produce which requires on time delivery to ensure fruit was not wasted, he added.
Officials said transport via the water route of the Langcang-Mekong River also played an important part in boosting trade among the regional countries.
Businesses and officials said they believed once the planned railway linking China to Southeast Asian countries via Laos was complete, it would significantly boost trade and investment cooperation in the region.
