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A snapshot


Aptly known as the Phoenix city, Yinchuan is a city that is gradually rising into economic prominence. Located in the North West of China in the Ningxia Hui autonomous region, a third of Niangxia’s population is Muslim, compared to the national average of 1.8% in 2010. In recent years, Ningxia has been the centre of a government campaign to promote Arab investment there, resulting in promising investments and high tech development on top of the existing coal and mineral industries.


Province: Ningxia Hui autonomous region, North West China

Population: 2 million (3 million including those without residence permits)

Average residential cost: 5000RMB/sqm

Key Industries: Coal, metallurgy, Chemical manufacture, Agriculture, High-tech industry.

Provincial Government website:



Development zones


Yinchuan Economic and Technological Development Zone (YETDZ), established in 2001 is home to over 2000 enterprises, focussing on pioneering high tech progression and information industry developments to modernise existing industries. The development forms part of the national ‘Go West’ development programme (西部大开发) designed to increase the infrastructure and industrial output of inland China. The area is rated a BB standard development zone indicating the area is still in the development stage. Within the development zone are 4 sections: the Overseas Returnees Pioneering Park, the Ningxia Software Park, the Ningxia SMEs Pioneering Park and the Ningxia High- and New-Tech Pioneering Service Center.




In 2012 Yinchuan was also designated as an Inland Opening-Up Economic pilot zone. Given that Muslims make up one third of the Ningxia population, in 2013, the China-Arab States Expo was help in Yinchuan, and the government has invested in developing this area as a hub for trade between China and Arab states. This drive has resulted in rapid increase in foreign investment and trade, in 2013 the total foreign trade in Yinchuan amounted to US$2.41 billion, up 80.9% year from 2012, and 2013 Utilised FDI in Yinchuan stood at $129 million. The gross industrial output value of the zone reached RMB 23.5 billion in 2012.




In 2012 construction was begun on a new CBD in Yinchuan, with around CNY 800 million invested in the project in that year. Named the Yue Haiwan CBD, it will complement the existing development parks and forge the way for further investment and development, with a view to being specially aimed at Arab investors. In mid 2013, the CBD development had already attracted 24 projects with a total investment of 17.9 billion yuan. While Yinchuan’s existing CBD is mostly empty, the imminent opening of the new project should create a thriving hub in the heart of the city.



Key industries


Aside from the development zone, Yinchuan has a strong infrastructure of existing industries contributing to the city’s GDP of RMB 127.35 billion in 2013, up 10% from 2012 and accounting for approximately 49.6% of Ningxia’s total. In an area rich in energy and mineral reserves, the energy industry is a key source of income to the area. 9 out of 10 Chinese national coal companies have bases in Yinchuan and Yinchuan is also a centre for petroleum processing and chemical manufacture. This heavy industry realised RMB 41.26 billion in 2013, up 12.5% from a year earlier.


Yinchuan is also a hub for certain agricultural industries. It is a designated national centre for beef and mutton imports, hosting the International Beef and Mutton Industry Development Forum in 2014. Yinchuan is also the most prolific area in China for the production of Chinese wolfberry products (also known as goji berries).


Logistics hub


Located on the end of the new Silk Road and near the Yellow river, Yinchuan has become a logistics hub both for land transport into and out of China and for transport between the East and West of Hina itself. By the end of 2015, Yinchuan will be linked to the high speed rail network, further improving its transport links. The main existing railway connections are the Baotou-Lanzhou railway and Baoji-Zhongwei railway, with an average 15 hour journey from Yinchuan to Beijing.


Foreign Investment preferential policies


Article 1: All the natural resources, industries, and marketsin Ningxia except those especially stipulated by the state are open to the whole country. State-owned, collective-owned, private-operated, the three types of enterprises, businessmen working on their own, colleges, universities, and research institutes in and outside of Ningxia are welcome to carry out multi-level, multi-form, multi-factor economic and technological cooperation or run enterprises with investment of their tangible and intangible assets. The autonomous region shall render prompt, satisfactory service in registration, approval of the establishment of projects, and the creation of necessary conditions.


Article 2: Productive enterprises with exclusive foreign investment (including bases established for the production of raw materials) may enjoy exemption from the income tax for five years upon the commission of the enterprises and a refund of 25 percent of the value-added tax, urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, and house tax within a period of five years after the enterprises are in operation. They shall be exempt from the tax for the use of land during the period of construction and for another five years after they are in operation. Enterprises engaged in the development of resources shall be entitled to a refund of the resource tax for three to five years and exemption from the additional fees of the circulation tax. The income of the enterprises during the income-tax exemption period shall be regarded as duty-paid. After the expiration of tax exemption, proper tax reduction shall be granted to the enterprises which have difficulties in operation or need a large amount of investment for technical renovations and expansions. Preferential policies can be liberalized to a proper extent in Taole County and the eight counties in the mountain area of southern Ningxia.


Article 3: Productive joint ventures and cooperative enterprises newly established in Ningxia as well as key extension projects approved by the state and autonomous region with the amount of investment by outside partners accounting for more than 25 percent of the total investment and the term of joint venture and cooperation more than ten years may enjoy a three-five years’ exemption of the income tax for the newly-added economic result in accordance with the ratio of investment by the outside partners, a 25 percent refund of the value-added tax and a 50 percent refund of the urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, tax for land-use, and house tax for five years. They shall also be entitled to exemption from the additional fees of the circulation tax as stipulated by the government of the autonomous region. During the tax exemption and reduction period, the profits distributed to them shall be regarded as duty-paid. Preferential policies may be liberalized in the eight counties in the southern mountain area and Taole County to a proper extent.


Article 4: Ventures with exclusive foreign investment and cooperative enterprises (with outside partner’s investment more than 500,000 yuan and the term of cooperation longer than five years) in tertiary industry (not including the development of real estate, recreational businesses, catering industry, and hotel industry) shall be entitled to a 3-4 years’ exemption from the income tax, a 1-2 years’ refund of the business tax, a three years’ refund of 50 percent of the urban construction and maintenance tax, tax regulating the orientation of investment of fixed assets, tax for land-use, and house tax.


Article 5: Ventures with exclusive foreign investment, joint ventures, and cooperative enterprises established in the autonomous region may enjoy a 30-50 percent discount of the fixed land price for using cultivated land upon approval by the government. They shall be allowed to transfer the right for the use of land after five years of operation.


Article 6: Those engaged in the development of agriculture, forestry, animal husbandry, and fishery shall be exempt from the agricultural tax and tax for special agricultural and forestry products for six years from the year they begin to make profit. Those engaged in the development of poverty-relief projects in the eight counties in the mountain area and Taole County shall be exempt from the agricultural tax and tax for special agricultural and forestry products for ten years. The wasteland they need can be provided by means of assignment.


Article 7: Ventures exclusively with one’s own investment and proprietary cooperative enterprises engaged in highly-processing agricultural resources and the amount of investment surpassing two million yuan shall be exempt from the income tax for eight years beginning with the year they are in operation. Those with investment surpassing five million yuan may enjoy income-tax exemption for ten years beginning with the year of operation.




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