National Strategy  Ningxia’s Mission

On Sep. 10, 2012, the State Council of China issued The Reply on the Plan of Ningxia Inland Opening-up Pilot Economic Zone (Guo Han [2012] No. 130), approving the establishment of inland opening-up pilot economic zone in Ningxia (the Zone) and giving a consent, in principle, to the Plan of Ningxia Inland Opening-up Pilot Economic Zone (the Plan). The facts mark Ningxia to be as much the first opening-up pilot zone among all inland provinces of China, as the only pilot zone including the entire province in China. The Zone covers an area of 66.4 thousand km2 and is the largest pilot zone national-wide. On the same day, the State Council of China approves Yinchuan Comprehensive Bonded Zone by official reply (Guo Han [2012 No. 131]). 

To establish the Zone bears great strategic significance. The Plan points out that to develop inland opening-up economy, adopted by the CPC Central Committee and State Council of China, is as much a major strategy amid deep changes of international political and economic situation, as an important approach to implement all-dimensional opening-up strategy and and a significant strategic mission to carry out the West Development Strategy. The Zone will construct a platform for westward opening-up, and reinforce all-round exchanges and cooperation in terms of economy, trade and trade between China and Arab States and the Islamic countries in the world. The Zone also helps to explore new path for inland opening-up, and establish mutually-complementary and inter-dependent strategic structure among the coastal areas, border areas and inland areas. It is conducive to bringing complementary advantages and expanding overseas market for China, good for using domestic and foreign resources and the two markets, and makes great contribution to national energy security. In addition, the Zone will be beneficial for changing approach of development in those natural resources-based regions for a new and sustained pattern. The Zone will promote trans-regional development for ethnic areas and improve the people’s life in a sustained manner, and secure unity, harmony and stability of ethnic areas. In a word, the Zone is a major strategy of the Nation.

The Zone is a strong support of the CPC Central Committee and the State Council of China to Ningxia, and also a great expectation on Ningxia people. Ningxia is now shouldering the historic mission of carrying out national strategy and developing inland opening-up pilot economic zone. In recent years, Ningxia has hosted three sessions of China-Arab State Economic and Trade Forum successfully. Ningxia University has founded the Faculty of Arab Study and Institute of Arab Study, the International Muslim Business City with considerable scale and Hui Culture Park are also built. Those major projects as World Muslim City, Hino International Health City and China Hetu Park have commenced. The projects above have laid solid foundation for development of the Zone. The people of Ningxia will be worthy of the great trust and definitely succeed. We will, in accordance with requirements of the State, establish the concept of overall perspective, increase the awareness of service, combine the advancement of opening-up and reinforcement of regional cooperation together, and implement the Plan in a sound way by working with other provinces, regions or municipalities, with a view to yielding fruitful results to the satisfactory of the CPC Central Committee and State Council of China.

Keep Clear-minded   Score Breakthrough in Major Fields

From the perspective of regional development, the Plan has divided into core development zone, radius zone of opening-up, demonstration zone of special agriculture and ecological shield zone, and differentiated instructions will apply for different categories. According to the Plan, development of the Zone consists of defining four strategic orientation, constructing three platforms, promoting opening-up and cooperation in five fields, implementing five missions and building eight bases.

Four strategic orientations refers to highland of national strategy of westward opening-up, an important national energy and chemical industry base, an important industry cluster of halal food and Muslim products and a pilot zone on industry transfer.

Three platforms refer to promoting regional economic cooperation on the platform of the Economic Zone along the Yellow River, expanding foreign exchanges and cooperation on the platform of China-Arabs States Expo, impelling export-orient economic development on the platform of comprehensive bonded zone.

Opening-up and cooperation in five fields refer to economic and trade cooperation, energy development cooperation, S&T and education cooperation, culture and tourist cooperation and investment and finance cooperation.

Five missions refer to innovating opening-up systems, establishing and developing the opening-up and cooperative system for special industries, advancing opening-up and cooperation in energy industry, improving the supportive capabilities for opening-up, constructing harmonious and stable society.

Eight Bases refer to national base for energy refinery, transfer and strategic reserve, industry cluster of halal food and Muslim products, production and processing base of special and competitive agricultural products, base of regional strategic emerging industries, an important logistics and transfer base on Euro-Asia Continental Bridge, base for industry transfer, an International tourist destination and Sino-Arab cooperation-oriented talent base.

In order to promote development of the Zone in an earnest manner, the Plan has proposed to reinforce the supportive capabilities from the following seven aspects. Firstly, to construct a comprehensive transportation system. Top priorities shall be given to development of those railways as Yinchuan-Xi’an Railway, Yinchuan-Lanzhou Double-Tracking Railways of Baotou-Lanzhou Railway, Baoji-Zhongwei Double-Tracking Railway, Zhongwei-Dingbian Section and Yinchuan-Dingbian Double-Tracking Railway of Taiyuan-Zhongwei (Yinchuan) Railway. The railway projects of connecting Yinchuan to Beijing, Xinjiang and eastern provinces shall be studied and planed. Those passenger-flights from Yinchuan to Dubai, Doha, Cairo and Kuala Lumpur will be opened and Yinchuan Airport will be upgraded into an important international airport in the west of China. Secondly, to tighten the efforts for development of water facilities. In compliance with the concept of water control in different areas, which means saving water in the north, diverting water to the middle and increasing water and tightening water use in the north, such a water resources allocation and adjustment system will be established, in which the water is allocated in a scientific manner, water in urban and rural areas are used in a balanced manner and the dry and flood seasons will have water resources mutually supplemented. Strengthened efforts must be made for those key water projects, which bear great significance on long-term interests of Ningxia, and development projects of Heishanxia section of the Yellow and Daliushu Hydro-junction Project shall have its before-construction preparation carried out in an earnest manner. Thirdly, to tighten the ecological development and environment protection. Top priorities shall be given to the establishment of strategic structure of ecological security, consisting of ecological shields of Liupan Mountains watershed site rehabilitation and soil erosion prevention and Helan Mountains wind and sand prevention, desert control and prevention belt in the middle of Ningxia and oasis-based ecological belt in Ningxia plain. Then, an important ecological shield in western China will be developed. Fourthly, to improve the application of information technology for promotion of integration of three networks. Those new generation of information technologies as Internet of things and cloud computing shall be adopted. The development of information platform shall be accelerated for advanced inter-connection, information share and coordinated business. Fifthly, to push forward city cluster along the Yellow River. Yinchuan CBC, Yinchuan Comprehensive Bonded Zone, Shizuishan Land Port Economic Zone, Zhongwei Comprehensive Logistics Zone, Yongning Culture, Tourist, Health and Recreation Industry Park shall be attached with the top priority. The International Healthy City shall be planed and constructed in an earnest manner. Sixthly, development of S&T innovation system shall be accelerated, and such S&T innovation system shall be constructed, which is oriented for the market, takes enterprises as the main body and integrates production and R&D, with a view to achieving an closely combined development of S&T and economic society. Seventhly, to attract and cultivate talents with international perspective. The Zone will develop a major training base of Arabic language talent and exchange center for medical and technical talents exchange oriented for Arab States and Islamic countries in the world. The working system on talent shall be innovated and incentive policies on talent’s flow to the Zone shall be made.

Innovation of Policies  Pioneer on a Pilot Basis

The Plan stresses that development of the Zone shall be led by innovation of systems and puts forward ten major systems, which include foreign exchange and cooperation system, customs clearance system, guiding system of industrial structure upgrading, optimized development system for energy and chemical industry, accelerated development system for strategic emerging industries, intensified development system of special and competitive agriculture, combined development system for halal food and Muslim products industries, coordinated development system for modern service industry, integrated development system for culture and tourist industry and poverty-alleviation and development system. 

The Plan clearly points out that the Zone shall have its function of comprehensive platform fully played, innovate the systems, encourage the pioneering work on a pilot basis, adopt flexible opening-up policies and vigorously explore more pragmatic approach of cooperation. Those efforts have opened a broad space for the Zone’s development on policies innovation, and also provide strong policy-based support for the Zone to undertake the national strategy. In the meanwhile, the State Government has offered the Zone some concrete incentive policies, including the four aspects as follows.

With respect to policies on finance and taxation, the balanced transfer payment shall be improved in the Zone. Subsidized interest policy shall apply for the halal food and Muslim products companies in the poverty-stricken areas of the Zone, which conform to the requirements.

With respect to policies on finance, innovation of financial products and service shall be instructed and encouraged. Various financial organizations from both home and abroad shall be ushered into the Zone and local companies of Ningxia shall be encouraged to participate in national pilot business on financial innovation. The approach of land-based mortgage for desert control and prevention and restoring the cultivated land into grassland and forest shall be studied and constructed.

With respect to land policy, pilot projects on comprehensive land management reform, construction land licensing reform and development of unused land as hilly land, slope and barren land, shall be carried out. The land quota for the Zone shall be increased soundly. 

With respect to other policies, the State will support development of those major infrastructure facilities and increase investment in those projects on railway, expressway, civil aviation and water conservancy. Ningxia is supported to establish stock airline company, and Yinchuan will be listed as the pilot zone of the fifth freedom of the air. Measures on facilitating various personnel’s entry and exit in the Zone shall be studied. 

Grasp the Opportunity  Speed up Development

The Plan requires the Government of Ningxia Hui Autonomous Region to reinforce leadership and take the responsibility of implementing the Plan. Implementing systems shall be established, and all strategic missions set in the Plan must be carried out in an all round way, and construction of the Zone shall be implemented earnestly. Both CPC Ningxia Committee and Ningxia Government have attached great significance to implementation of the Plan, and will, by well organization and balanced approach, try the utmost efforts for development of the Zone. Recently, the Meeting of Commencement of Pilot Economic Zone and Comprehensive Bonded Zone has been convened, and regional-wide mobilization and overall work arrangement have been made. It is advised that China-Arab Expo shall play the central role in buildup of a comprehensive exhibition of world influence. The comprehensive bonded zone will play the role of platform in buildup of Ningxia Gateway facilitating Sino-Arab exchanges. On the basis of major projects, foundation of inland opening-up shall be further consolidated. Development of industries shall, as the foundation, impel upgrading and transformation of economic structure. The inland opening-up and exchange shall be further improved, aiming at cooperation and win-win result. The inland opening-up and development shall be instilled with fresh momentum by means of innovation of systems. The Meeting also requires the efforts shall be made to grasp the opportunity, uphold innovation, take active measures, carry out mach-making vigorously, clearly define responsibilities and improve the efficiency, with a view to initiating a new upsurge of development of the Zone.

At present, Ningxia Government set up the Leading Group on Development of Pilot Economic Zone, and Management Committee of Bonded Zone is also established in Yinchuan. It is planned to invite some experts, who are familiar with international rules and the situations of both China and Ningxia, in particularly familiar with the situation of Middle East and Middle Asia. They are expected to conduct study, plan and top design of the Zone. In the meanwhile, efforts have been made to study and formulate the general work plan on development of the Zone, and select some major projects, which bear great significance on the long-term development of the Zone. In addition, study will be carried out on reform in key areas and major components, construction of the Zone shall be carried out vigorously and in a sound manner.

As development of the Zone is such a mission of honor and huge responsibility, CPC Ningxia Committee and Ningxia Government is determined, under the strong leadership of CPC Central Committee with Xi Jinping as General Secretary, to be guided by the scientific outlook on development , unite the entire Ningxia people of all ethnic groups, study the documents of The 18th National Congress of the Communist Party of China, by upholding the initiative concept, earnest way of working and enhanced confidence, determination, courage and perseverance, implement the tasks set in the Plan in a all-round manner and carry out construction of the Zone earnestly. We will also try to set up new platforms, open new paths and innovate systems, with a view to making due contribution to establishment of China’s new west-ward opening-up structure.