FUJIAN, CHINA — China hopes its historic links with Thailand and other Southeast Asian countries will draw the attention of their investors to a new free trade area in Fujian province.
The Pingtan special economic zone on Pingtan island off the Chinese coast was built mainly to entice Taiwanese investments to the southeastern coastal province of Fujian. But a senior official in charge of the project said the site also had other goals beyond fortering economic ties across the Taiwan Strait.
Fang Ming, vice-director in charge of foreign affairs and overseas Chinese affairs for the zone, said investors from Thailand and other Asean countries were also being sought. The strong historical ties between Fujian and Southeast Asia would be the key to capturing the interest of investors from the neighbouring countries, he added.
Southeast Asia has 12 million people who can trace their origin back to Fujian. In Thailand, most of them live in the southern provinces including Phuket and Songkhla.
Foreign investors can enjoy incentives when setting up factories in Pingtan, including a 15% corporate income tax rate compared with 25% outside the zone, he said.
China hopes to see bustling trade and investment activity on Pingtan island in Fujian province once more investors arrive. (Photo by Saritdet Marukatat)
With Taiwan only 120 kilometres away across the strait, Pingtan was inaugurated this year to persuade Taiwanese to relocate or set up new businesses there. So far 385 investors from Taiwan have come to the zone. Other early investors include Chinese from Canada and Australia, according to Mr Fang.
The construction of the zone is ongoing and due to be fully completed in 2030. By that time it will be a fully fledged community with a university, schools, an entertainment complex, residential areas and even developed tourist spots covering 324 square kilometres of the island.
The official said foreign investors, including those from Thailand, could tap into potential benefits from sectors that the Chinese government has identified as priorities, including tourism and marine products.
Pingtan is a pet project of Chinese President Xi Jinping, who was the governor of Fujian from 1999 to 2002. The special economic zone is located about 120 kilometres from Fuzhou, the provincial capital.