25 of China's centrally administered state-owned enterprises (SOEs) plan to increase their investments in Xinjiang, estimated at approximately 939.571 billion yuan (about 129.6 billion U.S. dollars).
At a conference on promoting Xinjiang's industry, organized by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) in the Ili Kazakh Autonomous Prefecture of Xinjiang Uygur Autonomous Region, northwest China, the SOEs signed 183 letters of intent for cooperation programs.
Of these, 25 involve investments exceeding ten billion yuan (approximately 1.38 billion U.S. dollars).
The projects cover key industries, such as gas and oil production and refining, new energy, infrastructure, and hospitality.
"The next step is to focus on Xinjiang's eight key industrial clusters and plan and implement a series of practical, reciprocal, stimulating, and sustainable projects. Central SOEs should adapt to local conditions in Xinjiang and promote new quality productive forces, thereby contributing to the development of a modern industrial system," said Zhang Yuzhuo, the chairman of SASAC.
Investing in Xinjiang will stimulate the local economy and benefit the state-owned enterprises (SOEs). By the end of 2023, central SOEs had established 2,552 branches in Xinjiang, with investments totaling 2.47 trillion yuan (about 340 billion U.S. dollars), and initiated over 52,000 cooperative projects.
Chinese SOEs to make major investments in Xinjiang
Governments at all levels across China are promoting consumer goods trade-ins and industrial equipment upgrade with preferential policies and subsidies, bringing about significant growth in home appliance sales and equipment production. So far this year, the trade-in policies have brought a total sale of one trillion yuan (about 137 billion U.S. dollars) nationwide, and boosted production of trade-in-related goods like new energy vehicles (NEVs) and home-use freezers.
In Shanghai, in addition to the eight categories of nationwide subsidized products, like refrigerators, television sets, and computers, the local government introduced extra subsidies for additional home appliances, as well as interior materials, furniture, elderly-friendly products, and more to meet local needs.
According to statistics, Shanghai's trade-ins of home appliances have exceeded 6.4 million times, boosting trade of the eight categories by 30 to 40 percent compared to last year's statistics, and the total sales of home appliances on all platforms exceeded 10 billion yuan (about 1.37 billion U.S. dollars).
In central China's Hubei Province, the local government is providing subsidies unlimited times for passenger vehicles trade-ins, expanding subsidized kitchen and bathroom appliances, and involving interior goods and materials to the list, benefiting consumers in over 4.5 million transactions and bringing a total sale of 50 billion yuan (about 6.8 billion U.S. dollars).
In the first three quarters, industrial equipment upgrade policies have stimulated investments in equipment and tools, featuring a 16.4 percent year-on-year increase, with food manufacturing, agricultural products processing, and metal smelting equipment production increasing by 38.1 percent, 34.6 percent, and 13.2 percent, respectively.
In addition to consumer goods, governments at all levels have been actively offering allowances and providing guidance for companies to upgrade appliances and technologies to facilitate domestic consumption "We have applied for nearly 50 million yuan (about 6.8 million U.S. dollars) funding for equipment upgrades. With active advertising and mobilization, we encouraged local advantageous companies in machinery and medicine and health to apply, and provide guidance for them on company digitalization and technology upgrade," said Yu Biao, deputy director of the Development and Reform Bureau of Xinchang County in Shaoxing City of east China's Zhejiang Province.
Companies are also benefiting from the policy, and many are pursuing expansion with government allowances.
"We have benefited from the 'one-time pre-tax deduction policy for equipment and tools under 5 million yuan (about 680,000 U.S. dollars)' and reinvested additional funds for the Phase II expansion. As a result, the annual processing capacity has increased from 80,000 tonnes to 130,000 tonnes," said Tang Kaibo, general manager of Liaoning Lvyuan Renewable Energy Development Co., Ltd.
Local governments promote trade-ins, equipment upgrade with policies, subsidies
