China utilizes Nanning for trade with ASEAN

The following is the first article in the second series on the Second China-ASEAN Expo held from Oct. 19 to Oct. 22 in Nanning in the southwestern autonomous region of Guangxi, China. The Jakarta Post's Harry Bhaskara attended the expo at the invitation of the expo secretariat.

A whole city has sprung to life as a result of deepening trade relations between China and the Association of Southeast Asian Nations (ASEAN).

"When I came here four years ago for a visit, there was nothing but fields," said an American who has lived in Nanning for the last two years.

"Now you can see for yourself," he said indicating the city's ubiquitous skyscrapers.

Nanning is the capital of the autonomous region of Guangxi in southwest China. It is a medium-size city of about 200 square kilometers, or about one-third the size of Jakarta, but it is on its way to becoming a much bigger city in the years to come.

Not only foreigners are taken aback by the rate of development in the city. "If you leave the city for two or three months, you will find a different city by the time you are back," says Li Hui, a Nanning native.

As the capital city of Guangxi, Nanning mirrors the phenomenal development in the whole region as statistics show.

The municipal authorities of Nanning will pour 1.51 billion yuan (US$186.1 million) in investment into urban projects this year, according to China Daily.

For the revamping and improvement of the 100 hotels in Nanning, the city has earmarked special funds of 30 million yuan. Another 25 hotels have been under construction this year, 18 of which have recently begun trial operations.

Nanning has also completed the construction of the second phase of the Nanning International Convention and Exhibition Center, which covers an area of about 40,000 square meters and allows for an extra 1,260 exhibition booths in six newly added exhibitions halls. At present there are 16 exhibition halls.

Nanning authorities expect the expo to yield contractual capital input of over 12 billion yuan and trade deals worth over 12 billion yuan. The city will propose 125 projects for potential investors during the events. The projects will involve investments of 13.6 billion yuan.

Investment in upgrading the transportation network in the whole region of Guanxi last year reached a record 13 billion yuan, up 46.5 percent from 2003. More than 11 billion was earmarked for highway development last year.

Today, the region boasts 60,000 kilometers of highways of which expressways account for 11,000 kilometers.

Guangxi will invest more than 12 billion yuan this year to build another 1,500 kilometers of highways. The region has already direct airlinks with Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong.

Permanent direct flights to major ASEAN cities are being worked out to replace the current temporary direct charter flights between Guangxi and ASEAN cities. Guangxi has three international airports, namely Nanning, Guilin and Beihai, servicing more than 100 domestic and international flights.

In port development, Guangxi has already more than 20 berths with a total handling capacity of 30 million tons. Its present handling capacity of inner river ports totals more than 30 million tons. Deep-water sea routes are being planned.

By the end of 2010 when the China-ASEAN Free Trade Agreement (CAFTA) is completed, Guangxi is expected to have a total of 61 berths with a handling capacity of 10,000 tons each.

Guangxi has built a railway network linking major cities in Southwest China and Vietnam.

At least 40 billion yuan is earmarked for the Guangxi section of the Luoyang-Zhangjiang Railway that will be completed in 2008.

The only region of Southwest China sharing both land and sea borders with ASEAN countries, Guangxi's gross domestic product (GDP) stood at 161.2 billion yuan in the first half of the year, or an increase of 12.3 percent over the same period of last year. Its economic growth has averaged 9.6 percent annually, according to China Daily. This is slightly higher than the national 9.5 percent economic growth in the first half of this year.

Industry in the region with a population of 48 million people has contributed 52 percent of the total growth. The main industries include sugar refining, non-ferrous metal refining, metallurgy, electric power, automobiles, machinery, construction materials and food.

With a total capacity topping 10 million kilowatts, Guangxi is well on the way to becoming a major hydro-project that will eventually feed power to the eastern regions. With the ongoing development, it is expected to top the production of 25.60 million kilowatts by 2010.

Guangxi is also home to household names in the auto industry like FAW, Dongfeng Motor, General Motors, Daewoo and Renault, with an output of 15 billion yuan for the first eight months of this year.

With a projection of capacity production of 500,000 vehicles this year, Guangxi looks set to become a major auto industrial base in China.

Apart from the auto industry, Guangxi is also rich in mineral resources, like aluminum. It also has a well-integrated forestry, pulp and paper industry.

Guangxi enjoys a unique climate that is suited to plantation, animal husbandry and fishery. In its service industry, including tourism, Guangxi has seen an average growth of 11 percent annually.