China utilizes Nanning for trade with ASEAN

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.