The Central Government has unveiled a new set of policies and incentives to attract more foreign investment into central and western China. The main areas are:

1. With approval from the Central Government, authorities in the central and western regions of China can develop and implement their "Guide Catalogues of Premier Industries and Projects." Projects listed in the catalogues can enjoy benefits given to those on the official "encouraged list" in China's "Guide Catalogue of Industries for Foreign Investment."

2. The scope of foreign investments and requirements for establishing foreign-invested enterprises in the middle and western regions will be relaxed. Restrictions on the equity ratio required by foreign-invested enterprises in these areas will also be relaxed.

3. Foreign-invested enterprises on the "encouraged list" setting up in the middle and western regions can enjoy a preferential income tax rate at 15 per cent for 3 years more after their initial preferential tax treatment period expires.

4. Re-investment projects in the central and western regions with 25 per cent or above foreign equity can enjoy preferential treatment given to foreign-invested enterprises.

5. Foreign-invested enterprises in coastal regions will be allowed to operate and manage foreign-invested enterprises and Chinese enterprises in the central and western regions on terms of agreed contracts.

6. Provinces, autonomous regions, municipalities and provincial capitals in the central and western regions will be allowed to upgrade one of their existing development zones of their choice to "Development Zone Economic & Technological National Level."