The Lhasa violence that erupted last month has not dampened businessmen's confidence in the potential of the market, a Tibet Autonomous Region industrial and commercial authority official has said.

After the March 14 violence, 15 new private companies were registered at the regional bureau of industry and commerce with registered capital totaling 59.4 million yuan (US$8.49 million), according to bureau statistics.

More than 10 investors visited the bureau for information on setting up businesses in Tibet since the capital calmed down. Some had called from inland provinces inquiring about the region's investment environment, a bureau official said.

"We did not see a drop in the number of business registrations after the violence, which shows investors are still confident of business opportunities and the investment environment," said Xu Fei, Party secretary of Federation of Industry and Commerce of Tibet.

"The Lhasa violence did produce an adverse impact on the economy and social life in Tibet in the short term," said Zhang Juechun, manager of Lhasa-based Longwei Industry and Trade Co., Ltd.

He added that over the longer term, the western part of China would continue to grow and market opportunities would abound.

"We will extend our business to the fields of tourism, catering and mining."

The Lhasa violence caused an economic loss of 280 million yuan in property damage. Government agencies have promised to exempt damaged shops from business and corporate income taxes, urban maintenance and construction taxes and educational surcharges.

Shop owners will not have to pay personal income tax from March 1 this year to April 28, 2010.

Zhang Yongchao, a businessman from northwestern Shaanxi Province, said he had intended to return home after the violence but the government's aid and preferential policies for affected businessmen changed his mind.

"The social order is back to normal. I want to start a business again," Zhang said. His two cyber cafes resumed operation on March 29. He has also ordered 170 more computers in hope of expanding his business.

(Xinhua News Agency April 11, 2008)