At the forefront of one of the world's newest free trade areas, Guangxi has adopted a series of measures to draw overseas investment and maintain strong economic growth.

The hub of the world's third-largest free trade zone - and the largest in the developing world - Guangxi is eyeing benefits from a potential market with 1.9 billion people and a total trade volume of US$4.5 trillion.

At a meeting of economic ministers from China ASEAN members in Vietnam in August, officials from all participating countries lauded achievements of the free trade area.

Even in global economic downturn that began in 2008, trade with some ASEAN members maintained strong momentum, said Chinese Minister of Commerce Chen Deming.

By the end of June, Guangxi had attracted 2010 investment worth more than 171.5 billion yuan.

Inbound investment is expected to reach 188.5 billion yuan in the second half of the year and reach some 360 billion yuan for the year, an increase of more than 40 percent over 2009.

In the first six months, 519 new domestic investment deals worth a total of nearly 135 billion yuan were signed for development in Guangxi.

43.5 percent growth

The automotive, petrochemical and metallurgical sectors attracted a combined 73.72 billion yuan, an increase of 43.5 percent from the same period last year.

According to the Guangxi statistics bureau, investors from Hong Kong, Macao and Taiwan spent more than 8 billion yuan in Guangxi in the first six months, up 30.7 percent from the same period of last year.

Taiwan's businesses have been active with a strong presence in the Beibu Gulf Economic Zone.

An economic area bordering the ASEAN economic bloc, the Beibu Gulf Economic Zone in Guangxi serves as a springboard for Taiwan's companies to do business in the region.

A part of the zone, the Nanning ASEAN Industrial Park has attracted a large number of renowned enterprises from Taiwan including Foxconn, Unity, Vedan and Master Kong.

Taiwan's investment in Guangxi has averaged an annual growth rate of 40 percent in recent years.

Taiwan is now ranked No 2 in overseas investment in Guangxi. By the end of 2009, the region had approved 1,319 Taiwan-invested projects worth almost US$5 billion.

Guangxi now has three rail lines that connect to neighboring Southeast Asia along with a number of highways to Vietnam, including an expressway from Nanning over Friendship Pass.

Its 46 harbors that can handle 10,000-ton ships have links to ports in Hong Kong, Macao, Southeast Asia and around the world.

Guangxi has international airports in Nanning and Guilin now offering flights to eight ASEAN member countries.

The widespread transportation network now offers lower logistics costs, said Ma Jixian, deputy chief of Guangxi Bureau of Commerce.

(China Daily October 19, 2010)