Preferential Policies of Lanzhou New Area for Investors

Competitiveness I

Strategic Geographic Location within China

Lanzhou is located in the geographical center of the country and plays a crucial role in securing the nation’s economic, political, and defense interests. As a key junction of the transcontinental railway connection between Europe and Asia, Lanzhou New Area serves as a strategic hub linking West and East Asia via Central Asia. It also forms the only land connection between East Asia and Eastern Europe, which gives Lanzhou New Area significant influence in the international market.

Competitiveness II

A Bridge for the Development of Western China

Lanzhou New Area acts as a vital hub for railway, road, telecommunications, and gas (petroleum) supply in the west. This infrastructure is part of a vast network connecting various parts of China. As part of China’s national development strategy, the western region will become the next frontier after the rapid development of the coastal areas. Thanks to its unique geographical location, Lanzhou New Area will play a key role in industrial transfer, contributing to balanced development and greater integration of western China into global markets.

Competitiveness III

Abundant Land and Water Resources

Lanzhou New Area is ideal for large-scale development due to its flat landscape and abundant natural resources. The planned water supply capacity of the water diversion project from the Datong River to the Qinwangchuan District exceeds 443 million cubic meters, while current consumption is less than 200 million cubic meters. By expanding the water channels, another 200 million cubic meters can be utilized. Lanzhou also serves as a power grid hub, connecting various regions of the Gansu and Qinghai provinces, ensuring a stable energy supply for the development of the New Area. In addition, the region’s mineral and wind resources offer further potential for sustainable growth.

Competitiveness IV

Policy Support

Investments in Lanzhou New Area benefit from several preferential policies, including:

Guidelines for the Implementation of the Industry Transfer Program in Central and Western China (State Council Document No. 28, 2010)

Guidelines for the Development of Lanzhou New Area (National Development and Reform Commission No. 2786, 2012)

Ten policies of the central government to support the circular economy in Gansu Province

Various tax incentives under the western development strategy and for high-tech zones

These policies create a favorable environment for investors and promote economic growth and development in the region.

Competitiveness V

Industrial Integration

Lanzhou has long been a center for the aviation and defense industries. It has also developed strong capacities in petrochemical production, machinery manufacturing, and non-ferrous metal metallurgy. As part of the “Out of the City and Into the New Area” strategy, these industries are gradually relocating to Lanzhou New Area, providing strong support for the region’s leading sectors. The industrial ecosystem is further enhanced by a layout featuring two zones, three corridors, and multiple clusters, giving businesses opportunities to lower costs and integrate resources.

Competitiveness VI

Integrated Transportation Network

Aviation: Zhongchuan Airport operates more than 60 routes, connecting Lanzhou with over 40 domestic and international cities, including Hong Kong, Bangkok, and Taipei. The airport is continually upgraded, increasing the terminal capacity to up to 4,600 passengers per hour.

Railways: Lanzhou New Area is served by nine main railway lines, making it an important connection between eastern and western China.

Roads: Key roads, including National Highways 312 and 109, Provincial Road 201, as well as the Lianhuo and Jingzang expressways, further improve the region’s accessibility.

Competitiveness VII

Talent Resources

Lanzhou is home to over 1,200 research institutions, 20 national and provincial key laboratories, and 30 universities and colleges, producing a pool of around 300,000 professionals. Among them are 21 academicians from the Chinese Academy of Sciences (CAS) and the Chinese Academy of Engineering (CAE). This concentration of talent, particularly in the fields of science and engineering, supports the development of Lanzhou New Area. Additionally, lower labor costs increase the competitiveness of companies in the region.

Competitiveness VIII

Cost Advantages in Western China

While the rapid development in other parts of China has driven up material costs and increased market saturation, Lanzhou New Area offers significant advantages in this regard. With abundant raw materials, lower transportation and construction costs, affordable land, and a surplus of labor, the region provides a more economical environment for production. Lower labor costs and competitive rental prices make Lanzhou an attractive option for companies looking to reduce operating costs and enhance their competitiveness.