Invest in Inner Mongolia | investinchina.chinadaily.com.cn

Invest in Inner Mongolia

chinadaily.com.cn Updated: 2019-03-22

Overview

Inner Mongolia autonomous region, located in the northern part of China, features a long and narrow strip of land, stretching 2,400 kilometer from west to east and 1,700 km from north to south. 

It shares a 4,200 km border with Mongolia and Russia to the north. 

The region has an area of 1.18 million square kilometers, accounting for 12.3 percent of China’s total land area. 

Inner Mongolia has multiple landforms including plateaus, mountainous regions and plains. Its Inner Mongolia Plateau is the second largest among the four major plateaus in the country. 

It has a temperate continental monsoon climate. The hottest month always comes in July with a high of 36 °C to 43 °C. January is the coldest month with temperatures ranging from -10 °C to -32 °C. 

Inner Mongolia is rich in natural resources including wildlife, water resources, wetland resources, and rare earths. The Bayan Obo rare earth mining area is the world's largest.

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Inner Mongolia is an important area for the Bohai Economic Rim (on the Bohai Gulf of the Yellow Sea) and China's Northeast Economic Zone, as well as a fundamental economic link between northern China and the vast northwestern part of the country. 

The region registered steady growth in 2018, with GDP reaching 1.73 trillion yuan ($245.74 billion), an increase of 5.3 percent year on year, according to the statistics released by the regional government. Statistics revealed that primary industry grew by 3.2 percent, secondary industry grew by 5.1 percent, and tertiary industry by 6.0 percent. 

Pillar Industries 

Inner Mongolia’s pillar industries include agriculture and livestock farming, energy industry, chemical industry, equipment manufacturing industry, hi-tech industry and service industry.  

Agriculture and livestock farming industry 

In 2017, the region produced 27.68 million metric tons of grain, 2.68 million tons of meat, and 6.93 million tons of milk. Its mutton, fine wool and cashmere output rank top in the country. 

Many famous brands are established in Inner Mongolia, such as dairy brands Yili and Mengniu, Khorchin Fat Cow and Erdos cashmere.

Energy industry 

As China’s major coal-producing region, Inner Mongolia produced 905.97 million tons of coal in 2017. It also produced 1.25 million tons of crude oil and 29.95 billion cubic meters of natural gas, as well as generated 443.59 billion kW of electricity, with 55.14 billion kW of that from wind.

Chemical industry 

Progress in coal-to-oil, coal-to-olefin, coal-to-gas, and coal-to-glycol conversion projects is being made, producing a total of 8.2 million tons of carbinol in 2017, as well as 1.03 million tons of liquid fuels and 1.45 billion cubic meters of gas. 

The region's steel output reached 20.03 million tons in 2017, with 2.14 million tons of that in aluminum, aluminum strips and foil. Cement output reached 30.45 million tons for the construction materials industry. 

Equipment manufacturing industry 

In 2017, the equipment manufacturing industry in Inner Mongolia had a value output of 32.35 billion yuan. 

The government is pushing forward with upgrading the industrial structure in the sector, aiming to achieve an output value of 25 billion yuan by 2020.

Hi-tech industry 

The city of Baotou is a rare earth base with a complete industrial chain. It also has many top products, such as NMR spectrometers, and annually produces more than 10,000 tons of polycrystalline silicon and monocrystalline silicon. 

The region's cloud computing industry and biomedical industries are developing rapidly. The cities of Hohhot, Tongliao, and Chifeng have built industrial chains for bulk pharmaceuticals, animal vaccines, pesticides, fermented products, Sino-Mongolian medicines, and chemical synthetic medicines. Hohhot is also home to a bio-medical cluster with China's biggest bio-fermentation base, dominated by medicines and production of related raw materials.

Service industry 

The region has seen rapid growth in services industry, including business logistics, transportation, finance, insurance, and tourism. 

The tourism industry contributed 344 billion yuan to the total revenue in 2017.

Advantages 

As the first provincial-level autonomous region established in China, Inner Mongolia is at the forefront of China's opening up and the implementation of the Belt and Road Initiative (BRI). 

It has established friendly relations with 41 regions of 11 countries along the Belt and Road since 2013. It has also become a popular investment destination for the countries taking part in the Initiative. 

Compared with other regions, Inner Mongolia holds the competitive advantages in the following aspects: 

First, it enjoys advantages on geographical location. Inner Mongolia connects eight provincial regions, and borders Russia and Mongolia. 

A total of 18 cities in the region were designated as border cities. Its city of Manzhouli is one of the first batches of border cities in the country. It is the key hub for China’s inland railway network and penetrates into West Siberia in Russia, which in turn links to Europe. 

The border city of Erenhot, the biggest railway port between China and Mongolia, saw its railway trade volume with Mongolia go up 16 percent year-on-year to 11.2 million tons in 2017. 

With these ports and five international airports, Inner Mongolia becomes a uniquely advantageous region for industries like international logistics, trade, the import-export business and border tourism. 

Second, the local government has adopted a series of favorable policies to attract more investments. It has set up special funds to support the further development of industries such as big data, new energy, and service industries. 

In addition to funds, the government also released preferential policies and provides convenient services for loans, taxation, land use, and energy supply. 

Third, Inner Mongolia boasts a stable environment for investment. The region leads four other autonomous regions in regional autonomy for ethnic minorities, with 55 ethnic groups living together in harmony. This assures a fair and stable environment for investors.

Investment promotion agencies

1. The Bureau of Commerce of Inner Mongolia Autonomous Region

Contact:

Tel: 0471-6946025

Website: http://swt.nmg.gov.cn/index.shtml (Chinese)

2. Hohhot Municipal Bureau of Commerce

Contact:

Tel: 0471-6621200

Fax: 0471-6621422

Address: No 12 East Xinhua Street, Saihan District, Hohhot, Inner Mongolia

Website: http://swj.huhhot.gov.cn/swj/index.htm (Chinese)

3. Inner Mongolia Autonomous Region Investment Promotion Network

Contact:

Tel: 0471-6659264