China Border City BAIC Gateway to Myanmar & ASEAN
Ruili is trying to attract high-tech manufacturing and processing firms, in an attempt to enhance its competitiveness as the US and Japan turn their eyes to the Southeast Asian region.
Four industry parks involving logistics, bio-pharmaceuticals, equipment manufacturing and livestock processing will be established in the frontier city over the following months in partnership with companies including CITIC Group, Luo Hongyu, executive vice mayor of Ruili told the Global Times on Wednesday.
Favorable policies and tax reductions are also being offered and have already drawn in some big firms like BAIC Group, a major Chinese automobile manufacturer.
BAIC is building a plant with an area of about 3,000 mu (200 hectares) in Ruili’s Wanding Town, with operations scheduled to be up and running by the end of this year with an annual production of 50,000 vehicles. Those cars will be mainly pickup trucks and multi-purpose vehicles, targeting domestic consumers in southwestern China and in South and Southeast Asian markets.
Their plant in Wanding is about 400 meters away from Pang Hseng in Myanmar, making it possible to export products to Myanmar and other Southeast Asian countries faster and cheaper. Currently, the company ships vehicles to Yangon, Myanmar from Tianjin Port.
“Our final goal is to produce 150,000 units per year,” said Chen.
Chongqing Yinxiang Motorcycle (Group) Co is also reportedly gearing up to target Southeast Asian markets with a plant in Ruili which is set to go into operation in September, with annual production reaching 1 million motorcycles.
BAIC’s Ruili division is hoping that Ruili’s government will be able to speed up the permits on car export from Ruili to Myanmar.
Myanmar’s State Counselor and Foreign Minister Aung San Suu Kyi is scheduled to pay a four-day visit to China starting August 17.
This marks her first trip outside the ASEAN region since taking office, indicating that the Chinese market is still important to Myanmar, said Luo, the executive vice mayor.