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Foreign-invested companies to benefit from measures including access to the

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China's efforts to phase out preferential treatment for the special economic zones (SEZs) are being countered in Shantou with new policies aimed at attracting more investment and lowering the costs of doing business.

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Shantou vice-mayor Chen Youlie said foreign-invested companies would benefit from a range of new privileges, including greater access to the domestic market and discounted electricity, water and land prices.

'We are shifting from a reliance on preferential policies to a reliance on high-quality, high-profit enterprises,' Mr Chen said.

'We will continue to take advantage of our power to experiment, to come up with new ways to remain superior.' Long a hub for commerce and trade, the port city in northeastern Guangdong plans to set up its first joint venture foreign trade companies this year, Mr Chen said.

Certain foreign-invested enterprises, in addition to setting up retail outlets in the SEZ, will also be allowed to begin selling up to 100 per cent of their product in the domestic market - a major concession to foreign demands.

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Mr Chen said foreigners investing in value-added agricultural enterprises, old state-enterprises undergoing reform and companies making hi-tech products to replace imports would be the first to gain greater access to the domestic market.

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