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Baotou wins US$23m in foreign investment

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Christine Chan

Baotou, a key industrial city of the Inner Mongolia autonomous region, has clinched deals with foreign investors worth a combined US$23.35 million at the start of a trade fair in Hong Kong, officials say.

Baotou vice-mayor Cao Zhenghai said investors from Taiwan, Japan and South Korea - countries which suffered the most in the region's financial turmoil - provided the most money during the trade fair this week.

'It underlines the complementary function between Baotou and these Asian countries,' he said.

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Seven contracts and one letter-of-intent had been signed, ranging from the processing of rare-earth and metal products to development of affordable housing and processing ingot aluminium.

Mr Cao said the city was encouraging foreign investment in rare-earth and steel processing, construction of city infrastructure and highways, housing projects and redevelopment of old districts, and the development of retail and entertainment facilities.

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These investments could carry a 20 per cent rate of return, he said.

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