Location: Baotou is situated in the central part of Inner Mongolia, on the Tumochuan and Hetao Flatlands, with the Yellow River to the south and Mongolia to the north. The greater municipality occupies an area of 27,691 square kilometers, and has become a strategic area linking the Bohai Economic Zone to the northwest. Baotou is the largest rare earth industrial base in China, and is also famous for its facilities for the production of iron and steel, machinery, non-ferrous metals, and textiles.

Transportation: Baotou is only 700 km from Beijing, and has become a transportation hub for the northwest part of the country. There are direct flights to Beijing (1 hour), Guangzhou (5 hours), Xi��an (1 hour), and Wuhan (2 hours), and through these hubs to other domestic and international destinations. There is also daily passenger train service to all parts of the country, including Beijing, Shanghai, Tianjin, Ningbo, Xi��an, Wuhan, Shenyang, and Lanzhou, with connections to other major coastal cities. From late 2002, freight trains will be able to clear customs locally, and be shipped directly through the sea-port of Tianjin. Two national highways, Numbers 110 and 210, pass through Baotou, linking Beijing to Yinchuan, and Xi��an to Baiyunebo.

Natural Resources: Baotou is rich in rare earth resources. Its proven reserves of rare earth put it first worldwide. Baotou rare earth ore features high grade, high content rare earth elements, and low production cost. In 1999, rare earth extraction in Baotou accounted for 60% of the world total. In addition to rare earth, Baotou is rich in other minerals, such as iron, niobium, gold, magnesium, copper, and coal, with the second largest reserves of niobium in the world. The world famous Shenfu-Dongsheng coal deposit is located near Baotou, with reserves of over 200 billion tons. The Yellow River passes through Baotou, with annual water discharge of 26 billion cubic metres. Dalate Power Plant, with a capacity of 5 million kWh, is only 40 km away. Thus, Baotou not only has rich mineral resources, but also enjoys a healthy supply of water and power.

Technical Support: There are over 100 R&D organizations in Baotou, including three universities and two famous research institutes, providing a rich supply of well-trained human resources. Baotou Rare Earth Research Institute is the world��s largest rare earth research organization. The, under the Ministry of Military Industry, have a strong R&D team and advanced facilities.

Industrial Base: Baotou has well-established industrial systems, including iron and steel, rare earth, machinery, non-ferrous metals, textiles, electronics, and chemical engineering. Baotou Iron & Steel Corporation, the 5^th largest steel works in China, has an annual production capacity of 4 million tons of cast iron and 4 million tons of steel. The Inner Mongolia #1 and #2 Machinery Factories have established joint ventures to produce North Benz and Terex heavy-duty trucks and tractors with sales at home and abroad establishing Baotou as one of the top 3 heavy-duty truck production bases in China. Baotou Aluminum Plant is one of the largest aluminum producers in China, and has played a leading role in production capacity and technological improvement in this field in China. Baotou is also an important production base for cashmere and linen products. Baotou King Deer Cashmere Group is one of the largest cashmere producers in the world and its exports of cashmere products has been ranked first domestically in recent years.