| Focal Fields and Investment Direction
On the basis of existing installations and facilities, we intend to absorb foreign capital
and use
sales channels abroad to achieve following results. First, to speed the technological
transformation
of present enterprises. Secondly, to improve product quality and increase product
varieties. Thirdly,
to strengthen export capacity in the lines of light industry, textile, machinery,
electronics, metallurgy,
building materials,medicine, chemical industry, foodstuff, aquaculture, etc.
A focal point of development is those large projects
intensive of technology, putting out
high-grade products of large added values and market shares, highly export-oriented or
promising
certain scale of benefits.
Export projects which can meet the demand
of markets at home and abroad, improve
product quality, enlarge international sales and can increase foreign exchange income.
Industrial projects which can produce
such products that fill in the gaps in domestic
market or such new equipment and new materials that meet the market demands, as well as
agricultural industry projects which can provide new technique.
Resources-exploiting projects will be developed vigorously,
for example,introducing improved
varieties, fine breeds and new technology of agriculture, building bases of grain, cotton,
oil, fruit and
animal products, developing the late-processing and finely processing of agricultural by
-products or
contructing bases of export commodities.
Land lease or transfer, land development
in tracts and infrastructure projects.
Forms of Investment
Wholly
foreign-owned exclusive investment;
Joint ventures and cooperatively managing enterprises;
Transforming existing enterprises through joint ventures;
Compensation trade, processing supplied materials, assembling supplied components and
accessories or producing with supplied designs;
Other legal forms of investment.
Ways of Providing Funds
Foreign exchange in cash remitted or carried in by foreign investor.
The necessary machines and equipment, raw materials and other
articles needed during the
production of the foreign investment enterprises. However the prices should not be higher
than
those of the same kind in the international market at that time.
The industrial properties, technical know-how and the like,
together with complete sets of
relevant documents, should comply with the following requirements:
The products manufactured should be those needed urgently at home
or fit for the market
abroad;
They shall remarkably improve the function and quality of present
products and raise the
productivity;
Those shall save raw materials and energy remarkably.
Favorable Policies of Investment
Foreign investors can obtain the use right
of land in appointed areas. The most years of using
land are respectively: 70years for residence; 50 years for industry, education, culture,
public health,
sports and other comprehensive projects; 40years for commerce, tourism and entertainment.
The
land use right obtained through the way of the land-owner's selling land use right can be
transferred,
leased or mortgaged under certain conditions.
The enterprise with foreign investment shall be free from land
use charge for ten years if it meets
any of the following requirements:
(1) It makes use of the
uncultivated land to engage in the development projects of
agriculture,forestry, animal husbandry and fishery.
(2) The projects to
develop transportation, energy resources and infrastructures;
(3) The projects to
exploit uncultivated land hollow land or low-lying land;
(4) The enterprises
that had been defined as one producing export goods or as one being
advanced in technology.
From the day when the present provisions are promulgated, the preferential treatment of
reducing land use charge shall be given to those who come to the city to invest earlier.
The land
development charge shall be calculated and imposed at one time or in installment. The
charge shall
be controlled between 50RWB per square meter and 100 RMB per square meter and the specific
amount shall be discussed and decided by both Chinese and foreign sides.
For foreign-invested enterprises, taxes shall be levied on
enterprise incomes, at the rate of 30%
by the State and at the rate of 3% by the locality. However the enterprises whose
operation time
more than 10 years shall not pay the income taxes in their first and second profit years
and shall be
reduced by 50% from their third profit year to the fifth year, except those special
provisions
specified.
Those enterprises with
foreign investment whose export amount for 70% of its products shall
pay income taxes at the half rate but the half rates shall not below 10%. The half rate
period shall be
extended to the eighth profit year for technologically advanced enterprises with foreign
investment. |