Policies and Measures of Guangdong Province on Further Expanding Opening-up and Actively Attracting Foreign Direct Investment by People's Government of Guangdong Province
Release time: Sep 21, 2018
In order to comprehensively implement the spirit of the 19th national congress of the communist Party of china and carry out the notification of the state council on Measures of expanding opening-up and Actively Attracting Foreign Direct Investment(document no.5 document by the People's Government of Guangdong Province in2017) and the notification of Measures on Promoting Foreign Direct Investment by the state council(document no.39 document by the People's Government of Guangdong Province in 2017), the province hereby formulates the following policies and measures for better positively attracting foreign investment, creating a sound business environment as well as promoting the fair competition of domestic and foreign enterprises.
I Further Expand Areas of Foreign Investment Market Access.
In accordance with relevant state arrangements, the province will gradually push forward to expand opening-up in the following areas: to ease the restrictions on the portion of foreign equity of special vehicles and new energy vehicles in the manufacturing sector; to remove the foreign equity limit of ship design, regional and general air-crafts maintenance, human resource service agencies, international maritime transport companies, railway passenger transport companies and the construction and management of petrol station. To allow foreign investment in the operation of business place of Internet online service and contact centers, and to ease the restrictions of foreign equity ration and business scope of solely foreign-owned performance brokers; to extend the restrictions on the foreign equity shares and business scope of foreign- funded banks, securities companies, securities investment fund management companies, futures companies and life insurance companies in the financial sector. to deepen the opening up of service industries in Guangdong Pilot Free trade Zone under CEPA, to promote and expand the scope of acceptance and undertaking for associations formed by a Hong Kong or Macao law firm with a Mainland china law firm, to try out Hong Kong’s management mode in the field of engineering construction, and to take the managements of air-routes heading for Hong Kong and Macao as the domestic special routes.
II Increase Financial Incentives for Foreign Investment.
From 2017 to 2022, the new projects (excluding the real estate, finance industry and similar financial industry, the same below) with annual actual foreign investment (excluding foreign shareholder loan, the same below) of more than $50 million dollars, the capital-increase projects with more than $30 million dollars and headquarters or regional headquarters of transnational companies with more than $10 million dollars will be rewarded with no less than 2% of its annual actual foreign investment accordingly by the provincial financial funds, the highest reward can be 100 million yuan. For the Fortune Global 500 companies (the list of Fortune shall prevail, hereinafter inclusive), projects newly set up or capital increment projects by the global industry leading enterprises in manufacturing industries with the actual foreign investment of more than $100 million, a newly-established IAB (new generation of information technology, intelligent equipment, biological medicine) and NEM (new energy, new material) manufacturing projects with the actual foreign investment of more than $30 million, can be given key support through “one discussion upon one project.” the headquarters or regional headquarters of foreign-funded multinational companies that have first contributed over 100 million yuan to the provincial financial year, will be given a one-time reward of 30 percent of its provincial financial contribution, with a maximum award of 100 million yuan. And other reward standards can be arranged by the local governments on the basis of the provincial awards.
III Strengthen Safeguard of Land Use.
Foreign-invested manufacturing enterprises enjoy preferential policies on land use in accordance with the notification of Policies and Measures on Reducing the cost of Manufacturing enterprises and supporting the Development of Real economy of Guangdong Province by People's Government of Guangdong Province.(no. 90 document by the People's Government of Guangdong Province in 2017). the lands for manufacturing projects with an actual foreign investment of more than 1 billion yuan and self-built office property lands of headquarters or regional headquarters of the Fortune Global 500companies and leading enterprises indifferent industries around the world (hereinafter referred to as Key Foreign capital Headquarters) will be jointly arranged by the provincial and cities governments in line with land-use planning indicators. High-standard foreign-invested factories and property rights of the self-built offices by key foreign-funded headquarters will be allowed for separate registration and assignment in terms of taking one building or one storey as a basic unit, and the accumulative acreage for the separate registration and assignment of office property self-built by Key Foreign capital Headquarters shall not exceed 40% of the total construction area. the foreign-invested enterprises that lease industrial lands can determine the floor price of the lease according to the lease term correction coefficient determined by the ratio between the intended leasing term and industrial land leasing maximum term; the lease contract and payment voucher signed with land department can used for transacting planning and application of construction procedures; During the lease term, the above-ground buildings, structures and ancillary facilities can be subleased and mortgaged. For land of the reconstruction projects of the old city initiated by the government can to be assigned or leased via contracts so as to rearrange the industrial lands for foreign industrial projects with needs to relocate. the foreign manufacturing enterprises utilize the industrial real estate in stock to develop productive service industry and establish spaces for makers and innovation workshop scan maintain the original purposes and types of land use in the first 5 years, and transact in accordance with relevant provisions after the first five years. Public service projects as medical treatment, education, culture, pension, sports, etc. jointly funded by foreign investment and government, using the allotted land, can be granted land supply in accordance with the state-owned construction land through investment or shares buying.
IV Support the R&D and Innovation.
To support foreign R&D institutions (including internal R&D institutions or organs of enterprises, the same below) to participate in the construction of public service platform and government science and technology projects in Guangdong Province, and enjoy relevant supporting funds. From 2017 to 2022, the foreign R&D institutions accredited as the new-type R&D institutions funded by foreign investment at the provincial level can receive a maximum subsidy of 10 million yuan; those recognized as postdoctoral workstations and workstations of the academicians of the Chinese Academy of sciences and Chinese Academy of engineering can receive a maximum subsidy of 1 million yuan. For the highest subsidy for approved innovation platform construction project of the provincial enterprise technology center, the maximum subsidy is 2 million yuan. The Fortune 500 Global companies and leading enterprises in different industries around the world will be given priority support in accordance with “one discussion upon one project” when they newly set up foreign-funded R&D institutions with independent legal person qualifications in Guangdong. Strengthen the pilot programme of government procurement and support for the innovative products, expand the scope of applicable products, and implement incentive measures about the government procurement for those products of foreign-invested enterprises that are approved and included into the list of provincially innovative products. The medicine marketing authorization holder of foreign-invested companies are encouraged to produce and settle the new first-class national medicines of the large varieties in Guangdong Province. Green channel will be provided for entering the list of medical insurance medicines in Guangdong and link-up with drug price negotiations and centralized purchasing work. The certificated foreign research and development centers that import technology development supplies will be exempted from tariff, value-added tax and consumption tax, as well as be fully refunded in terms of the value-added tax when purchase domestic equipment. For foreign-invested companies, providing technology transfer, technology R&D and relevant technology consultation and other technology services, can be exempted from added-value tax if they meet the criteria. the preferential policies for companies in advance technology of the service industry shall be promoted. the foreign R&D centers can willingly choose the mode of advance inspection, make customs clearance and articles release custom mode appointment when import equipment, reagents and samples for research and development. Foreign investment research and development centers are allowed to bonded import the key second-hand research and development equipment (with a term of entry no more than one year.) high-value patent, insurance compensation mechanism for the first set of key technology equipment shall be established.
V Intensify Financial Support.
Utilizing the Guangdong Provincial Industry Development Fund and encouraging the equity investment to give keysupport to global Fortune 500companies, global industrial leading enterprises to invest in Guangdong, and support major outbound M&A projects of Guangdong to carry out round-trip investments through equity investment to explore "the NRA +" pilot programme in Guangdong Pilot Free trade Zone by relying on local NRA of foreign institutions, to support thee nterprises with foreign investment in Guangdong to conduct fully cross-border two-way financing in both domestic and foreign currency, and obtain domestic and foreign currency financing within 2 times net assets of external debt; to issue bonds in and out of the region, allow companies to reuse the repatriated funds raised abroad. to support transnational enterprise groups to establish two-way cross-border RMB capital pool in Guangdong Free trade Zone. to support the foreign-invested lease finance company in Guangdong Fee trade Zone to conduct foreign currency settlement business within the permitted scope of the regulations; to support the pilot programme of the operational leasing in foreign capital in sectors like airplane and vessels. To carry out trials on the bundled collateral financing of patent right, trademark right and copyright. To encourage different cities to promote the patent mortgage financing mode in format of “loan+guarantee insurance/assurance + fiscal risk compensation”. Foreign invested companies are entitled to relevant supporting policies for domestic listings to those provide companies in Guangdong, .and listed in national equities exchange and Quotations(NEEQ) and regional equity market financing.
VI Enhance Talent Support.
To implement “Guangdong superior talent card” and include the senior management personnel in foreign-invested enterprises and other seven categories of talents as the service objects, and gradually expand the use of “Guangdong superior talent card” as proof of identity in Guangdong Province. the holders of “Guangdong superior talent card” and their spouses and minor children are regarded as the registered permanent residence of the city, and enjoy the same preferential policies in personnel housing, education, medical treatment and elderly care. Those card holders, who live in the Mainland china, can apply for a commercial endorsement (or business certificate) for Hong Kong and Macao as well as other entry and exit documents in Guangdong, so as their spouses and minor children. The practice of awarding those card holders who have made contribution to economic and social development in Qianhai, Shenzhen should be promoted. the foreign holders of "Guangdong superior talent card" can apply for the within- five-year work permits and residence permit valid for five years for foreigners, and the time of applying procedure will be one half of the legal limit; the foreign employees who are eligible to the relevant conditions are preferred to apply for permanent resident identity card. those who hold the foreigners permanent residence permit shall have the same rights as Chinese nationals when they start a technology company. The designated foreign high-level talents shall have the convenience in entering and/or exiting in/out of the country, residence and employing or hiring of foreign homemaking workers. the high-level overseas returned talents who have comeback to work in foreign R&D institutions can be directly identified senior titles. Guangdong will gradually promote six exit and entry policies and measures for talents in support of the construction of Guangdong Pilot Freetrade Zone.
VII Reinforce Intellectual Rights Property Protection.
To speed up the construction of china (Guangdong) Intellectual Property Rights Protection center, and establish and improve the mechanism for the rapid examination, confirmation and protection of legal rights. To introduce the system of intellectual
Property rights protection for foreign-invested enterprises. To carry out pilot reform of the comprehensive law enforcement of intellectual property rights, and establish a cross-regional and cross-department intellectual property case transfer, information notification and cooperative investigation mechanism. To strengthen special law enforcement of trademarks and strictly protect exclusive using rights to trademarks for foreign invested enterprises. Make the rules and regulations of Intellectual Property Protection in areas as Internet, e-business and Big Data.to establish an international intellectual property rights trading center, establish and construct the industrial development work mechanism centered for patent-navigated, and promote the transfer of high-value intellectual property rights. To promote the construction of trademark business acceptance windows and facilitate the registration and pledge of trademarks for foreign-invested enterprises. To establish joint assessment mechanism for patent right, trademark right and copyright, risk sharing mechanism for pledge financing and mechanism for rapid processing hostage. To encourage foreign-invested enterprises to apply for patents in china, their inventions, discoveries and other scientific and technological achievements shall be involved in thee valuation of various awards at all levels in Guangdong Province.
VIII Improve the Level of Investment and Trade Facilitation.
To comprehensively implement the pre-establishment national treatment plus negative list management mode. To further standardize the government's examination and approval authority and standards, optimize the approval process for enterprises' investment, and compress the existing investment approved items and approval times by a quarter. To delegate the establishing of foreign-invested enterprises and record changing to the commercial departments at prefectural (municipal or regional) levels. To entrust the 18 items of provincial administrative licensing matters concerning the establishment and change of foreign-funded enterprises in such fields as medical institutions, travel agencies, gas stations to the relevant departments of people's governments at municipal level or above in accordance with the law, and gradually entrust to management committees of state-level development zones after conditions becoming mature. to allow head offices and branches of foreign-invested enterprises that carry out trans-regional operation in Guangdong Province with independent legal person qualification to pay VAT on a consolidated basis and their branch offices can pay it locally. For those within the range of certain conditions, which assetted foreign investors investing encouraged in tems by using profits earned from chinese enterprises, the delayed tax-collecting shall be applied. To optimize the approval process of the flexible working hour system and comprehensive calculation working hour system, and reduce the time of applying procedure by a third of the legal time limit. To positively explore the entrusted system of administrative approval for major foreign-invested projects. One Window system for international trade shall be copied and promoted, and to reduce the time of goods clearance by a third.
IX Optimize the Environment for Foreign Investment in Key Parks.
To support qualified national development zones to implement the administrative examination and approval authority model and "one-seal management examination and approval". Support the inclusion of the management for provincial development zones in the eastern, western and northern partsof Guangdong Province into provincial industrial transfer parks, so as to enjoy the relevant supporting policies of provincial industrial transfer according to the regulations. With reference to the preferential income tax catalogue of enterprises in Qianhai in shenzhen and Hengqing in Zhuhai, the zones and the locals are encouraged to give reward for these newly-established foreign-invested projects within the state-level development zones according to a certain proportion of their direct economic contribution. The new foreign-funded projects in the provincial industrial parks (including provincial transfer industrial parks and parks which enjoy provincial policies on industrial transference)will enjoy provincial financial support. All cities at or above prefectural-level will be authorized to approve the expansion and location adjustment of provincial-level development zones and approval results shall be submitted to the provincial government.
X Improve the Mechanism for Foreign Investment.
To establish foreign investment coordination working mechanism led by the leadership of provincial and municipal governments, to coordinate and solve the key issues that restrict foreign investment attraction at regular intervals, especially for the world top 500 enterprises in Guangdong. To integrate and optimize overseas economic and trade offices of Guangdong Province, and accelerate the construction of an international investment promotion system in Guangdong Province. Guangdong will also improve the complaint mechanism for foreign-invested enterprises. Investment attraction in different cities shall be standardized, strictlyful fill the policy commitments made to investors in accordance with the law and earnestly implement all kinds of contracts and agreements signed in foreign business promotions. to implement preferential policy for foreign investment attraction group, give priority to the formulation of temporary overseas trip plans, and clearance procedures. Relevant departments of the province should formulate relevant implementation rules within one month. All cities should increase the support of foreign investment and introduce targeted policy measures through the combination with work practice within 3 months. All departments shall publicize and implement the policies and measures to enterprises and the implementation instance shall be submitted to the Department of commerce of Guangdong Province, who will summarize and report to the People’s Government of Guangdong Province. The People’s Government of Guangdong Province will carry out special inspections to all departments and cities in the light of the situation, and commend the cities that make good use of actual foreign investment in the whole province while conduct accountability to the cities, departments and relevant responsible persons of the weak work.