Proposals on the Development of Export-oriented Economy in Changde
Proposals on the Development of Export-oriented Economy in Changde
I. To lay out the objective, distribution and planning
Article I The objective of developing export-oriented economy in Changde, on the current basis, is that the actual amount of utilizing foreign capital each year rises at the average rate of 20% and foreign trade market expands at the growth rate of 15% year by year. Foreign economic cooperation, introduction of economic and technological projects and labor export maintain fast growth. In order to promote the rapid growth of the Changde’s GDP, the growth rate in various aspects of export-oriented economy is to be far higher than that of the city’s economy.
Article II The top priority of economic work in Changde is to develop export-oriented economy. We are planning for the new framework of the export-oriented economy in Changde by developing export-oriented economy as a part of the overall planning of the city’s economic and social development, and by our investment policies, according to which, the equal opportunities are given to support the primary, the secondary and the tertiary industry, to promote the large, the medium, and the small projects, and to develop sectors of the economy side by side with the development of export-oriented economy by taking full advantage of our city’s competitive industries and resources.
1. To enhance international competitiveness and fully improve the degree of opening up, with overall planning, to convert the development of foreign trade from extensive to intensive, from quantitative to qualitative, increase dependence on foreign trade, especially in industry and agriculture and enhance export’s drive for GDP growth. To establish a dynamic organizational framework for the foreign economy and trade and to seek coexistence and joint development of economy with Perse forms, such as state-owned enterprises, collective-owned enterprises, foreign-invested enterprises, private economic elements, etc.
2. To focus the development of the export-oriented economy in Changde on the eight districts and four parks: with Deshan Development Zone and High-Tech Industrial Park as the lead and continue the poly of opening up in the areas along Shimen-Changde Railway and along Expressway lines such as Changsha-Changde, Changde-Zhangjiajie. Every district and county in Changde shall develop special industrial areas with their features by making full use of their own superiority in industries and resources.
3. To foster and support ten leading industries in such areas as beef cattle, dairy, sheep, poultry, pearl, poplar, bamboo, orange, vegetable and flue-cured tobacco, etc. so as to optimize the industry structure in Changde, e.g. to enlarge foreign capital’s scale invested in agriculture, to promote industrialization process in Changde, to improve competitiveness of processing industries, expand tobacco industry and relevant supporting industries, to advance some traditional industries such as textile, paper making, building materials, electromechanical industry, etc., to foster some emerging industries such as biopharmaceuticals, electronic information, applied software, health foods, etc., and work hard to upgrade industrialization process. To develop service trade, quicken the process for opening up such fields as commerce, finance, insurance, information service, tourism, scientific research, education, intermediary service, etc. Every district and county in Changde shall develop their distinctive industrial clusters, such as high-tech, tourism, service and trade in the urban area; e.g. to develop food processing and auto parts and components industry in Jinshi County, breeding and crop farming in Anxiang County and Hanshou County; textile and clothing, aluminum in Taoyuan County; breeding and tourism in Shimen County, and so on.
II. To make continuous efforts to attract more foreign investments and make full use of them.
Article III To implement five transformations, namely, investment projects transforming from general projects to TNC projects with high-tech projects as the priority, from quantity to quality, from scattered o systematic, from region-oriented to industry–oriented, from passive to active, from industry capital-oriented to both industry and financial capital-oriented.
Article IV To focus foreign investment attraction on the following five aspects: infrastructure and basic industries, brand name products and high-tech industries, exploiting and deep processing for agricultural resources, reforming and restructuring existing enterprises, tertiary industries, such as service and tourism.
Article V To broaden channels of investment attraction, i.e. to encourage foreign direct investment, seek overseas loans and loans from foreign governments, assistance from foreign government, absorb foreign financial capital in forms of equity or private funds to form a new pattern economy with various forms.
Article VI To develop new approaches to attract investment. To make full use of intermediary agents, professionals modern information tools, to establish project database and customer database with an annual storage of 200 investment projects and 150 large investment projects in the project database, to timely upgrade Changde foreign trade websites.
Article VII To attract investment from transnational corporations, domestic listed companies and dominant enterprises in developed coastal areas at home to set up their branch offices, R& D institutions or marketing network in Changde.
Article VIII To emphasize on promoting industrialization, agricultural industrialization, urbanization and industrial structure adjustment in Changde. To take full advantages in planting and breeding, tobacco, clothing, textile, electromechanical industry, food, medicine, auto parts; the tertiary industry’s superiority in tourism and service. To encourage foreign investment in forms of BOT, TOT and the like to participate in Changde’s infrastructure construction projects such as roads, bridges, water conservancy, energy and urban public facilities and “treatment of the three wastes (waste gas, waste water and industrial residue)”..
Article IX To actively and steadily open the tertiary industry markets. To encourage domestic and foreign investment to develop tourism resource and business circulation by the means of joint capital, cooperation and equity purchase, etc., to set up institutions in financial industry, medical service, vocational education and higher education, joint venture accounting firms, law firms, engineering companies, construction and related service enterprises, water and land freight enterprises, etc.
Article X To give prominence to planning and building various types of parks: Deshan Economic Development Zone, Liuye Lake Resort, Deshan High-Tech Industrial Park and Changde Furniture Industry Park, etc. to give full play to their leading positions in the process of opening up and attracting investment.
Article XI To conduct regular training for polymeric personnel with high-quality for the development of foreign-oriented economy so as to help them to become the backbone in developing foreign trade in Changde.
III. To spare no efforts to expand import and export trade, thus stimulating economic growth in the Changde.
Article XII Take the chance of Chin’s entry into WTO and take full advantage of our city’s resources in the development of import and export trade in Changde.
Article XIII To support and develop a number of leading enterprises for import and export in the fields such as textile and clothing, food processing, medicine, electromechanical industry, and shipping with more preferential policies and capital supports.
Article XIV To promote trade with science and technology and cultivate a group of new leading export products. To foster new high-tech industries and develop high-tech products for export, to introduce high-tech into traditional industries and increase the added value of traditional export, to foster brand products and especially highlight a few key brands.
Article XV To further develop the markets in Europe and America, strengthen export market to Asia and positively open up markets in Africa, South America, Middle East, Russia and Eastern Europe.
Article XVI To organize and encourage strong enterprises or some enterprises with their own advantages to go abroad to set up sales agents or run companies, or to establish manufacturing and processing enterprises in the developing countries and develop some planting and breeding industries overseas.
IV. To actively explore some new approaches to foreign economic work in Changde.
Article XVII To strengthen foreign economic and technological cooperation to form a pattern of overall development for foreign investment, foreign trade and foreign economic structure. To encourage and support competitive enterprises to establish some oversea branches with various investment and operation modes.
Article XVIII To positively participate in contracting oversea projects. To support qualified enterprises to apply for foreign franchise or to contract oversea projects with other qualified enterprises.
Article XIX To take full advantage of human resources in Changde with sufficient training so as to increase the number of labor export and provide high-quality labor service for foreign enterprises or institutions.
Article XX To participate in foreign aid and technology export to promote export for related products and equipments and to work hard for oversea-assistance projects.
V. Preferential Policies
Article XXI Tax preferential policies
1. For production-oriented foreign-invested enterprises with operation period for more than ten years, from the year that the enterprises reap the benefits, the income tax will be exempted in the first two years. Only 50% of the income tax will be collected in the third to the fifth year.
2. For foreign investment enterprises with product export accounting for more than 50% of the total output, from the year that the enterprises reap the benefits, the income tax will be exempted in the first three years. Only 15% of the income tax will be collected in the fourth to the fifth year.
3. For advanced-tech enterprises from the year that the enterprises reap the benefits, the income tax will be exempted in the first three years. Only 50% of the income tax will be collected in the fourth to the ninth year.
4. For enterprises with foreign investment in agriculture, forestry, animal husbandry and its deep processing projects, from the year that the enterprises reap the benefits, the income tax will be exempted in the first three years. Only 50% of the income tax will be collected in the fourth to the sixth year. After approval, the income tax can be further reduced.
5. For enterprises with foreign investment in such infrastructure projects as transport, energy, urban water supply, sewage treatment, etc. the local income tax can be exempted.
6. Where a foreign investor of an enterprise with foreign investment uses its profits earned from the enterprise to directly reinvest into the enterprise for increasing its registered capital, or uses its profits as capital to invest and establish other enterprises with foreign investment with the operating period not less than five years, 40 per cent of the income tax amount already charged on the reinvested portion shall, upon the application of the investor and approved by the tax authority, be refunded therefore.
7. Enterprises with foreign investment in the accelerated depreciation of fixed assets required by enterprise applications, with the approval of the financial sector, allow accelerated depreciation.
8. Any fixed asset in foreign-invested enterprises surely needs to accelerate, when applied, the depreciation can be allowed for accelerated depreciation after approval of taxation organizations.
9. For foreign-invested enterprises engaged in agriculture and fruit industry in barren hills, barren slopes, barren land and neglected waters, the agricultural tax and special agricultural product tax can be exempted for three years and all taxes will be exempted from tax in two years for foreign-invested enterprises engaged in aquaculture and fishery, consistent with Changde’s development policies and regulations.
10. For production projects invested by foreigners, the administrative fares are permanently free at the city level; for projects other than the city level, the administrative fees are collected at the lowest scale; for foreign-oriented enterprises in Deshan High-Tech Industrial park, the administrative fares during the construction are free
Article XXII Land preferential policies
1. High-tech projects invested in Deshan High-Tech Industrial Park will enjoy special land preferential policy, namely, free from charge for land use right forever or for 40-50 years. All the offered lands are gross lands with electricity, water, roads, railways, water transport, sewage discharge, telecommunications, physical distribution, and the supporting facilities available.
2. High-tech projects, concerning key investment items in medicine, electronics, and other items with high employment and high taxation, invested in Changde but other than Deshan High-Tech Industrial Park, will not enjoy free-of-charge land but can enjoy preferential policies and the preferential maximum is expenses for land requisition, removal and compensation will be exempted at the city level, but are responsible for land use fares for new construction (which shall be handed over to the central and provincial governments).
3. General processing projects can also preferential policies that land transfer fare and all other expenses are exempted except for cost recovery of land requisition fares (including land compensation, land use fares for new construction, reclamation fare for cultivated land).
4. Investment in five projects, construction of scale agricultural projects agricultural products processing projects will enjoy the land preferential policies for high-tech projects other than Deshan high-tech industrial park. For investment in cultivation of barren land, barren hills, barren slopes, barren land and neglected waters, the land enjoyment fares will be exempted for five years and the land enjoyment right can be demised, subleased, pledged to other people legally or held shares by others during the fixed number of years.
1. In addition to investment from the state policies and donor funds, the awards include: 2% of actual the voluntary funds, 1% of actual paid interest-free funds; 0.5% of the paid interest-bearing funds with the annual interest rate equal to the interest rates of the same period; 1% of the actual performance of the contract amount on the projects of processing with provided material or sample, assembling with supplied parts. As for the referral, introduction or implementation of contracting foreign labor service projects, 0.5% of the contract amount will be rewarded by the specific organizer; for international assistance projects 2% -5% of the foreign assistance amount will be rewarded.
2. Introduction of talent personnel is encouraged and their unique patent or non-patented technology can be used for capital shares. If the new products have filled in the blank in China or within the province with a prosperous market potential, 15%of the annual profit will be extracted for the unit or for inPidual award after operation.
3. For the new industrial enterprises, after the completion of the project and reaping benefits, 30% of equivalent to the actual local profit from corporate income tax will be awarded to the introducing units in the five successive years for the purpose of increasing the employees’ income, supplementing office funds or rewarding persons attracting investment. The employee’s income may double according to the salary standard within the award amount.
4. The relevant departments shall fully support export enterprises and large export suppliers, e.g. to give privilege to the determination of the technology improvement and the loans needed. Banks shall give privilege to the credit funds needed for improvement of the product quality with good economic returns. Exchange earnings from its export products can directly repay foreign currency loans for imported equipment.
5. Where the private import-export business have committed and completed the export plan, RMB 0.02 yuan will be awarded every one US dollar export value. RMB 0.01 yuan will be awarded every one US dollar export value to the enterprises with no rights to operate import and export business authorizes those with the right to import and export.
6. Production of special equipments for export products may be approved for accelerated depreciation, with no products loss, the section added for the depreciation can be used for technical updating and transformation of the equipment loan modification or repay the loans.
7. For foreign investment within RMB 300–500 million yuan, or tax paid over RMB 1000-5000 yuan its investors can be recommended as deputies to the provincial People's Congress in Hunan, the CPPCC members in Hunan or deputies to the NPC or members of the National CPPCC. For investment over RMB 1 billion yuan, or tax paid over RMB 3milllion yuan its investors can be recommended as deputies to the People's Congress in Changde, the CPPCC members in Changde. Those with special contributions may be employed as senior economic advisers to the government, and honored as “honorary citizens” in Changde.
8. Investors with investment over RMB 10 million yuan will be issued by the city government, "one certificate, one license and one card", that is: Investor certificate, certificate of the investors’ legitimate rights and interests and the investment enterprises register payment card. The investors with the certificates shall enjoy the privilege for their children’s schooling.
VI. To Optimize Investment Environment And Strengthen Supervision And Auditing Mechanism
Article XXIV Government at all levels and all departments shall ensure the development of foreign-oriented economy as the top priority of our economic work. To make efforts to introduce and recommend Changde to the outside world to help the world know better about Changde.
Article XXV Governments at all level and all departments shall improve and implementing preferential policies and ensure a sound in service for the foreign investors to make the administrative affairs open to the public and make commitment to and keep track of their service to the enterprises .
Article XXVI To simplify approval procedures and improve efficiency. The Window in the City Administrative Center shall provide one-stop service for the approval of foreign-invested enterprises and complete the approval process for the applications with sufficient materials where consistent with the relevant laws and regulations.
Article XXVII To regulate charges and law enforcement by opening to the public the administrative fares and law enforcement main body, basis, procedures, work deadline and complaints means.
Article XXIII To establish and improve the assessment mechanism. The first-hands in every department are responsible for the invitation of foreign investment and give the development of export-oriented economy the top priority.
Article XXIV To strengthen the supervision examination, assessment and audition of the invitation of foreign investment and foreign trade.
VII. Supplementary Provisions
Article XXX All departments shall develop the implementation details according to the proposal.
Article XXXI Changde Bureau of Commerce and Changde Bureau of Foreign Investment Invitation are responsible for further interpretation of the proposal.
Article XXXII The proposal comes into effect from the day of promulgation.