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Policies and Measures of Guangdong Province on Further Expanding Opening-up and Actively Attracting Foreign Direct Investment(Revised Edition)

2018-09-13 17:20:00  GDCOM

  Note: In case of discrepancies in the English and translations, please note that the original Chinese text is the official text and shall prevail. Any questions concerns about the content please contact the Department of Commerce of Guangdong Province.  

  No.  Document of the People's Government of Guangdong Province in 2018.  

  Notice on Printing and Distributing Policies and Measures of People's Government of Guangdong Province on Further Expanding Opening-up and Actively Attracting Foreign Direct Investment (Revised Edition) 

  People's governments at or above the prefecture-level cities, people's governments at all counties (cities and districts), all departments and organizations directly under the provincial government:     

  In order to implement the spirit of Notification of the State Council on Measures of Actively and Effectively Attracting Foreign Direct Investment to Promote High-Quality Economic Development (No. 19 document by the State Council in 2018) and the provincial party committee's requirements for accelerating the formation of a new pattern of comprehensive opening-up, and further promote the steady growth of foreign investment, the provincial government has revised the Policies and Measures of Guangdong Province on Further Expanding Opening-up and Actively Attracting Foreign Direct Investment (issued as No.125 document by the People’s Government of Guangdong Province in2017). Here enclosed is the document for your earnest implementation. Any problems encountered in the implementation process, please be free to report to Department of Commerce of Guangdong Province.  

    

  People's Government of Guangdong Province

  2018

    

  Policies and Measures of Guangdong Province on Further Expanding Opening-up and Actively Attracting Foreign Direct Investment(Revised Edition) 

  In order to thoroughly study and earnestly implement the Thought on Socialism with Chinese Characteristics for a New Era by President Xi Jinping and the spirit of the 19th National Congress of the Communist Party of China, and implement the Notification of the State Council on Measures of Expanding Opening-up and Actively Attracting Foreign Direct Investment (No. 5 document by the State Council in 2017) and the Notification of the State Council on Several Measures of Promoting Foreign Direct Investment (No. 39 document by the State Council in 2017) and the Notification of the State Council on Measures of Actively and Effectively Attracting Foreign Direct Investment to Promote High-Quality Economic Development (No. 19 document by the State Council in 2018), the province hereby formulates the following policies and measures for furthering active and effective attraction of foreign direct investment to promote the province's high-quality economic development by achieving a high level of opening-up. 

  I.Further Expand Areas of Foreign Investment Market Access. To comprehensively implement the Special Management Measures for Foreign Investment Access (Negative List) (2018 Edition), the province supports the establishment of wholly foreign-owned enterprises in the following areas, including special vehicles manufacturing, new energy vehicles manufacturing, ship design, manufacturing and repair, design, manufacturing and repair of trunk lines, branch lines and general-purpose aircraft, design and manufacturing of helicopters of 3 tons and above, design and manufacturing of drones and aerostats, construction and operation of gas stations, international maritime transportation, railway passenger transportation, etc; To cancel the restrictions on foreign equity limit of Chinese banks and financial asset management companies established in Guangdong, support foreign banks to set up branches and sub-branches in Guangdong at the same time; To support foreign investment to establish joint venture securities companies, securities investment fund management companies, futures companies, life insurance companies in Guangdong and the foreign equity ratio shall not exceed 51%. To Support foreign natural person investors working in Guangdong to open A-share securities accounts. To deepen the openinging-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 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 regional headquarters of foreign-funded transnational companies with more than $10 million dollars will be rewarded not less than 2% of its actual foreign investment of the year by the provincial financial funds, the highest reward can be 100 million Yuan. For the Fortune Global 500 enterprises (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 the provincial financial contribution, with a maximum award of 100 million Yuan. From 2018 to 2022, for the reinvestment projects in Guangdong by foreign-funded enterprises using profits they made in China, the province will reward such enterprises according to their contributions to the provincial finance to support their expansions in Guangdong and investment in Guangdong encouraged projects. 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 as required in Policies and Measures on Decreasing the Cost of Manufacturing Enterprises and Supporting the Development of Real Economy of Guangdong Province (Revised Edition). 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 Top 500 Global Companies and leading enterprises in different 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. For major foreign-funded projects that meet the conditions of Incentive Measures for Major Industrial Project Plan Indicators in Guangdong Province, the province will reward with land use indicators according to the corresponding standards; for major foreign-funded projects that have an investment greater than 2 billion Yuan and meet the investment intensity requirements and complete the land provision procedures, the province will fully reward land use indicators. If major foreign-invested projects are introduced in various places but there are insufficient indicators for land use in the current year, they may apply to the province for advance-reward incentive plan indicators. For high-standard factory buildings and industrial buildings constructed by national development zones, provincial-level development zones, and industrial transfer zones (industry transfer clusters), after the local governments confirm that the floor area ratio exceeds 2.0 and making application, the land used plan indicators will be returned by the provincial land and resources authorities. High-standard foreign-invested factories, industrial buildings and property rights of the self-built offices by key foreign-funded headquarters will be allowed for separate registration and assignment by 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 lease term correction coefficient when being sure of the basic lease price according to the specific value between its lease term and available maximum term; The lease contract and payment voucher signed with land department can used for transacting planning and reporting procedures; During the lease term, the above-ground buildings, structures and ancillary facilities can be subleased and mortgaged. The government has implemented the reconstruction of the old city, which can be negotiated or leased to rearrange the industrial lands for foreign industrial projects that need to be relocated. The foreign manufacturing enterprises utilize the stock industrial real estate to develop productive service industry and establish spaces for makers and innovation workshops can use the land according to the original purposes and types of land use within 5 years, and transact in accordance with relevant provisions after the expiration of five years. Such public service projects as medical treatment, education, culture, pension, sports, etc. jointly funded by foreign investment and government that can use allotted land is allowed to supply state-owned construction land through investment or shares buying. 

  IV.Support the R&D and Innovation. To support foreign R&D institutions (including R&D institutions set up within 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 designated as new research and development institutions by Department of Finance of Guangdong Province can receive a maximum subsidy of no more than 10 million Yuan; those recognized as postdoctoral workstations and bicameral academician workstations can receive a maximum subsidy of 1 million Yuan. The highest subsidy for approved innovation platform construction project of the provincial enterprise technology center is 2 million Yuan. The Top 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 which boast independent legal person qualifications in Guangdong. Strengthen the government procurement and support for pilot of 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 into the list of provincially innovative products. The foreign medicine marketing authorization holder are encouraged to produce and settle the new first-class national medicines of the large varieties in Guangdong Province and 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 recognized foreign research and development centers that import technology development supplies will be exempted from tariff, import value-added tax and consumption tax, as well as be refunded the value-added tax when purchase domestic equipment. The foreign R&D centers can willingly choose the mode of advance inspection, booking customs clearance and articles release when import equipment, reagents and samples for research and development. To allow the foreign investment research and development centers to bonded import the key second-hand research and development equipment (with a term of entry no more than one year) and high value patent and first (set) major technical equipment insurance compensation mechanism shall be established. 

  V.Intensify Financial Support. To utilize the Guangdong Industry Development Fund and give key support to global top 500 enterprises, global industrial leading enterprises and major multinational M&A project to carry out round-trip investments through equity investment with ways like equity investment. To explore financial management and service innovation in Guangdong Pilot Free Trade Zone, support the enterprises with foreign investment in Guangdong Pilot Free Trade Zone to conduct fully cross-border financing for 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; lower the access threshold of cross-border capital pool; support transnational enterprise groups engaging in real economy to establish cross-border RMB capital pool; To apply for the pilot qualification to the State Administration of Foreign Exchange for the business of operating and leasing foreign currency rent such as aircraft and vessels. To support the foreign-invested lease finance company in Guangdong Pilot Free Trade Zone to conduct foreign currency settlement business;  Support foreign-funded enterprises to carry out the business of qualified overseas limited partners, and copy and promote them in the province in due course and carry out trials on the bundled collateral financing of intellectual property rights. Encourage local governments to promote the “loan + guarantee insurance / guarantee + financial risk compensation” patent pledge financing model. Foreign-invested enterprises enjoy the same support policies for the listing of private enterprises, the listing of “new three boards” and the financing of regional equity markets. 

  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 who come from the Mainland China are regarded as the registered permanent residence of the city, and enjoy the same preferential policies in personnel housing, education, medical treatment and old-age care. They can apply for a commercial endorsement (or business certificate) for Hong Kong and Macao in Guangdong, and their spouses and minor children may also apply for other entry and exit documents in Guangdong. 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 limit of business transaction will be promised to be less than 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. The designated foreign high-level talents can enjoy the convenient measures such as entry and exit, residence and employment of foreign homemaking workers. The high-level overseas returned talents who have come back 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 Free Trade Zone. 

  VII.Reinforce Intellectual Property Protection. To speed up the construction of China (Guangdong) Intellectual Property Protection Center, and establish and improve the mechanism for the rapid examination, confirmation and protection of legal rights. To introduce the system of intellectual 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 trans-department intellectual property case transfer, information notification and cooperation investigation mechanism. To strengthen special law enforcement of trademarks and strictly protect exclusive right to use trademarks for foreign invested enterprises. To establish an international intellectual property rights trading center, improve the work mechanism for patent-navigated industrial development 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 intellectual property rights, risk sharing mechanism for pledge financing and rapid processing mechanism for hostage. To encourage foreign-invested enterprises to apply for and implement patents in China, whose inventions, discoveries and other scientific and technological achievements made in Guangdong may be involved in the evaluation of various awards at all levels in Guangdong Province. 

  VIII.VIII Improve the Level of Investment and Trade Facilitation. Comprehensively implement the pre-establishment national treatment plus negative list management mode. Implement the “multi-certification integration” reform and “one window processing” of business registration and industrial and commercial registration of foreign-invested enterprises outside the Negative List. 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. Reduce the time for setting up a foreign-invested company to within 5 business days. To delegate the power of establishing foreign-invested enterprises and changing record to the commercial departments at prefectural (municipal or regional) levels. The establishment and change of foreign-invested enterprises in the negative list with a total investment of less than US$1 billion shall be entrusted to the local governments for approval and management. 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. The business registration “Bank Securities Express” service will be expanded to countries and regions along the “Belt and Road” ,and promote the local registration of foreign investors and remote processing. Simplify the materials which Hong Kong and Macao investors who plan to invest in Guangdong should submit, and carry out a pilot version of the simplified version of the commercial registration notarial documents. To allow head offices and branches of foreign-invested enterprises that carry out trans-regional operation in Guangdong Province and have independent legal person qualification to pay VAT on a consolidated basis and their branch offices can pay it locally. To optimize the approval process of the flexible working hour system and comprehensive calculation working hour system, and reduce the time limit of business transaction by a third of the legal time limit. To positively explore the entrusted system of administrative approval for major foreign-invested projects 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". To support to include the management of provincial development zones in the eastern, western and northern parts of Guangdong Province into provincial industrial transfer parks, and 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 Hengqin 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 transfer parks (industrial transfer clusters) 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 will be submitted to the provincial government. 

  X.Improve the Mechanism for Foreign Direct Investment. To establish foreign investment attraction work coordination mechanism led by the main leadership of provincial and municipal governments, improve the "Through Express" mechanism in which the provincial governor could contact the multinational company directly, coordinate and solve the key issues that restrict foreign investment attraction at regular intervals, especially the World Top 500 enterprises in Guangdong. At the same time, establish a provincial joint conference on utilization of foreign capitals and implement the "one discussion for one project" mechanism of key foreign projects. 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 and perfect the foreign-funded enterprise complaint and handling platform. It will standardize investment attraction in various cities, strictly fulfill 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 plan, and to support for priority clearance procedures.    

  All cities and departments must fully understand the importance of actively and effectively utilizing foreign capital to accelerate the formation of a comprehensive new opening pattern in Guangdong and strive to achieve the "four in the forefront of the country", further increase efforts and promote the implementation of various policies and measures. Relevant departments of the province should revise relevant implementation rules within 3 months. All cities should revise the policy measures within 3 months combined with practice. 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 person accountability to the cities, departments and relevant responsible persons of incompetence.