REGULATIONS OF PREFERENTIAL TREATMENTS ON ENCOURAGEMENT OF
FOREIGN BUSINESSMEN TO INVEST IN THE ECONOMIC AND TECHNOLOGICAL
DEVELOPMENT ZONE OF QINHUANGDAO MUNICIPAL PEOPLE'S GOVERNMENT

(Issued on November 22, 1986)

 

 

 

SUBJECT: ENTERPRISES WITH FOREIGN INVESTMENT

ISSUING-DEPT: HEBEI PROVINCE

ISSUE-DATE: 11/22/1986

IMPLEMENT-DATE: 11/22/1986

LENGTH: 777 words

TEXT:

To further encourage the investment of foreign businessmen, import advanced thechnology, increase foreign exchange earnings through export and speed up the economic development in the economic and technological development zone, besides implementing the Provisions of the State Council on the Encouragement of Foreign Investment, these eight special preferential treatments are formulated for implementation by Chinese-foreign equity joint ventures, contractual joint ventures and foriegn wholly-owned enterprises (hereinafter referred to as enterprises with foreign investment) in Qinhuangdao Municipality.

1.0 The local income tax of enterprises with foreign investment is reduced or exempted.0 After implementing the necessary formalities, partial consolidated industrial and commercial tax, enterprise income tax may be reduced or exempted.

2.0 The land development fee and land use fee are exempted during the period of construction of enterprises with foreign investment.0 For enterprises producing export-oriented products and enterprises with advanced technology (hereinafter referred to as "two kinds of enterprises," which are to be constructed in 1987 or 1988, the land development fee and land use fee will be RMB 2.5 Yuan per square metre annually in the first two years after going into production.0 The insufficient part will be subsidized by the finance of Qinhuangdao Municipality.0 After 1988, the land development fee and land use fee of the "two kinds of enterprises" will be collected according to the regulations of the State.

Enterprises with foreign investment will be given priority in obtaining water, electricity, gas and heat which they need, and the charges will be the same with the standards for local state enterprises.

3.0 By participating in the operation of financial market of funds, the Development Company of the economic and technological development zone will be responsible for and partially or wholly handle the loans for short-term working funds needed for production and distribution, as well as for other needed credit of enterprises with foreign investment.

The Material Supply Company in the economic and technological development zone will coordinate and supply materials needed by enterprises with foreign investment for production; if a material supply base is needed to be established by an enterprises with foreign investment, the development company of the economic and technological development zone will help the enterprises to do so through internal association and consultation with other areas.

4.0 Enterprises with foreign investments are allowed to mutually adjust their foreign exchange surpluses and deficiencies among themselves.0 For enterprises of Bank of China, they will be given priority in using foreign exchange after performing necessary formalities, when their foreign exchange revenue and expenditure do not balance and the profit of foreign investors is unable to be remitted abroad.

5.0 The capital construction project of enterprises with foreign investment will be charged according to the standard of project in Qinhuangdao Municipality, and these projects will be guaranteed as key projects of Qinhangdao Municipality.

6.0 Formalities of approving enterprises with foreign investment are simplified.0 Enterprises with foreign investment are only under Economic and Technological Development Zone Administrative Commission, all matters will be coordinated and handled by the latter.0 Projects within the approving authorization of Qinhuangdao Municipality will be replied by the special organ established by the Economic and Technological Development Zone Administrative Commission within 15 days upon the receipt of the document applying for approval.

7.0 Enterprises with foreign investment will be given full autonomy on production management and personnel arrangement, the board of directors will determine by itself recruiting and employing the management personnel and workers, levels and forms of wages, bonuses and allowance system as well as the dismissal of staff and workers.0 All these will only be submitted to the Economic and Technological Development Zone Administrative Commission for the record.0 No other performance of applying for approval is needed.

Foreign businessmen are allowed to employ their relatives in China to work in their invested enterprises, and upon approval, their relatives may settle down in Qinhuangdao Municipality.

8.0 After being approved by the Economic and Technological Development Zone Administrative Commission or going through the necessary formalities, the depreciation of the fixed assets may be accelerated