Instant Button
Instant Button
Instant Button
Instant Button
Instant Button
Instant Button
Instant Button
Instant Button
Instant Button
Instant Button
Instant Button


REGULATIONS FOR SHANGHAI ECONOMIC AND
TECHNOLOGICAL DEVELOPMENT ZONE

(Approved by 4th Session of the Standing
Committee of the 9th Shanghai Municipal People's Congress)

 

 

 

SUBJECT: ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONES

ISSUING-DEPT: SHANGHAI MUNICIPALITY

ISSUE-DATE: 01/01/1989

IMPLEMENT-DATE: 01/01/1989

LENGTH: 1644 words

TEXT:

CHAPTER I GENERAL PRINCIPLES

[Article 1] With a view to opening wider to the outside world, promoting foreign economic and technical cooperation and trade, and accelerating the construction of Shanghai Economic and Technological Zone, and in accordance with the relevant laws and decrees of the People's Republic of China and proceeding from the concrete conditions of this city, these Regulations are formulated.

[Article 2] The Regulations are applicable to all economic and technological development zones (hereinafter referred to as ETDZ) in Shanghai approved by the State Council of the People's Republic of China.

[Article 3] ETDZ shall, in accordance with the Shanghai strategy for economic development and the city's overall planning, focus on absorbing foreign capital to develop new technology and industries and establishing technologically advanced enterprises and export-oriented enterprises.  Places for the conduct of international trade, finance and foreign affairs activities, apartment estates and other service projects can also be built in accordance with the needs.

[Article 4] Relevant departments and units in the city shall provide good production and business conditions for the investors in the ETDZ and work constantly to improve the supply of water, power and gas, the sewage system, telecommunications, the highway system, storage, transport and daily life services and other basic installations and service facilities.

[Article 5] The investment, property, benefits and other legal rights of the investors in the ETDZ are protected by the law of the People's Republic of China.

The enterprises, units and individuals in the ETDZ shall abide by the laws and decrees of the People's Republic of China and shall not encroach upon the social and public interests.

CHAPTER II ORGANIZATION AND MANAGEMENT

[Article 6] The department in charge of foreign investment under the Shanghai municipal people's government is the administrative department of the ETDZ which exercises the following rights in the ETDZ:

a.  Formulate and revise the development programs for the ETDZ and upon approval by the municipal people's government work to implement them;

b.  Formulate the promulgate concrete administrative rules for the ETDZ;

c.  Examine and approve the investment projects in the ETDZ within defined power;

d.  Examine, supervise and coordinate the construction of infrastructure and the supply of water, electrical power, gas, telecommunications and other public utilities;

e.  Examine, supervise and coordinate the workings of the local branches established in the ETDZ of Shanghai's relevant departments and other units;

f.  Coordinate and solve the problems in construction and management concerning the projects int the ETDZ; and

g.  Other rights given by the municipal people's government.

[Article 7] Apart from the rights granted to the administrative department in the ETDZ as stipulated in Article 6 of the Regulations, the departments of the municipal or district people's government in the ETDZ which are assigned to take charge of infrastructure, land, real estate, environmental protection, public security, fire fighting, culture, education, public health, afforestation, birth control and other work will be held responsible for their respective duties likewise.

[Article 8] In accordance with the development plan approved by the municipal people's government, the corporations in the ETDZ shall be responsible for the construction of infrastructure and the management of land and real estate in the ETDZ and assist investors in establishing enterprises and serve as a liaison for the supply of water, electrical power and gas and the service of telecommunications and other public utilities.

CHAPTER III INVESTMENT AND MANAGEMENT

[Article 9] Foreign corporations, enterprises and other economic organizations and individuals are encouraged to invest in the ETDZ, establish enterprises using foreign investment or invest or do business in other legitimate forms.

Domestic enterprises and other economic organizations can also establish independent enterprises or joint ventures in the ETDZ.

[Article 10] To invest in the ETDZ, all investors shall apply and be examined and approved as required by the State and municipal regulations.

[Article 11] If the foreign investment enterprises wish to use land in the ETDZ, formalities must be done in accordance with relevant State and municipal rules on use and administration of the land.

[Article 12] The foreign investment enterprises shall open accounts at financial institute approved by the Chinese People's Bank.  Those who wish to open accounts in financial institutes overseas or in Hongkong or Macau will have to ask for approval in advance by the State foreign exchange control departments.

[Article 13] The foreign investment enterprises shall establish a complete ledger system within the territory of Shanghai, conduct independent accounting, provide accounting forms as required by relevant rules and are subject to supervision by the financial and taxation departments.

[Article 14] The enterprises in the ETDZ shall conduct their business within the scope of business as approved by the registry departments.

[Article 15] The foreign investment enterprises in the ETDZ have the right to independently formulate their production and business plans within the scope of the contract ratified; to collect and use funds; to purchase means of and to market products.

[Article 16] The foreign investment enterprises in the ETDZ can, in accordance with the needs of production and business, independently determine their administrative structure, staff, wages, the forms of payment and the award and bonus system.

Staffs of the foreign investment enterprises are employed in accordance with relevant State and municipal regulations on labor and personel management in such enterprises.

[Article 17] The foreign investment enterprises in the ETDZ shall, in accordance with relevant State and municipal regulations on environmental and labor protection, adopt practical and effective measures to prevent environmental pollution and ensure that the workers and staff work under safe and hygenic conditions.

[Article 18] The workers and staff working at the enterprises in the ETDZ, in accordance with the law, can establish grass-roots trade union organizations and carry out trade union activities.  The legal rights of the workers and staff shall be protected.

[Article 19] If the enterprises in the ETDZ close down or disband, they shall report reasons to the departments that have originally granted the approval for business and go through procedures as stipulated.

CHAPTER IV PREFERENTIAL TREATMENTS

[Article 20] In addition to the preferential terms stipulated by the State and the municipality, the foreign investment enterprises in the ETDZ also enjoy the preferential treatments as defined in the these Regulations.

Except for the preferential treatment of reduction of and immunity from taxation that has to be approved by the State, the domestic enterprises established in the ETDZ upon approval shall enjoy other preferential terms as stipulated in these Regulations.

[Article 21] The productive foreign investment enterprises in the ETDZ shall be exempt from the local income tax till the end of 1995.

[Article 22] The houses built, or new houses purchased, by the foreign investment enterprises in the ETDZ are exempt from the housing and land tax for five years, beginning from the month of completion of purchase.

[Article 23] The foreign investment enterprises in the ETDZ that have difficulty in paying the tax as defined may, upon application by the enterprises in question and approval from taxation departments, pay at a reduced rate or be immuned from the consolidated industry and commerce tax.

[Article 24] The foreign investment enterprises in the ETDZ that are in need of short-term circulating funds in production and circulation shall be guaranteed of such loans upon examination and approval by the account bank or other financial institutes, and have the priority to get other credit funds.

[Article 25] The foreign businessmen, according to the unified planning, can invest in land development, engage in infrastructural development and housing business in the ETDZ.

The foreign investment enterprises engaged in the infrastructural development in the ETDZ shall enjoy the preferential treatments as the productive enterprises.

[Article 26] Bonded warehouses can be established in the ETDZ to serve the enterprises established inside or outside the territory of the ETDZ.  Transit trade-oriented bonded warehouses and bonded processing areas can alse be established upon the approval from the State governing organs.

CHAPTER V APPENDIXES

[Article 27] The present Regulations can also be applicable to the enterprises in the ETDZ funded by overseas Chinese, Hongkong, Macau or Taiwan corporations, enterprises or other economic organizations or individuals.

[Article 28] The provision of land and houses to foreign consulate organs or international organizations concerned is done in accordance with the relevant rules promulgated by the Foreign Ministry of the People's Republic of China and the Office of Foreign Affairs of the Shanghai municipal people's government.

[Article 29] The corporations in the ETDZ stated in the present Regulations refer to the economic entities approved by the Shanghai municipal people's government and engaged in the development and management of the ETDZ.

[Article 30] The present Regulations come into force as of January 1, 1989.