Guangdong Province promulgated relevant policies to attract Foreign-Funds Enterprises

Recently, Guangdong Province promulgated a policy document that specifically aimed at attracting foreign investment, namely, "foreign 10". It mainly focused on some key issues which will be considered by foreign capital enterprises, especially the entering policy, land policy, tax policy and so on. Which is particularly noteworthy are the following: 1. To further expand the market access. It is to gradually push forward the opening up to the outside world in the manufacturing, service and financial sectors. 30% Restrictions on Foreign Investment has been opened. In Manufacturing Industries: will open the limitation about Special Vehicles, and expand foreign enterprises' shares on New Energy Vehicles Industry. In Service Sector: the limitation of foreign enterprises' shares on Ship Design, Branch Lines and General Aircraft Maintenance has been cancelled. In financial industry: will widen the restrictions the foreign enterprises' shares and business scope on foreign investment bank and Securities Company. 2. Financial incentives. In 2017-2022, the new projects (excluding real estate, financial and financial industry projects, the same below) the actual amount of foreign investment (excluding foreign shareholder loans) has more than $50 million; the capital increase projects which exceeded $30 million and the multinational corporations headquarters and regional headquarters which exceeded $10 million, the Guangdong province finance department will give awards that not less than 2% according to the actual amount of foreign capital on that year to the enterprise, the highest award is ?100 million.

Tanikawa （Sichuan）Technology Co., Ltd. was established

Recently, Tanikawa （Sichuan）Technology Co. Ltd. was officially established in Sichuan, located at ChuFeng International Center in Chengdu City and became another milestone after Horgos. It marked that we pay attention to the investment promotion for the western region. Only half a month, Tanikawa has established branches in Hubei and Sichuan. Faced with the rapid growth of investment demand in central and western regions, Tanikawa will provide high-quality and efficient overall investment solution planning for local governments and industrial parks, and provide assistance for the development of local industrial real estate through the establishment of information services. At the same time, with the arrangement of the Tanikawa in the Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei region, more high-quality projects will be delivered to the western region to provide new impetus to the regional economic development in the western region.

Policy to encourage foreign investment in Hubei

Encouragement given to foreign-invested enterprises to implement technological development and innovation as well as to enlarge the purchase of homemade equipment.·Foreign-invested enterprises and research centers will be exempt from import tariff and linking tax of self-application equipment, supporting technology, capital, auxiliaries, replacement parts within the total amount of investment·The increment value tax of homemade equipment will be fully returned and the income tax of the enterprise will correspondingly cancelled according to relevant regulations provided that the homemade equipment purchased by foreign-invested enterprises are within the total investment amount and are listed in the tax-free directory·The income of technological transfer of foreign-invested enterprises will be exempt from transaction tax·The income tax of foreign-invested enterprise will be offset according to 50% of the real amount of technological development that is over 10% higher than last yearImprovement of the management and service of foreign-invested enterprises·Foreign-invested enterprises that live up to certain terms can be listed in the exchange market of A stock and B stock·The operation scope of investing agency established by multinational corporations can be enlarged·The procedures for examination and approval of establishing foreign- invested enterprises will be simplified, namely, all the foreign- invested enterprises not involved in the projects of comprehensive encouragement will be examined and approved by provincial government·The value appraisal of imported equipment in foreign-invested enterprises will be cancelled·The policies, regulations and rules against the absorption of foreign investment will be eliminated or adjusted

Law of the People's Republic of China on Foreign-capital Enterprises

Article 1 These measures are formulated in accordance with the Regulations for the Implementation of the Law of People's Republic of China on Chinese-foreign Equity Joint Ventures of the People's Republic of China and the Provisions of the State Council on the Encouragement of Foreign Investment to simplify the procedures for application of import and export licenses so as to facilitate the business operations of the enterprises with foreign investment.Article 2 The enterprises with foreign investment shall apply for import licenses for equipment and other materials which are imported as investment of the foreign partners and require import licenses in accordance with the approved list of imported equipment and materials. The Chinese customs shall just examine the imported goods which do not require import licenses in accordance with the approved list of imported equipment and materials.Article 3 The enterprises with foreign investment may import without import licenses machinery and other equipment (including those requiring import licenses), vehicles necessary for production (referred to as trucks for transport, special vehicles and vehicles for both passenger and cargo transport purposes), raw materials, fuel, spare parts, accessories and components which are needed in export-oriented production, and the customs shall inspect and release them in accordance with the documents approved for the establishment of the enterprises, contracts or import-export contracts. These imported equipment, production vehicles, materials and accessories can only be used by the enterprise itself and cannot be sold or transferred in China, in special cases, if the imported raw materials and parts or the products manufactured with imported raw materials or of the parts are sold in China, the enterprises have to go through import formalities in accordance with Article 4.Article 4 The enterprises with foreign investment which need imports for the purpose of producing goods for domestic sales and domestic business transactions, must apply for import licenses every six months in accordance with the approved import plan if the equipment and vehicles for use in production, raw materials, fuel, spare parts, accessories and components to be imported are required for import licenses. The Chinese customs will examine and release those goods which do not require import licenses according to the documents and contracts approved for the establishment of the enterprises and the relevant contracts.Article 5 The provincial departments of foreign economic relations and trade shall be responsible for issuing the import licenses for the non-production goods, if such goods require import licenses and are imported in a reasonable quantity by the enterprises with foreign investment for their own use.Article 6 Enterprises with foreign investments to export their own made products which require export licenses, shall apply for export licenses every six months in accordance with the approved annual export plan.Article 7 If enterprises with foreign investment export that they produce and the exports do not need export licenses, the Chinese customs will examine and release the goods according to the export contracts and other relevant documents.Article 8 If enterprises with foreign investment export products which are not produced by themselves and require export licenses in order to ensure their foreign exchange balance of revenue and expenditure, export licenses will be issued in accordance with the approved documents. The Chinese customs will examine and release those products which do not require export licenses, according to the export contracts and other documents.Article 9 Enterprises with foreign investment may apply for import and export licenses to the relevant authorities in charge of issuing licenses, in accordance with the licenses categories at different levels announced by the Ministry of Foreign Economic Relations and Trade.Article 10 These measures shall enter into force as of the date of promulgation.

The Registration of Foreign Investment Enterprise

I. Establishment1. Establishment of Foreign-invested Limited Liability Company(1)Application for Registration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Approval Notification of Enterprise Name;(3)Contract & articles of association; Written reply by the governing authority;(4)Certification of Approval (duplicate 1);(5)Contract of house leasing (lease for more than one year ),and real estate certificate(6)Reference letter of foreign investors’ banking credibility;(7)Appointment letter of the members of Board of Directors & their valid ID copies;(8)Other pertinent documents and credentials.2. Establishment of Foreign-invested Limited Company by Shares(1)Application for Registration of a Foreign-invested Enterprise signed by the Legal Representative；(2) Approval Notification of Enterprise Name;(3) Written reply by Ministry of Commerce;(4) Certification of Approval (duplicate 1);(5) Minutes of the Founding Meeting;(6) Articles of Association;(7) Auditors' report on financial matters relating to the preparations for establishment of the company;(8)Capital Verification Report;(9) Certificate of the Legal Representative to hold the post, and his valid ID copy；(10)Directors, Supervisors & Managers’ certificate of their Appointment, Election or Engagement, and their valid ID copies；(11)Contract of house leasing (lease for more than one year ),and real estate certificate(12)Other pertinent documents and credentials.II. Registration of Alteration1. Alteration of Enterprise Name(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Approval Notification of Enterprise Name;(3)Resolution of Board of Directors;(4)Business License (original & duplicates);(5)Other pertinent documents and credentials.2.Alteration of Domicile(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Contract of house leasing (lease for more than one year ),and real estate certificate;(3)Resolution of Board of Directors;(4)Business License (original & duplicates);(5)Other pertinent documents and credentials.3. Alteration of Business Scope(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Written reply by the governing authority;(3)Certification of Approval (duplicate 1);(4)Resolution of Board of Directors;(5)Amendment of the contract & articles of association;(6)Business License (original & duplicates);(7)Other pertinent documents and credentials.4. Alteration of Total Investment & Registered Capital(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Written reply by the governing authority;(3)Certification of Approval (duplicate 1)；(4)Resolution of Board of Directors；(5)Amendment of the contract & articles of association；(6)Certificate of New investors’ Commencement issued by its local authority;(7)Reference letter of foreign investors’ banking credibility;(8)Business License (original & duplicates)；(9)3 Announcements in the newspapers; Statement on surety of credit & debit;(10)Other pertinent documents and credentials.5. Alteration of Legal Representative(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Resolution of Board of Directors;(3)Appointment letter, valid ID copy & Registration Form of Legal Representative;(4)Business License (original & duplicates);(5)Other pertinent documents and credentials.6. Alteration of Term of Operation(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Written reply by the governing authority;(3)Certification of Approval (duplicate 1)；(4)Resolution of Board of Directors;(5)Amendment of the contract & articles of association；(6)Business License (original & duplicates)；(7)Other pertinent documents and credentials.7. Transfer of Company Shares(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Written reply by the governing authority;(3)Certification of Approval (duplicate 1)；(4)Resolution of Board of Directors;(5)Amendment of the contract & articles of association；(6)Agreement on the Transfer of Company Shares；(7)Waiver of preemptive right by other investors;(8)Certificate of New investors’ Commencement issued by its local authority;(9)Reference letter of foreign investors’ banking credibility;(10)Business License (original & duplicates);(11)Other pertinent documents and credentials.8. Alteration form a Domestic-invested Enterprise to a Foreign-invested Enterprise(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Resolution of Shareholders;(3)Written reply by the governing authority;(4)Certification of Approval (duplicate 1)；(5)Contract & articles of association;(6)Agreement on the Transfer of Company Shares；(7)Waiver of preemptive right by other investors;(8)Approval Notification of Alteration by Domestic-invested Enterprise(9) Other pertinent documents and credentials.9. Alteration form a Foreign-invested Enterprise to a Domestic-invested Enterprise(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Resolution of Board of Directors;(3)Written reply by the governing authority;(4)Agreement on the Transfer of Company Shares；(5)Duty-paid proof by Tax Authority & Customs House;(6)Business License (original & duplicates);(7)Other pertinent documents and credentials.10. Alteration among Chinese-foreign joint venture, Chinese-foreign cooperative joint venture & Foreign-funded enterprise(1)Application for Alteration of a Foreign-invested Enterprise signed by the Legal Representative;(2)Resolution of Board of Directors;(3)Written reply by the governing authority;(4)Certification of Approval (duplicate 1)；(5)Amendment of the contract & articles of association；(6)Agreement on the Transfer of Company Shares or Agreement on the Termination of the Chinese-foreign cooperative contract；(7)Waiver of preemptive right by other investors;(8)Certificate of New investors’ Commencement issued by its local authority;(9)Reference letter of foreign investors’ banking credibility;(10)Business License (original & duplicates)；(11)Other pertinent documents and credentials.III Cancellation1． Application for Deregistration of a Foreign-invested Enterprise signed by the Legal Representative;2．Resolution of Board of Directors;3．Written reply by the governing authority;4．Duty-paid proof by Tax Authority & Customs House;6．Liquidation report proved by Board of Directors;7．Business License (original & duplicates), the chop;8．Other pertinent documents and credentials.IV. Filing1. Alteration of Association(1)Application for Filing of a Foreign-invested Enterprise signed by the Legal Representative;(2)Resolution of Board of Directors;(3)Written reply by the governing authority;(4)Copy of Business License;(5)Amendment of the contract & articles of association；(6)Other pertinent documents and credentials.2.Alteration of Board members(1)Application for Filing of a Foreign-invested Enterprise signed by the Legal Representative;(2)Appointment letter of the members of Board of Directors & their valid ID copies;(3)Copy of Business License;(4)Other pertinent documents and credentials.3.Pledge of Company Shares(1)Application for Filing of a Foreign-invested Enterprise signed by the Legal Representative;(2)Written reply by the governing authority；(3)Resolution of Board of Directors;(4)Agreement on Pledge of Company Shares;(5)Statement of other investors on their consent of pledge;(6)Copy of Business License;(7)Other pertinent documents and credentials.4.Mortgage of Real Estate of the Foreign-funded Enterprises(1)Application for Filing of a Foreign-invested Enterprise signed by the Legal Representative;(2)Written reply by the governing authority；(3)Resolution of Board of Directors;(4)Agreement on Mortgage of Real Estate of the Foreign-funded Enterprises;(5)Copy of Business License;(6)Other pertinent documents and credentials.

Henan Free Trade Zone’s Core Mission Is to Serve “The Belt and Road”

April 1.When China(Henan)Pilot Free Trade Zone is officially established,Henan Pilot Free Trade Zone(hereinafter referred to as“Henan Free Trade Zone”)will have its strategic targets,positioning,functional division officially released.Centering on the building of a modern integrated transport hub serving“The Belt and Road”,Henan will deliver a good performance in strengthening its function as a hub,making a big push to develop multimodal transport,speeding up the simplification of customs clearance procedures and the development of pivotal economy…these are the key directions in which Henan Free Trade Zone should put efforts.In these directions,what changes will take place when Henan Free Trade Zone is successfully established and put into operation?According to some analysis, Henan will meet a big wave of policy-related bonuses for economic development:streamlined administrative services,economic management decentralization;lowered thresholds for foreign investment,and convenience of“going out”In my opinion,apart from the above bonuses,the free trade zone will bring about deeper development advantages.First of all,the areas of reform get wider. The free trade zone turns from a pilot free trade zone in a narrow sense into a pilot comprehensive reform zone.Therefore,both the scope and the contents of reform are wider. Henan Free Trade Zone,in particular,takes on not only the task of spreading relevant successful practices of the first and second batches of free trade zones,but also the new tasks of exploration into,including guidance of the transformation and development of inland economy.In addition,the range of linkage becomes broader. Take Henan Free Trade Zone as example.According to the programs released this time and the relevant documents launched by the State Council before, Henan Free Trade Zone will be coordinated with the national strategies like“The Belt and Road”,“the Rise of Central China Plan”,etc.,and with Shanghai Free Trade Zone.The free trade zone now has formed a“137”flying-geese development model,which will strengthen and accelerate Henan’s multi-faceted development linkage.Third,the level of opening up is higher. In my opinion,according to the programs of Henan Free Trade Zone,not only the areas opened for foreign investment will become more,but also the openness and transparency will further increase,and the forms of cooperation will get more diverse.This new stage of opening up matches better Henan’s goals of quality improvement,transformation,upgrading and development.Forth,the development and transformation of industries are more precise. Featuring more precision,Henan Freed Trade Zone’s programs are more aligned with the development level and transformation direction of Henan.Active development of the high-end manufacturing sector and modern service sector,especially stressed in the programs,will give new impetus to Henan’s quality improvement,transportation,upgrading and development.With the establishment of Henan Free Trade Zone,the 11 free trade zones nationwide jointly form a new all-round,high-level opening-up pattern balancing the East,Middle and West zones and coordinating development of land and sea.Every free trade zone has its own core goal.Closely centering on“The Belt and Road”,Henan needs to create an industrial system serving the integrated transport hub of“The Belt and Road”,in addition to building a modern integrated transport hub serving“The Belt and Road”.The programs assigned a particular task to Henan Free Trade Zone:driving industrial development by logistics development and building overseas economic and trade cooperation parks along the routes of“The Belt and Road”.The core goal indicates the development direction for China(Henan)Free Trade Zone.Henan will play a more important role in“The Belt and Road”,so that there will be much more experience awaiting exploration and innovation in this respect.