Land use:

The provincial government will give preferential consideration to land use quotas for the industrial corridor and will set the benchmark land use fee in the corridor.

Land earmarked for traditional industrial complexes can be rented and charged at only 70 per cent of the benchmark price.

Land set aside for high-tech firms is eligible for further discounts. Enterprises with financial difficulties can pay their land use fees in instalments.

Fiscal and taxation:

Enterprises housed in the industrial corridor are entitled to enjoy a central government and provincial government-endorsed favourable taxation policy.

Provincial government-run special industry funds such as a high-tech fund and a green agriculture development fund will extend preferential financial support to projects planning to set up in the industrial corridor.

Governments will scrap administrative fees for any new projects or for extended projects.

It will also stop collecting some other previously mandatory government.

The provincial government is encouraging enterprises in the industrial corridor to expand their exports. Businesses exporting to Russia can enjoy rewards and incentives granted by the provincial government.

Human resources:

The government will grant subsidies to enterprises that send senior staff members for training at domestic or overseas universities or at multinational companies.

Engineers, patent-holders or companies can get financial support from a special provincial high-tech industry fund if they set up firms in the industrial corridor. And if they want to conduct further research, they can also get preferential financial support from the government.

High-tech firms are entitled to use stock options and other incentive programmes to reward management or engineers who have made outstanding contributions to the company.

Technicians or researchers who use their discoveries or patents as equity stakes in the company are entitled to get as much as 70 per cent of the whole stake.

Other favourable policies are also available.

Investment policy:

The provincial government has the authority to approve any kind of investment projects in sectors that are permitted or encouraged by the central government.

Administrative approval procedures in the industrial corridor will be streamlined.

Except for the environment, work safety and fire, all administrative approval procedures will be scrapped for any new projects or for those which are undergoing expansions.

The provincial government is working on a financing plan, trying to get favourable financial support from the National Development Bank, a policy lender focused on infrastructure projects, to finance infrastructure construction in the industrial corridor.

A one-stop-shop style administrative approval service centre will be set up to make the process as efficient as possible for investors.

(China Daily 11/06/2006 page9)