Page 442 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
· In 2016, regional GDP totaled RMB1.961 trillion, equity investment enterprises. The city has established
ranking third in the country, trailing Shanghai and Beijing. a PE Development Fund (PEDF) and clarified operation
procedures for PE funds that intend to apply for financial
· Among the highest in the country, average support from the PEDF. Incentives offered to PE funds
monthly wages in Guangzhou grew to RMB7,425 in include: rewards for local financial contributions, office
2016. Guangzhou’s monthly minimum wage rose by purchase and rental subsidies, one-time settlement
22.3 percent from RMB1,550 to RMB1,895 in 2015 – rewards, and one-time rewards for investment
the second highest in the province behind Shenzhen. withdrawal.
Meanwhile, the city’s minimum hourly wage increased
from RMB15 to RMB18.3. E-Commerce Promotion
Guangzhou’s strength in foreign trade is evident in the In September 2009, Shenzhen was approved by
following figures (from Guangzhou Statistical Report 2016): China’s NDRC and Ministry of Commerce (MOFCOM)
to become China’s first “e-commerce model city”. In
· Total exports rose by three percent year-on-year to addition to streamlining registration processes for
RMB518.7 billion e-commerce companies, the city has made other efforts
to promote the development of e-commerce. One
· Guangdong realized an import value of RMB337.99 example is the building of dedicated industrial parks,
billion, increased 3.3 percent since last year. such as Futian International E-commerce Industrial
Park, which opened in 2009 and houses more than 150
In particular, trade between Guangzhou and newly internet and e-commerce companies.
emerging markets, including Latin America, the Middle
East and Africa, has increased greatly in recent years. Qianhai Shenzhen-Hong Kong Modern
Services Cooperation Zone
Spotlight on Shenzhen Government
Innovation One state-level project being developed in Shenzhen
is the Qianhai Shenzhen-Hong Kong Modern Services
Shenzhen’s government has taken the lead on a Cooperation Zone, approved by the State Council in
number of new initiatives to become the national June 2012. By the end of March, 2017, around 133,000
leader in innovation and private enterprise growth. The companies with a combined registered capital of
city has experienced rapid private economic growth, RMB4.839 trillion had already registered in the zone.
spawning about 1,083,063 private companies, including As a JV between Hong Kong and Mainland China, and
international giants such as Huawei Technologies Co., supported by the State Council, the Qianhai Zone is
Ltd., Tencent Holdings Ltd, China Vanke Co., Ltd., and designed as an experimental business zone for better
BYD. Available incentives include a recent VAT exemption interaction between the two jurisdictions’ financial,
policy and a 50 percent CIT exemption for qualified small logistics, and IT services sectors. It covers slightly less
and micro-sized enterprises. The government has also than 20 square kilometers on the western side of
adopted specific measures in terms of equity investment Shenzhen, and is expected to achieve a GDP of RMB150
incentives, e-commerce promotion, and the introduction billion by 2020.
of electric vehicles. Lastly, as part of a pilot program
to curb emissions of key pollutants and clean up the Among its many goals, the Qianhai Zone will serve
environment, foreign investors are now permitted to as a pilot area for the liberalization of China’s financial
trade carbon permits in Shenzhen. sector as a whole, including preferential policies such as:
Equity Investment Incentives · Allowing the Qianhai Zone to explore the expansion
of offshore RMB flow-back channels, and establish an
Private equity (PE) investment has emerged as one innovative experimental zone for cross-border RMB
of the most important capital-raising avenues for small transactions;
and medium-sized enterprises. Recognizing this, the
Shenzhen government has become one of several · Supporting the granting of RMB loans for offshore
coastal city administrations to offer further incentives to projects by banking institutions established in Qianhai;
442
· In 2016, regional GDP totaled RMB1.961 trillion, equity investment enterprises. The city has established
ranking third in the country, trailing Shanghai and Beijing. a PE Development Fund (PEDF) and clarified operation
procedures for PE funds that intend to apply for financial
· Among the highest in the country, average support from the PEDF. Incentives offered to PE funds
monthly wages in Guangzhou grew to RMB7,425 in include: rewards for local financial contributions, office
2016. Guangzhou’s monthly minimum wage rose by purchase and rental subsidies, one-time settlement
22.3 percent from RMB1,550 to RMB1,895 in 2015 – rewards, and one-time rewards for investment
the second highest in the province behind Shenzhen. withdrawal.
Meanwhile, the city’s minimum hourly wage increased
from RMB15 to RMB18.3. E-Commerce Promotion
Guangzhou’s strength in foreign trade is evident in the In September 2009, Shenzhen was approved by
following figures (from Guangzhou Statistical Report 2016): China’s NDRC and Ministry of Commerce (MOFCOM)
to become China’s first “e-commerce model city”. In
· Total exports rose by three percent year-on-year to addition to streamlining registration processes for
RMB518.7 billion e-commerce companies, the city has made other efforts
to promote the development of e-commerce. One
· Guangdong realized an import value of RMB337.99 example is the building of dedicated industrial parks,
billion, increased 3.3 percent since last year. such as Futian International E-commerce Industrial
Park, which opened in 2009 and houses more than 150
In particular, trade between Guangzhou and newly internet and e-commerce companies.
emerging markets, including Latin America, the Middle
East and Africa, has increased greatly in recent years. Qianhai Shenzhen-Hong Kong Modern
Services Cooperation Zone
Spotlight on Shenzhen Government
Innovation One state-level project being developed in Shenzhen
is the Qianhai Shenzhen-Hong Kong Modern Services
Shenzhen’s government has taken the lead on a Cooperation Zone, approved by the State Council in
number of new initiatives to become the national June 2012. By the end of March, 2017, around 133,000
leader in innovation and private enterprise growth. The companies with a combined registered capital of
city has experienced rapid private economic growth, RMB4.839 trillion had already registered in the zone.
spawning about 1,083,063 private companies, including As a JV between Hong Kong and Mainland China, and
international giants such as Huawei Technologies Co., supported by the State Council, the Qianhai Zone is
Ltd., Tencent Holdings Ltd, China Vanke Co., Ltd., and designed as an experimental business zone for better
BYD. Available incentives include a recent VAT exemption interaction between the two jurisdictions’ financial,
policy and a 50 percent CIT exemption for qualified small logistics, and IT services sectors. It covers slightly less
and micro-sized enterprises. The government has also than 20 square kilometers on the western side of
adopted specific measures in terms of equity investment Shenzhen, and is expected to achieve a GDP of RMB150
incentives, e-commerce promotion, and the introduction billion by 2020.
of electric vehicles. Lastly, as part of a pilot program
to curb emissions of key pollutants and clean up the Among its many goals, the Qianhai Zone will serve
environment, foreign investors are now permitted to as a pilot area for the liberalization of China’s financial
trade carbon permits in Shenzhen. sector as a whole, including preferential policies such as:
Equity Investment Incentives · Allowing the Qianhai Zone to explore the expansion
of offshore RMB flow-back channels, and establish an
Private equity (PE) investment has emerged as one innovative experimental zone for cross-border RMB
of the most important capital-raising avenues for small transactions;
and medium-sized enterprises. Recognizing this, the
Shenzhen government has become one of several · Supporting the granting of RMB loans for offshore
coastal city administrations to offer further incentives to projects by banking institutions established in Qianhai;
442
