Page 7 - THE SOUTH CHINA BUSINESS JOURNAL
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ket opening
The 10-point plan calls for Guangdong to fully implement the
2018 update to the Foreign Investment Negative List, which
came into effect on July 28. The 2018 Negative List opens up
market access for foreign investors by reducing industry-
specific restrictive measures from 63 to 48.
Moreover, the plan seeks to implement other market
opening measures previously announced at the national level
but not yet applied locally, such as allowing WFOEs in NEV
manufacturing. The central government announced in April
that foreign investment limits on NEVs would be scrapped
by the end of this year, but not every region has put the new
policy in motion.
Guangdong’s plan further opens up its finance market by
canceling the foreign equity limits of Chinese banks and
financial asset management companies, and allowing foreign
banks to set up joint ventures with 51 percent ownership.
Financial incentives for foreign investors
In addition to market opening measures, the plan includes
financial incentives to attract investment.
These include cash rewards of up to RMB 100 million
(US$14.59 million) for certain investment projects and the
same amount for FIEs that establish regional headquarters
in the province. Dongguan, one of Guangdong’s major
manufacturing hubs, announced similar incentives for
establishing headquarters in June.
Further, major investment projects worth at least RMB 2
billion (US$291.18 million) may be granted free use of land,
while foreign-invested R&D institutions can apply for subsidies
of up to RMB 10 million (US$1.46 million)..
Qualified development zones and industrial parks are also
able to offer incentives, such as reduced corporate income tax
rates, based on the size and nature of investment projects.
Improving business environment
Beyond financial incentives, the plan includes several
measures to improve the province’s business environment by
streamlining administrative procedures and offering incentives
for top foreign talent.
These include the full implementation of the “One Window,
One Form” policy to streamline business registration, as well
as the setting up of a fast track option for qualified foreign
investors. Foreign investors should now be able to register
their businesses within five business days.
In terms of talent incentives, senior managers of foreign-
invested enterprises and other qualified talent can acquire a
South China Business Journal 5
The 10-point plan calls for Guangdong to fully implement the
2018 update to the Foreign Investment Negative List, which
came into effect on July 28. The 2018 Negative List opens up
market access for foreign investors by reducing industry-
specific restrictive measures from 63 to 48.
Moreover, the plan seeks to implement other market
opening measures previously announced at the national level
but not yet applied locally, such as allowing WFOEs in NEV
manufacturing. The central government announced in April
that foreign investment limits on NEVs would be scrapped
by the end of this year, but not every region has put the new
policy in motion.
Guangdong’s plan further opens up its finance market by
canceling the foreign equity limits of Chinese banks and
financial asset management companies, and allowing foreign
banks to set up joint ventures with 51 percent ownership.
Financial incentives for foreign investors
In addition to market opening measures, the plan includes
financial incentives to attract investment.
These include cash rewards of up to RMB 100 million
(US$14.59 million) for certain investment projects and the
same amount for FIEs that establish regional headquarters
in the province. Dongguan, one of Guangdong’s major
manufacturing hubs, announced similar incentives for
establishing headquarters in June.
Further, major investment projects worth at least RMB 2
billion (US$291.18 million) may be granted free use of land,
while foreign-invested R&D institutions can apply for subsidies
of up to RMB 10 million (US$1.46 million)..
Qualified development zones and industrial parks are also
able to offer incentives, such as reduced corporate income tax
rates, based on the size and nature of investment projects.
Improving business environment
Beyond financial incentives, the plan includes several
measures to improve the province’s business environment by
streamlining administrative procedures and offering incentives
for top foreign talent.
These include the full implementation of the “One Window,
One Form” policy to streamline business registration, as well
as the setting up of a fast track option for qualified foreign
investors. Foreign investors should now be able to register
their businesses within five business days.
In terms of talent incentives, senior managers of foreign-
invested enterprises and other qualified talent can acquire a
South China Business Journal 5
