Page 7 - THE SOUTH CHINA BUSINESS JOURNAL
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ts, and end products – with a focus on the What are the preferential policies
automobile, computer, communications, and for encouraged industries?
electronics industries.
So far, the following preferential treatment is still
For example, in terms of automobile in place for FIEs engaging in the listed industries
manufacturing, the national list is keen to add of the encouraged catalogue:
the manufacturing of LiDAR (light detection
and ranging) and millimeter-wave (MMW) • Tariff exemptions on imported
radars related to autonomous driving technology equipment – for encouraged foreign-invested
as well as manufacturing of charging piles. In projects, the import of self-use equipment within
the fields of computer, communication, and the total amount of investment can be exempted
electronics manufacturing, the proposed list from customs duties;
added manufacturing of smart wearable devices,
intelligent unmanned aerial vehicles (UAVs), • Access to preferential land prices and
customer service robots, and smart home looser regulation of land uses – land can be
systems and equipment. preferentially supplied for encouraged foreign-
funded projects with intensive land use. The land
Production-oriented service industries transfer reserve price can be determined at 70
percent of the national minimum price for the
The FI encouraged catalogue also promotes transfer of industrial land, which yet shall be no
foreign investment in producer services. less than that of the local land; and
The draft 2020 national list has added or • Lowered corporate income tax (CIT) –
expanded items like research and development, for FIEs in encouraged industries in the central,
commercial services, modern logistics services, western, and northeastern regions that meet the
and information services. requirements, the CIT rate can be reduced by 15
percent.
For instance, in the areas of leasing and
commercial services, the national list has added Efforts to attract foreign
the maintenance and repair of modern high- businesses stepped up
end equipment, transformation and integration
of digital production lines, and items about Amid tensions with the US heating up on the
convention and exhibition services. It has economic, technological, and geopolitical
also added non-academic language training fronts as well as the socio-economic challenges
institutions to the education section. posed by the COVID-19 pandemic, Chinese
policymakers are seeking to shore up supply
Investing in the central, western, and chains and economic structural upgrades
northeastern provinces through investment at home and from abroad.
Early July, the NDRC and MOFCOM shortened
To narrow the economic gap between China’s the 2020 negative list, which restricts or
wealthiest eastern coastal regions and the rest prohibits foreign capital in certain industries,
of the country, the third goal of this catalogue is opening more market access for foreign
to lure foreign-invested enterprises to increase investment.
investment in China’s less-developed central,
western, and northeastern regions. Thus, the list
for central, western, and northeastern regions
has also been expanded, according to each
province’s local conditions.
SOUTH CHINA BUSINESS JOURNAL 4
automobile, computer, communications, and for encouraged industries?
electronics industries.
So far, the following preferential treatment is still
For example, in terms of automobile in place for FIEs engaging in the listed industries
manufacturing, the national list is keen to add of the encouraged catalogue:
the manufacturing of LiDAR (light detection
and ranging) and millimeter-wave (MMW) • Tariff exemptions on imported
radars related to autonomous driving technology equipment – for encouraged foreign-invested
as well as manufacturing of charging piles. In projects, the import of self-use equipment within
the fields of computer, communication, and the total amount of investment can be exempted
electronics manufacturing, the proposed list from customs duties;
added manufacturing of smart wearable devices,
intelligent unmanned aerial vehicles (UAVs), • Access to preferential land prices and
customer service robots, and smart home looser regulation of land uses – land can be
systems and equipment. preferentially supplied for encouraged foreign-
funded projects with intensive land use. The land
Production-oriented service industries transfer reserve price can be determined at 70
percent of the national minimum price for the
The FI encouraged catalogue also promotes transfer of industrial land, which yet shall be no
foreign investment in producer services. less than that of the local land; and
The draft 2020 national list has added or • Lowered corporate income tax (CIT) –
expanded items like research and development, for FIEs in encouraged industries in the central,
commercial services, modern logistics services, western, and northeastern regions that meet the
and information services. requirements, the CIT rate can be reduced by 15
percent.
For instance, in the areas of leasing and
commercial services, the national list has added Efforts to attract foreign
the maintenance and repair of modern high- businesses stepped up
end equipment, transformation and integration
of digital production lines, and items about Amid tensions with the US heating up on the
convention and exhibition services. It has economic, technological, and geopolitical
also added non-academic language training fronts as well as the socio-economic challenges
institutions to the education section. posed by the COVID-19 pandemic, Chinese
policymakers are seeking to shore up supply
Investing in the central, western, and chains and economic structural upgrades
northeastern provinces through investment at home and from abroad.
Early July, the NDRC and MOFCOM shortened
To narrow the economic gap between China’s the 2020 negative list, which restricts or
wealthiest eastern coastal regions and the rest prohibits foreign capital in certain industries,
of the country, the third goal of this catalogue is opening more market access for foreign
to lure foreign-invested enterprises to increase investment.
investment in China’s less-developed central,
western, and northeastern regions. Thus, the list
for central, western, and northeastern regions
has also been expanded, according to each
province’s local conditions.
SOUTH CHINA BUSINESS JOURNAL 4
