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Preferential Policies for Absorbing Foreign Investment in Jilin Province
2011/03/28     Source:

●Designated to attract foreign investment in industries of national priority such as modernized agriculture, equipment manufacturing, Chemical, high technology and agricultural products processing; to accelerate the development of their subsidiary industries, so as to form a modern industrial base with strong competitiveness.

● Preferential credit policy support will be given to the initiation of key technologies and equipments, and the capital ratio of major projects can be reduced appropriately. Loan interest subsidy and grants can be provided to foreign investors who have received the state’s bonds for the key projects which were approved by the state. Their equity of state-owned enterprises will be increased after required approval.

● Foreign ventures are allowed to purchase the bad debt and equity of financial asset management companies, and have the right to reorganize and dispose the assets that they own.

● Foreign financial institutions are encouraged to hold shares of the commercial banks in their local cities and to participate in the restructuring of the rural credit cooperatives. Foreign-funded insurance companies, which have advantages in enterprise life annuity and agriculture insurance, are encouraged to enter Jilin Province. Priority permissions are offered to foreign investors’ establishment of joint bond companies, investment fund management companies, insurance management companies and foreign capital insurance companies.

● The national development zones and the provincial well-developed zones with unique manufacturing features and strong driving force can determine the scale of land use based on the overall land use plan and the city’s general blueprint, under the condition of the full use of the planned areas formerly approved.

● Modern manufacturing bases are preferred to be constructed in the established new model industrial parks and affiliate partnership with EU member state or other industrially developed countries.

● Investment input is preferred to flow to the harbors, border ports, roads, railroads, bridges as well as the infrastructure construction of the border cities,border farms in Jilin Province. Overseas cooperation projects are promoted in a bid to put into effect the integrated building of the roads, harbors and ports with Russia and of the roads, harbors and districts with North Korea. In aiding foreign countries, priority is put on such infrastructure projects as the constructions of road transportation, harbor and airport that link up the border ports and cities.

● In cooperation with Chinese organizations of higher education and vocational education, foreign investors, under certain laws and regulations, can establish senior professional training institutes to develop various professional skills and international business skills, enjoying equal treatment with other professional training institutes in China. Their import of educational and scientific research facilities is exempted from import tax.

● Employment of foreign experts and overseas training will be subsidized.

● The annual loss of the foreign invested enterprises engaged in manufacturing or managing can be covered by reducing the next annual income tax, the continuous compensation being no more than five years.

● The depreciation loss of the fixed assets of industrial enterprises ( houses, buildings excluded)will be reduced to less than 40% on the basis of the current depreciation time limit.

● The amortization time of industrial enterprises’ transfer acceptance of or investment in intangible assets is shortened to less than 40% on the basis of the current amortization time limit.

● For general taxpayers, who are involved mainly in such industries as equipment manufacturing, petro-chemicals, metallurgical industries, shipping, automobile manufacture and agricultural product processing, their tax for purchasing fixed assets can be offset.

● 40% of the paid income tax of the refund should be returned to foreign investors under the conditions that their profit obtained from the foreign enterprises is reinvested in these enterprises, used to increase the registered capital or invested to open other foreign companies whose running period lasts no less than five years.

● Foreign investors are encouraged to participate in reorganizing and renovating state-owned enterprises in such ways as annex purchasing, joint sharing etc.. Tax debt, left over by the original state-owned enterprises can be exempted if payback is indeed difficult.

● Transnational corporations are encouraged to set up research and development centers, capital-independently or jointly with local enterprises, research institutions, or institutions for higher education. Based on the available regulations, the import of consumptive materials for private use, reagents, model machines and sample products etc. (which cannot be produced in China) by the technology centers of approved foreign-invested enterprises, is exempted from customs duties and import VAT.

● Foreign investment is encouraged to be involved in urban public facilities construction. Restrictions will be lifted on its share ratios in such constructing and managing projects as gas, heating, water supply and sewage. Foreign party is allowed to hold a controlling share.

● Foreign investors are encouraged to inject capital and set up guarantee institutions in a joint-venture way, and provide small and medium-sized enterprises with corresponding services, such as financing guarantee, information consultation and legal aid.

● Foreign investment is encouraged in transportation industry. Restrictions on foreign share ratios will be lifted in such intermodal services  as the passenger and freight railway transportation, cross-and-within-border road transport, regular and irregular international ocean shipping operations and international container.

● Foreign investors who invest in Jilin province in the projects listed in the Catalogue of Priority Industries for Foreign Investment in the Central-Western Region of China, can enjoy the preferential policies on import duties.

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