City updates policies to encourage foreign investment
The city government recently released Several Policies & Measures to further open Zhuhai up to the outside world and more effectively utilize foreign investment.
The guidelines (33 items in 10 categories updated from a March version) incorporate a wide array of incentives that often overlap with favorable national and provincial policies.
The new measures:
I. Further expand market access for foreign investors
2. Promote foreign investment in constructing a regional central city
3. Strengthen financial incentives for the use of foreign investment
4. Consolidate guarantees for land use
5. Support R&D and innovation
6. Increase financial support
7. Advance talent support
8. Optimize the environment for foreign fund utilization
9. Broaden channels for foreign fund utilization
10. Improve safeguard mechanisms
Zhuhai Free Trade Zone [Photo by Zhong Fan / Zhuhai Daily]
Wholly foreign-owned enterprises have additional encouragement to enter Zhuhai's modern industrial system to design, manufacture, and repair special-purpose vehicles. They are also invited to enter into new-energy vehicle manufacture and the chain of design, production, and maintenance of ships and aircraft, whether for main and regional routes or general purposes.
In addition, restrictions on the foreign shareholding of banks and financial asset management companies will be removed. Foreign banks will be allowed to set up branches and sub-branches at the same time. Foreign investors are further encouraged to set up joint ventures in securities, securities investment fund management, futures, and life insurance companies.
Meanwhile, foreign R&D institutions and innovation teams coming to Zhuhai will enjoy favorable treatment. Those recognized as city-level new-type R&D organizations for the first time will receive a one-time grant of up to 1 million yuan ($145,700). City-level academician workstations identified as such for the first time will be awarded a one-off subsidy of up to 1.5 million yuan ($218,600). Moreover, the incentive limit for newly introduced enterprises and for capital increase and expansion is set at 100 million yuan ($15 million), the same as the province's policy. And the two benefits can overlap, creating the strongest financial awards among prefecture-level cities in the Pearl River Delta Region.
Furthermore, manufacturing projects worth 1 billion yuan ($146 million) or above will enjoy priority treatment in land use, as will regional headquarters of World Top 500 companies and global leading enterprises.
Another key point is that Zhuhai's Measures on Reducing Cost of Manufacturing Enterprises & Supporting Real Economy Development will provide the same privileges to both domestic and foreign-funded enterprises.