The People's Government of Guangdong Province's Notice on Publishing "Measures of Guangdong Province for Further Expanding the Access and Utilisation of Foreign Investment (Revised Version)" (YueFu [2018] No. 78)

The People's Government of Guangdong Province issued a notice on 29 August 2018 to promulgate "Measures of Guangdong Province for Further Expanding the access and utilisation of Foreign Investment (Revised Version)". The measures include implementing a "Superior Talent Card" service, targeting 7 categories of talents including senior management personnel of enterprises of foreign investment. These expatriates' talents will be able to enjoy preferential treatment and facilitation services in entry and exit, residence and employing domestic helpers, etc.

Abstract

The People's Government of Guangdong Province issued a notice on 29 August 2018 to promulgate "Measures of Guangdong Province for Further Expanding the access and utilisation of Foreign Investment (Revised Version)".

The measures include the following:

1. Further expanding areas of foreign investment market access

   • Implement of <Special Administrative Measures for Foreign Investment (the "Negative List") (2018 Version)>. Support wholly foreign investment owned enterprises in the following areas including:- special vehicle manufacturing, new energy vehicle manufacturing, vessel design, manufacturing and repair, aircraft design, manufacturing and maintenance, helicopter (3 tons and above) design and manufacturing, design and manufacture of drones and aerostats, Gas station construction and operation, international maritime transportation, railway passenger transportation, etc.
   • To deepen the opening up of service industries in Guangdong Pilot Free Trade Zone under CEPA;
   • To promote and expand the scope of acceptance and undertaking for associations formed by a Hong Kong or Macao law firm with a Mainland China law firm; to implement Hong Kong's management mode in the field of engineering construction;

2. Increasing financial incentives for foreign investment

   From 2017 to 2022, eligible new projects including annual actual foreign investment of more than USD50 million and capital-increase projects of more than UDS30 million dollars will be rewarded with no less than 2% of its annual actual foreign investment with up to a maximum of RMB100 million.

3. Strengthening the safeguard of land use

   Foreign-invested manufacturing enterprises could enjoy preferential policies on land use in accordance with the Notification of Policies and Measures on Reducing the Cost of Manufacturing Enterprises and Supporting the Development of Real Economy of Guangdong Province by People's Government of Guangdong Province.

4. Supporting R&D and innovation

   From 2017 to 2022, the foreign R&D institutions accredited as the new-type R&D institutions funded by foreign investment can receive a maximum subsidy of RMB10 million. Those recognized as postdoctoral workstations and workstations of the academicians of the Chinese Academy of Sciences and Chinese Academy of Engineering can receive a maximum subsidy of RMB1 million. Projects of qualified foreign R&D institutions, the maximum subsidy is RMB2 million.

5. Intensifying financial support

   Utilizing the Guangdong Provincial Industry Development Fund and encouraging the equity investment to give key support to global Fortune 500 Companies, global industrial leading enterprises to invest in Guangdong, and support major outbound M&A projects of Guangdong to carry out round-trip investments through equity investment. Foreign invested enterprises enjoy the same support policy as private enterprise in listing.

6. Enhancing Talent Support

   To implement the "Guangdong Superior Talent Card" service, targeting 7 categories of talents including senior management personnel of enterprises of foreign investment. These expatriates' talents will be able to enjoy preferential treatment and facilitation services in entry and exit, residence and employing domestic helpers etc.

7. Strengthening intellectual property protection

   Accelerate the construction of intellectual property protection centers, and establish and improve mechanisms for rapid examination, confirmation and rights protection of patents. Foreign-invested enterprises are encouraged to apply for and implement patents in China.

8. Improving facilitation on investment and trade

   Implement the "multi-certification integration" reform and the "one-stop" business registration of foreign-invested enterprises outside the negative list.

9. Optimizing access of foreign capital in key zone

   Support the development of Guangdong and North-West provincial-level development zones. Refer to the Shenzhen Qianhai and Zhuhai Hengqin Corporate Income Tax Concessions Catalogue to reward new foreign investment projects in the national development zone.

10. Improving protection mechanism for foreign capital

    Integrate and optimize Guangdong's overseas economic and trade offices and accelerate the construction of an international investment system in Guangdong Province. Improve the complaint mechanism and complaint handling platform for foreign-invested enterprises.

Related link
The People's Government of Guangdong Province's Notice on Publishing "Measures of Guangdong Province for Further Expanding the Access and Utilisation of Foreign Investment (Revised Version)" (YueFu [2018] No. 78)