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Preferential policies

Time:2009-10-30 08:47:51  Source:  Author:

Preferential Policies for Foreign Investment

1. The concerned authorities shall give priorities to foreign-funded enterprises for water supply, power supply, transportation conditions, and communication facilities needed for their production and operation. All said fees shall be collected in accordance with the charging standard of local state-owned enterprises. Fuels and raw materials at the responsibility of the Chinese counterpart shall be preferentially supplied by the material supply departments.

2. Short-term working funds and other necessary credit funds needed by foreign-funded enterprises during the production and circulation may be preferentially loaned, upon examination and verification by banks.

3. For foreign investors dealing in material-provided processing and customer parts assembling in Hunan province, no import license is needed for imported motor vehicles; imported mechanical equipment for compensation trades is exempted from import duties, as well as taxes for domestic links, levied by Customs on behalf of others.

4. Export-oriented enterprises and technologically advanced enterprises shall be exempt from site use fees for 5-10 years, since their founding. After expiration, half the fees will be collected, in light of relevant provisions. Enterprises of development-oriented agriculture and animal husbandry are exempt from land use fees for 10-15 years, upon approval; Enterprises of development-oriented forestry are exempt from land use fees for 20-30 years, upon the approval.

5. Export-oriented enterprises and technologically advanced enterprises shall pay or withdraw labor insurance, welfare expenses, and housing aid funds for Chinese employees, in accordance with the relevant provisions, but enjoy exemption from various subsidies for Chinese employees.

6. Foreign exchange needed by foreign-funded enterprises may be brought in and out through the Foreign Exchange Swap Center of Hunan Province. Foreign exchange brought in can be used for payments of principal and interest, purchase of equipment and raw materials, profit remittance, and as the legitimate income of foreign employees. The surpluses and deficiencies of foreign banks may be swapped among foreign-funded enterprises, or between foreign-funded enterprise and domestic enterprises, under the supervision of foreign exchange administrations.

7. Foreign exchange payments may be made for home sales of products from foreign-funded enterprises, if they are approved for Substitution of Importation by Products.

8. Foreign-funded enterprises have the right to make their production and operation plans, raise funds, purchase means of production, and sell products within the scope of approved contracts. Foreign-funded enterprises, subject to the requirements of production and operation, shall have the right to decide on their systems such as organizational structure, the size of its personnel force, employment and dismissal, wage standard, wage form, incentives and allowances, etc., under the provisions of Central and Provincial Governments.

9. Foreign-funded enterprises have the right to possess, use, benefit from, and dispose of their own property, in accordance with the law. The profits and other legitimate incomes of foreign-funded enterprises, gained from the investment in Hunan, may be remitted abroad, in accordance with the law.

10. Foreign-funded enterprises only need to pay taxes and fees in accordance with the law and regulations. No other fee or tax may be apportioned or collected from them. Foreign-funded enterprises have the right to refuse any fee collection and apportionment which is beyond the laws and regulations.

11. Referees and introducers (excluding those who undertake the work of attracting foreign investment for state agencies) who successfully attract foreign investors' investments in Hunan, by means of recommendation and introduction, can win a bonus which is a proportion of the total investment. The concrete standards are subject to stipulations by the Hunan Provincial Government.

12. Foreign investors or foreign-funded enterprises have the right to appeal to the People's Government and concerned authorities, as well as to lodge complaints to the People's Court, in accordance with the law, to prevent or check any act from infringing upon their lawful rights and interests. 

Preferential Policies on Exit & Entry Administration

1.Taiwan residents (including the accompanying spouse and children) employed by Foreign Funded enterprises or overseas enterprises residing in China enjoy preferential policies on multiple exit and entry visas, after checking and approving within a valid period of 1~5 years (mostly within valid period of 1~2 years). Taiwan investors, senior executives, and representatives of Taiwan enterprises residing in China (including the accompanying spouse and children), under condition of total investment of more than USD $2 million, or tax payment of more than RMB $200,000 in the previous year, or an investment term for 5 or more than 5 years, are approved of multiple exit and entry visas within a valid period of 3~5 years, which coijncides with the validity period of the Taiwan Residents to and from Mainland China Permit. Key technicians and managers (including the accompanying spouse and children) in enterprises mentioned above are approved for multiple exit and entry visa within valid period of 3 years. 

2. Foreign senior executives, technology talents, and major foreign investors are approved for a permanent residence certification in China, and the entry visa is exempt. Foreigners with temporary residence are approved for a multiple exit and entry visa F, within valid period of 1~5 years, and the maximum time of each temporary residence shall be no longer than 6 months. Permanent foreign residents, in case of the necessity for multiple exits and entries, are approved for multiple exit and entry visas, within valid period equivalent to that of Foreign Resident Certificate.

3. Overseas Chinese, HK, and Macao residents enjoy preferential residence policies in Hunan Province. Overseas Chinese, HK, and Macao residents (including the accompanying family), under condition of investment, study, or purchase of real estate in Hunan Province, or a residence of more than 3 months, enjoy the same policies as local residents; whereas it is not required to provide a Temporary Residence Certificate of Overseas Chinese, Hong Kong ,and Macao Residents.

4. Taiwan residents who accord with the following conditions may obtain permanent residence on the mainland, after approval:
(1) Investors paying tax in an amount of at least RMB 500,000 every year, or with a total investment in Hunan of at least USD 2 million;
(2) Urgently needed talents, who are engaged in science and technology, education and culture, medical treatment, agriculture, or other fields (including the accompanying spouse and children), who are confirmed by the Ministry of Personnel, or State Administration of Foreign Experts Affairs.

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