Shanxi enacts measures to attract foreign investment
North China's Shanxi province has enacted a policy since October in 2019 -- to further improve the local business environment and make full use of foreign capital to promote high quality economic development, according to a policy released by the Shanxi Provincial People's Government.
The policy regulates a total of 16 support measures in various fields, including opening up, administrative approvals, taxes, financing, mergers and acquisitions, recruitment as well as research and development.
To further the opening-up process, Shanxi is encouraging foreign investors to invest in 12 areas. These include advanced equipment manufacturing, new energy vehicles, rail transportation equipment, general aviation, energy conservation and environmental protection and big data.
The province is also encouraging foreign investors to participate in the development of tourism resources, as well as the medicine and senior care industries, to promote the economic transformation and development of Shanxi.
For new foreign-funded companies, approval procedures such as business license applications, as well as taxation and official seal engravings will be completed by provincial government departments within three working days.
Withholding income tax is temporarily not levied on foreign investors who conduct direct investment, where profits are distributed to reduce the costs of operating companies.
To expand financing channels for foreign-funded companies, Shanxi is guiding government industrial funds to support the world's top 500 enterprises and global industrial leaders in investing in the province by means of equity investment. Government financing guarantee agencies are encouraged to provide financing guarantees and re-guarantee services for the introduction of foreign-funded innovative enterprises and venture investment institutions to local development zones.
Qualified foreign-funded enterprises are allowed to take part in reorganization and transformations, mergers and acquisitions of State-owned enterprises in the province.
For foreign talent and professionals -- such as foreign-funded enterprise executives, as well as research and development personnel and technicians -- Shanxi offers low-rent housing, public rent housing and special apartments. High-end talent with foreign-funded enterprises can also enjoy certain government subsidies in their work.
The province is also supporting foreign-funded enterprises in R & D and innovation, by subsidizing them -- as well as foreign-funded R & D institutions which take part in the construction of R & D platforms, including academician workstations and post-doctoral research stations.