Shanxi efforts to attract, support industrial transfers gain momentum


According to a recent circular issued by Shanxi Department of Commerce and Shanxi Development and Reform Commission, North China's Shanxi province is expected to take a series of measures to boost its capacity to undertake the transfer of foreign-invested manufacturing industries from eastern China. 

The circular regulates supporting measures in four aspects: preferential policies, transfer undertaking platforms, cooperation channels, and mechanism innovation. These measures have effect since July 1 and are set to be valid for five years. 

The eastern areas in the circular refer to municipalities and provinces such as Beijing, Shanghai, Tianjin, Liaoning, Hebei, Shandong, Jiangsu, Zhejiang, Fujian, and Guangdong. 

Industrial transfer refers to the investment activities of foreign-funded enterprises registered in the eastern areas in Shanxi. 

The industry catalog of sectors encouraging foreign investment (2022 edition) released by the National Development and Reform Commission and the Ministry of Commerce includes a diverse range of manufacturing industries, spanning across the national, central, and western sectors. This provides a great opportunity for foreign investors looking to invest in China's manufacturing industry, as they can choose from a variety of sectors based on their interests and expertise. 

Once a multinational company with assets exceeding $50 million sets up a regional headquarters or headquarters in Shanxi, it is set to be rewarded with 10 percent of its registered capital. The maximum reward of a single enterprise is scheduled to be at most 10 million yuan ($1.38 million). 

Shanxi plans to choose areas with conspicuous locations and traffic advantages in the province to build industrial clusters to transfer foreign-funded manufacturing businesses from the eastern areas. 

Taiyuan city, Shanxi Transformation and Comprehensive Reform Demonstration Zone, and Taiyuan-Xinzhou Integrated Economic Zone in the central part of the province are set to undertake high-tech industries, advanced manufacturing, business logistics centers, and professional service centers. 

The cities of Datong, Jinzhong, Changzhi, and Jincheng are scheduled to undertake technology-intensive, green, and low-carbon industries and guide the coordinated development of the productive service industry and manufacturing. 

Yuncheng and Linfen in southern Shanxi promise to focus on undertaking labor-intensive industries by giving full play to their advantages in labor resources. 

In addition, the cities of Shuozhou, Xinzhou, Yangquan, and Lyuliang are set to focus on undertaking the agricultural product deep processing and the upstream and downstream supporting industries of their respective advantageous industries.