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Summary of Foreign Capital Supporting Policies in Wenzhou

ALMS|Updated: August 30, 2021

Wenzhou Municipal People's Government

Several Policy Opinions on Further Accelerating the Development of the Open Economy

To all county (county-level city, district) people's governments, all units directly under the municipal government:

To thoroughly implement the new development concept, fully implement the spirit of the provincial opening-up conference, further improve Wenzhou's opening-up, accelerate the development of a higher-level open economy, and promote Wenzhou towards a high-quality development, the following policy opinions are hereby formulated according to the spirit of documents such as Notice of the State Council on Several Measures for Actively and Effectively Using Foreign Capital to Promote High-quality Economic Development and Opinions of the CPC Zhejiang Provincial Party Committee and People's Government of Zhejiang Province on Building a New Pattern of Comprehensive Opening up under the Guidance of "the Belt and Road Initiative" Construction, and Several Opinions of the Zhejiang Provincial People's Government on Promoting Foreign Investment Growth.

1. Support attracting key projects on new growth driver. For those new industrial projects (excluding industrial parks) engaging in the "three major industrial fields" – strategic emerging industries, high-end traditional industries and high-growth producer services – and of which the actual fixed-asset investment exceeds 300 million yuan ($46.39 million) or the actual foreign investment exceeds $10 million, with independent legal person qualification, rewards will be given within 5 years of starting official production. The amount of reward will be determined by the total amount of local comprehensive contribution made by the project in the first three years and halved in the latter two years. For those foreign-invested enterprises with accumulative actual foreign capital of more than $20 million within two years of establishment (more than $10 million for Fortune 500 enterprises), and that have invested in the "three major industrial fields" in Wenzhou, employees whose local contribution rate of personal emolument is over 80,000 yuan will be rewarded within five years of production. The reward amount is divided into three levels and shall be determined with reference to the proportion of 50 percent, 70 percent, and 100 percent of the local comprehensive contribution rate of 80,000 yuan (inclusive), from 80,000 yuan to 250,000 yuan (inclusive), and above 250,000 yuan made by annual personal emolument respectively.

2. Expand foreign investment in key areas. Newly introduced Fortune 500 enterprises or foreign-funded projects with more than $200 million in actual foreign investment and more than $10 million in the current year will be rewarded with 2 million yuan. Newly introduced foreign investment projects of unicorn companies with actual foreign investment of more than $5 million in the current year will be rewarded with 1 million yuan. Newly established foreign-funded investment companies (excluding fund companies) in the city will be rewarded with 1,000 yuan per $10,000 in actual foreign investment and no more than 1 million yuan in total.

*A unicorn refers to a startup valued at more than $1 billion within 10 years of its establishment.

3. Support reinvestment of profits of foreign-invested enterprises. If the profits distributed by overseas investors from resident enterprises in China are directly invested in investment projects encouraged by the country and meet the prescribed conditions, the deferred tax policy shall be applied and the withholding income tax shall not be levied for the time being.

4. Appeal for more efforts in investment promotion. Encourage counties county-level cities, and districts and municipal functional areas to establish intermediary investment incentive mechanisms. Intermediaries and middlemen (excluding government departments and civil servants) who successfully introduce major foreign investment projects will be awarded on the following basis: 1 ‰-3 ‰ reward for those of $10 million to $50 million (excluded), 2 ‰-4 ‰ reward for those above $50 million. The reward for a single project shall not exceed 3 million yuan, and the reward will be cashed in stages according to the progress of the project so as to accelerate project implementation and production.

5. Implement incentive mechanism for investment promotion. For the high-end equipment manufacturing industry, strategic emerging industries, and high-tech industrial projects (excluding industrial parks) in the "three major industrial fields", if foreign-funded projects receive $10 million in fixed-asset investment and equivalent funds are formed, the municipal finance at the corresponding level will be given to the government of the place where the project is implemented and the municipal functional area management committee a reward of up to 1.5 million yuan at 0.5 ‰ of annual actual funds to subsidize working funds. For those that have introduced more than two Fortune 500 enterprises and received more than $10 million in the current year, another 1 million yuan in working subsidies will be awarded.

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