's GDP approached 524.173 billion yuan in 2003, up 11.5 percent on the previous year.
In 2003, the proportions of the added value of the primary, secondary and tertiary industries in Fujian
's GDP changed from the previous 14.2:46.1:39.7 to 13.5:47.6:38.9.
's revenue was 55.273 billion yuan in 2003, up 16 percent.
Industrial added value:
The industrial added value of Fujian
totaled over 214.99 billion yuan in 2003, up 15.6 percent.
In 2003, the ratio of grain and non-grain crop growing area was readjusted from 60.2:39.8 to 58.4:41.6. This means a reduction of 90,000 ha in the growing area of grain crops. The total grain output in the year was 7.13 million tons, down 6.6 percent from the previous year.
Customs statistics show that the total import and export value of the province in 2003 was US$35.335 billion, up 24.4 percent from the previous year. The export value was US$21.14 billion, up 7.9 percent; while the import value was US$14.195 billion, up 28.7 percent.
In 2003, the province approved a total of 2,274 projects with foreign direct investment, the contractual foreign capital amounting to US$7.25 billion, up 4.4 percent. Of the sum US$4.99 billion had been actually used, a rise of 17.5 percent.
has formed a complete industrial system, with the petrochemical, electronics, machinery, construction, building material, forestry, fishery and aquiculture, and light and textile sectors as its pillar industries.Priority industries:
1. Agriculture, forestry, animal husbandry, fishery and related industries;
2. Light industry;
3. Textile industry;
4. Transportation and telecommunication industries;
5. Coal industry;
6. Power industry;
7. Ferrous metallurgy industry;
8. Non-ferrous metal industry;
9. Petroleum, petrochemical and chemical industries;
10. Machine-building industry;
11. Electronics industry;
12. Building material, equipment and other nonmetallic mineral products industries;
13. Pharmaceutical industry;
14. Medical equipment manufacturing industry;
15. Aviation and aerospace industries;
16. New industries;
17. Service industry;
18. Projects listed in the category permitting foreign investment, with all of their products for direct export.
Catalog of industries encouraging foreign investment:
1. Agriculture, forestry, animal husbandry and related industries:
1) Reclamation and development of wastelands, barren mountains and tidal-flat zones (excluding areas containing military installations); and transformation of low- and average-yield fields;
2) Development of new, high-quality and high-yield strains of agricultural crops, such as sugar crops, fruit trees, vegetables, flowers and plants, and forage grass, and related technologies;
3) Mass production of vegetables, flowers and plants using soilless cultivation techniques;
4) Afforestation and import of improved tree varieties;
5) Multiplication of fine breeds of animal, poultry and aquatic stocks, excluding rare and precious species peculiar to China;
6) Breeding of brand-name, special and high-quality aquatic species;
7) New varieties of safe and highly effective agricultural chemicals and pesticides, which have an effective rate of 80 percent or above and are safe to be used around humans, animals and crops;
8) Highly concentrated chemical fertilizers, such as potash and phosphate fertilizers;
9) New technologies for the production of agricultural plastic sheeting and development of new products, such as fiber, photolysis and multi-purpose film, and related raw materials;
10) Antibiotics for animals, including antibiotics and chemical synthetics;
11) New products and new preparations of anthelmintics, parasiticides and coccidiostats for animals;
12) Development of feed additive and protein resources;
13) New techniques and equipment for the storage, fresh preservation, drying and processing of grains, vegetables, fruit, meat and aquatic products;
14) Forestry chemicals, and new products and new technologies for comprehensive utilization of "inferior, small and firewood" timber and bamboo in forest areas;
15) Construction and operation of multi-purpose water-control projects, subject to the Chinese partner holding a controlling stake or leading position;
16) Manufacture of water-efficient irrigation equipment involving new technology;
17) Manufacture of agricultural machinery and equipment involving new technology;
18) Engineering projects related to improvement and conservation of ecological environment.
2. Light industry:
1) Design, processing and manufacture of molds for nonmetallic product;
2) Paper pulp, with an annual production capacity of 170,000 tons or more of wood pulp, and a corresponding raw material base;
3) Post-finishing and processing of leather and hides, and manufacture of related
equipment involving new technology;
4) Production of mercury-free alkali-manganese secondary batteries and lithium-ion cells;
5) Manufacture of technologically advanced special-purpose industrial sewing machines;
6) Production of polyamide clinging wrap;
7) Production of new, highly efficient enzyme preparations;
8) Production of synthetic perfume and mono-isolate;
9) Research into and popularization of applied technology for Freon substitution;
10) Production of diacetate and tows for cigarette making.
3. Textile industry:
1) Wood pulp for textile artificial fiber, with an annual production capacity of 100,000 tons or more, and a corresponding raw material base;
2) Special textiles for industrial use;
3) Printing, dyeing and post-finishing of high emulation artificial fibers and high-grade fabrics;
4) Production of textile assistants, oiling agents and dyestuffs.
4. Transportation, posts and telecommunications:
1) Technologies and equipment for railway transportation: Design and manufacture of locomotives and main parts; design and manufacture of railway equipment; technologies for express railways and manufacture of related equipment; manufacture of equipment for communicational signals and safety monitoring; and manufacture of equipment and instruments for electrified railways;
2) Construction and management of feeder railways, local railways, and related bridges, tunnels and ferry facilities, with exclusive foreign investment prohibited;
3) Design and manufacture of new machinery and equipment for highway and port;
4) Construction and management of urban metro and light rails, subject to the Chinese partner holding a controlling stake or leading position;
5) Construction and management of highways, independent bridges and tunnels;
6) Construction and management of public dock facilities of ports, subject to the Chinese partner holding a controlling stake or leading position;
7) Construction and management of civil airports, subject to the Chinese partner holding a controlling stake or leading position;
8) Manufacture of equipment for DCS/CDMA systems;
9) Manufacture of phototiming and microwave synchronous digital transmission equipment at 2.5 Gb/s or above;
10) Manufacture of phototelegraphy, wireless and data communication metering devices at 2.5 Gb/s;
11) Manufacture of ATM switching equipment.
5. Coal industry:
1) Design and manufacture of coal mining, conveyance and dressing equipment;
2) Coal mining, washing and dressing, with special and rare varieties of coal subject to the Chinese partner holding a controlling stake or leading position;
3) Production of coal slurry and liquefaction of coal;
4) Comprehensive utilization of coal;
5) Comprehensive development and utilization of low-thermal-value fuels and associated resources;
6) Pipeline transportation of coal;
7) Prospecting and mining of coal-seam gas.
6. Power industry:
1) Construction and management of thermal power stations with single-unit installed capacity of 300,000 kw or above;
2) Construction and management of hydropower stations built mainly for electricity generation;
3) Construction and management of nuclear power stations, subject to the Chinese partner holding a controlling stake or leading position;
4) Construction and management of power stations applying clean coal-burning technology;
5) Construction and management of power stations using new energy sources, including the solar, wind, magnetic, geothermal, tidal and biomass energy.
7. Ferrous metallurgical industry:
1) Steel making with ultra-high electric furnaces with a capacity of 50 tons or more, equipped with external refining and continuous casting capability, and converter furnaces with a capacity of 50 tons or more;
2) Smelting of stainless steel;
3) Production of cold-rolled silicon steel sheets;
4) Production of hot- and cold-rolled stainless steel plates;
5) Steel tubes for petroleum piping;
6) Processing and treatment of steel scrap;
7) Mining and dressing of iron and manganese ores;
8) Production of direct reduction iron (DRI) and retailored iron;
9) Mining of high-aluminum bauxite and hard clay ores and production of grog;
10) Deep processing of needle coke, tamped coke and coal tar;
11) Production of coke by dry quenching.
8. Nonferrous metallurgical industry:
1) Production of monocrystalline silicon (8 inches or above in diameter) and polycrystalline silicon;
2) Production of hard alloys, and tin and antimony compounds;
3) Production of nonferrous metal composite materials and new alloys;
4) Mining of copper, lead and zinc ores, with exclusive foreign investment prohibited;
5) Mining of aluminum ores, with exclusive foreign investment prohibited, and production of aluminum with an annual capacity of 300,000 tons or more;
6) Application of rare earth.
9. Petroleum, petrochemical and chemical industries:
1) Production of ion membrane for caustic soda use;
2) Ethylene, with an annual production capacity of 600,000 tons or more, subject to the Chinese partner holding a controlling stake or leading position.
3) Corvic, subject to the Chinese partner holding a controlling stake or leading position;
4) Comprehensive utilization of C5-C9 byproducts of ethylene;
5) Engineering plastics and plastic alloys;
6) Necessary raw materials for synthetics: bisphenol A, butadiene-styrene latex, pyridine, 4.4-diphenyl methane vulcabond, and vulcabond toluence;
7) Comprehensive utilization of basic organic raw chemicals: the derivatives of benzene and methylbenzene, including para-, ortho- or meta-dimethylbenzene;
8) Production of synthetic rubber: liquid butadiene styrene rubber, butyl rubber, isoamyl rubber, ethylene-propylene rubber, butadiene neoprene rubber, polyester rubber, acrylic rubber and chlorohydrin rubber;
9) Fine chemicals: new products and technology for dyestuffs (pigment), intermediates, catalytic agents, assistants and petroleum additives; processing techniques for commercialization of dyestuffs and pigment; and production of hi-tech chemicals for electronics and papermaking use, food and feed additives, leather and hide chemicals, oilfield assistants, surface active agents, water treatment agents, adhesives, inorganic fibers, and inorganic powder stuffing;
10) Production of chlorinated titanium white;
11) Production of coal chemicals;
12) Comprehensive utilization of waste gas, liquid and residue;
13) Production of automobile exhaust depurants, catalytic agents and other assistants;
14) Development and application of new tertiary oil recovery technology that can increase petroleum recovery rate, subject to the Chinese partner holding a controlling stake or leading position;
15) Construction and management of oil and gas pipelines, oil depots and oil port terminals, subject to the Chinese partner holding a controlling stake or leading position.
10. Machine-building industry:
1) Manufacture of high performance welding robots and highly efficient welding assembly lines;
2) Production of high temperature resistant insulation materials (rated at F and H class) and molded insulation pieces;
3) Manufacture of underground trackless mining, loading and conveying equipment, 100-ton or over mechanically driven mine dumpers, mobile crushers, bucket-wheel excavators with a capacity of 3,000 cubic meters or more per hour, mine loaders with a capacity of five cubic meters or more, and full-face tunnel-boring machines;
4) Manufacture of multi-color offset presses for web and folio or paper of larger size;
5) Manufacture of underground electromechanical cleaning equipment and production of cleaning agents;
6) Manufacture of turbine compressors and mixing pelletizers for complete sets of equipment with an annual production capacity of 300,000 tons or more of synthetic ammonia, 480,000 tons or more of urea, and 300,000 tons or more of ethylene, subject to the Chinese partner holding a controlling stake or leading position;
7) Manufacture of complete sets of new-type textile and papermaking (including pulping) machines;
8) Development and manufacture of precision online measuring instruments;
9) Manufacture of new technological monitoring and testing instruments and equipment for production safety and environmental protection;
10) New-type components and materials for meters and instruments, mainly the new switches and function devices for instruments such as intelligent sensors, adapters, flexible circuit plates, photoelectric switches and proximity switches;
11) Research, design and development centers for key basic machinery and parts, and major technological equipment;
12) Development of proportional and servo hydraulic technology and manufacture of low-power pneumatic control valves and packing static sealing parts;
13) Manufacture of precision dies, precision cavity molds and matrix standard components;
14) Manufacture of urban sewage disposal equipment with a daily capacity of 250,000 tons or more, fixed-film industrial wastewater treatment equipment, upflow anaerobic fluidized bed equipment and other equipment for biological treatment of sewage, flyash brick making equipment with an annual production capacity of 50,000-100,000 tons, waste plastics recycling equipment, industrial boiler desulphurization and denitration equipment, and large high-temperature resistant, acid-proof bag-type dusters;
15) Manufacture of precision bearings and special bearings for all kinds of principal machines;
16) Manufacture of key automobile components and spare parts: brake and drive gear assemblies, gearboxes, fuel pumps of diesel engines, pistons (including piston rings), air valves, hydraulic jibs, axle bushes, pressurizers, filters (triple filtering), constant-velocity universal joints, shock absorbers, seat adjusters, car locks, rear-view mirrors, window openers, dashboard, light bulb holders and bulbs, and special high strength fasteners;
17) Manufacture of automobile and motorcycle molds, including dies, injection molds and press molds, and clamping apparatus such as those for welding and testing purposes;
18) Manufacture of semi-finished cast and forged components for automobiles and motorcycles;
19) Automobile and motorcycle technology research, design and development centers;
20) Manufacture of special desert vehicles and other special-purpose vehicles for use in the petroleum industry;
21) Manufacture of key motorcycle components and parts: carburetors, magnetos, starting motors, light panels and disc brakes;
22) Manufacture of new technological water-quality online monitoring instruments;
23) Manufacture of special flood prevention and emergency rescue machinery and equipment;
24) Manufacture of machinery for dredging and earthwork in wetlands;
25) Manufacture of complete sets of feed processing equipment with a capacity of 10 tons or more per hour, and key components;
26) Design and manufacture of new instruments and equipment for petroleum prospecting and exploration.
11. Electronics industry:
1) Production of large integrated circuits with a line width of 0.35 micron or smaller;
2) Production of new-type electronic components and devices, including chip elements, and electric electronic components and parts;
3) Production of photoelectric components, sensitive components and sensors;
4) Manufacture of large and medium-sized computers;
5) Manufacture of compatible digital TV, HDTV and digital cassette recorders;
6) Development of special materials for semiconductors and photoelectrons;
7) Manufacture of new-type display devices, such as panel display devices and screens;
8) Manufacture of computer application systems such as three-dimensional computer-aided design (CAD), computer-aided test (CAT), computer-aided manufacturing (CAM), computer-aided engineering (CAE) and others;
9) Manufacture of special electronic equipment, instruments and molds;
10) Manufacture of hydrological data collection instruments and equipment;
11) Manufacture of satellite communication equipment;
12) Manufacture of digital cross-connection equipment;
13) Manufacture of air traffic control equipment, with exclusive foreign investment prohibited;
14) Development and manufacture of CD and magnetic disc memory and components with large capacity;
15) Development and manufacture of new-model printing equipment, including laser printers;
16) Manufacture of multimedia system equipment for data communication;
17) Production of single-mode optical fiber;
18) Manufacture of equipment for access network communication systems;
19) Manufacture of new technological equipment for supporting communication networks;
20) Manufacture of broadband ISDN equipment.
12. Industries of building materials and equipment and other nonmetallic mineral products:
1) High-quality float glass production lines with a daily melting capacity of 500 tons or more;
2) High-grade sanitary ceramics production lines with an annual production capacity to 500,000 pieces or more, and auxiliary hardware and plastic parts;
3) New-type building materials, such as walling, decorating, finishing, waterproof and thermal insulation materials;
4) New-type dry process cement production lines with a daily capacity of 4,000 tons or more of clinker, with the projects allowed only for the central and western regions of China;
5) Bulk cement storage and shipping facilities;
6) Production lines of glass fiber (through direct melting process) and glass-fiber reinforced plastics, with an annual capacity of 10,000 tons or more;
7) Inorganic nonmetallic materials and related products, such as quartz glass and artificial crystals;
8) High-grade refractory materials used in kilns and furnaces for glass, ceramics and glass fiber;
9) Plate glass deep-processing techniques and manufacture of related equipment;
10) Manufacture of tunnel-boring machines and urban subway tunneling equipment;
11) Manufacture of special equipment for urban sanitation work;
12) Manufacture of tree transplantation machinery;
13) Manufacture of road planning and repair machines and equipment.
13. Pharmaceutical industry:
1) Crude chemicals under China's patent and administrative protection, and special pharmaceutical intermediates currently need to be imported;
2) Production of analgestic-antipyretic medicines through new technologies and equipment;
3) Vitamins: nicotinic acid;
4) New anti-cancer drugs and new medicines for treating cardiovascular and cerebrovascular diseases;
5) Pharmaceutical preparations: new preparations and products involving the new technologies of sustained release, controlled release, targeting and absorbing through skin;
6) Amino acid: serine, tryptophan, histidine, etc.;
7) New-type packing materials and containers for medicines, and advanced pharmaceutical equipment;
8) New, highly effective and economical contraceptive medicines and devices;
9) New technologies, equipment and instruments for controlling the quality and improving packaging of Chinese patent drugs;
10) New technologies for analyzing the effective elements of traditional Chinese medicines and new techniques and equipment for extraction;
11) New varieties of medicines produced by using bioengineering technology;
12) Development of new adjuvants;
13) Production of reagents for diagnosing hepatitis and AIDS, and for radioimmuno-diagnosis.
14. Medical apparatus manufacturing industry:
1) Medical X-ray machines of 80 kw and above applying intermediate frequency (IF), computer-control and digital image-processing technologies and using small radiation dosage;
2) Electronic endoscopes;
3) Medical catheters.
15. Space and aviation industries:
1) Design and manufacture of civil aircraft, subject to the Chinese partner holding a controlling stake or leading position;
2) Manufacture of components and parts for civil aircraft;
3) Design and manufacture of aircraft engines, subject to the Chinese partner holding a controlling stake or leading position;
4) Manufacture of airborne equipment;
5) Manufacture of light gas turbine engines;
6) Design and manufacture of satellites for civil use, subject to the Chinese partner holding a controlling stake or leading position;
7) Manufacture of civil satellite payloads, subject to the Chinese partner holding a controlling stake or leading position;
8) Manufacture of components and parts for civil satellites;
9) Development of application technologies of civil satellites;
10) Design and manufacture of carrier rockets for civil use, subject to the Chinese partner holding a controlling stake or leading position.
16. New industries:
1) Microelectronics technology;
2) New materials;
3) Bioengineering technologies, excluding the genetic engineering technology;
4) Information and communication system networking technology;
5) Isotope, radiation and laser technologies;
6) Ocean development and marine energy development technologies;
7) Technologies for desalination and utilization of sea water;
8) Technologies for energy-efficient development;
9) Technologies for recycling and comprehensive use of resources;
10) Environmental-pollution control projects and related monitoring and treatment technologies.
17. Service industry:
1) International economic, sci-tech and environmental protection information consulting service;
2) Maintenance and after-sales service for precision instruments and equipment;
3) Construction of centers for development of new and high technologies and new products, and incubation of enterprises.
18. Permitted projects with all products for direct export (referring to any foreign-invested project that is not included in the catalogs of encouraging, restricting or prohibiting foreign investment).
These Regulations are formulated in accordance with the state policies for further encouraging foreign investment and expanding export, and related policies of this province, with an aim of utilizing foreign capital more actively, rationally and effectively, and promoting the sound development of foreign investment in Fujian
1. Delegating more examination/approval powers to lower levels:
1) The policies included in the document, Written Reply of the State Council to the Proposals of Fujian
Province on Deepening Reform, Expanding Opening-Up and Accelerating the Development of Outward-Looking Economy (Guo Han No.58 ), shall be implemented continuously. Projects with total investment of $30 million or more, which do not involve charged operations and are capable of independently balancing their construction and production operation conditions, shall be examined and approved by the provincial government, with relevant matters submitted to the State Development Planning Commission (SDPC), the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation for the record. Projects with total investment of less than $30 million shall be examined and approved by governments of prefectures and cities at the same level (hereinafter referred to as "prefectures/cities"). Departments/bureaus directly under the provincial government shall be responsible for examining and approving the foreign investment projects of enterprises under their jurisdiction, in accordance with the regulations on the competence of prefectures/cities.
2) Foreign-invested real estate projects involving renovation of old city proper, and construction of housing geared to low-income urban residents, ordinary commercial housing, office buildings and industrial factory buildings, with total investment of less than $10 million (excluding $10 million), which do not involve the projects listed in Part B of the State's Catalog of Industries Restricting Foreign Investment, shall be examined and approved by the governments of prefectures/cities. The corresponding examination and approval powers of the province's Development Planning Commission, Foreign Economic and Trade Department, Construction Department, Department of Land and Resources and relevant competent departments shall also be delegated.
2. Overhauling non-tax charges.
3) Any charge involving foreign-invested enterprises should be collected in accordance with the "List of Non-tax Charge Items in Relation to Foreign-Invested Enterprises of Fujian
Province" promulgated by the provincial government. Measures shall be taken to strictly control initiation of new non-tax charge items for foreign-invested enterprises. Items that are truly necessary shall be agreed by the Provincial Finance Department, jointly with the Provincial Price Bureau and the SDPC. In the future, an official document shall be released for any new charge item relating to foreign-invested enterprises, and levies may begin only after three months or more of publicity and explanations.
4) The following exemptions and reductions shall be implemented for foreign-invested enterprises as of the date of promulgation of these Regulations:
a. Exempting all employees of foreign-invested enterprises from the temporary residence management fees;
b. Exempting the fire equipment installation fees;
c. Exempting the employment regulatory fees for employment of local laborers, and reducing the fees by half for hiring laborers from outside the province;
d. Exempting all enterprises from social undertaking development fees as of January 1, 2002;
e. Reducing any other charges involving foreign-invested enterprises, except for the cost of certificates and licenses, by half based on their standard rates set by the provincial government;
f. Collecting at the lowest rate the charges explicitly prescribed in the state laws and regulations of the State Council, the Ministry of Finance and the SDPC.
Governments at all levels should support the work in relation to the fee exemptions and reductions.
5) The intermediary service charges involving foreign-invested enterprises shall be regulated. Charges linked with transferred government department functions are prohibited. Price departments shall lead in thoroughly overhauling and rectifying, together with related departments, intermediary service charges involving foreign-invested enterprises.
The Office of the Provincial Customs and Coastal Defense Management Committee, and the Department of Communications shall join the Price Department to overhaul port operational charges. Arbitrary charges shall be banned, repetitive charges be eliminated, and the general level of charges in the process of import and export be lowered.
3. Encouraging foreign-invested enterprises to engage in technological development and innovation.
6) Regarding foreign-invested companies engaged in projects listed in the "Catalog of Industries Encouraging Foreign Investment" or in "Part B of the Catalog of Industries Restricting Foreign Investment," foreign-invested enterprises, research and development (R&D) centers of technologically advanced or export-oriented, shall be exempted for the equipment they imported for their own use in the technical updating and transformation with self-possessed funds beyond the limit of their total investment, shall be exempted import tax and relative value-added tax of the equipment and related technologies, accessories and spare parts, in case they cannot be made domestically, or the performance of domestically made products falls short of demand, except for the items listed in the "Catalog of Import Items by Domestic Investment Projects Not Eligible for Duty Exemption".
7) Foreign-funded companies producing items listed in the "State Catalog of High and New Technology Products" are exempt import duties and value-added tax for their import of technologies, accessories and spare parts when they are imported together with the equipment under contract.
In case a foreign-invested enterprise has to pay software fees to overseas exporter under contract when it imports the advanced technology as described in the "State Catalog of High and New Technology Products," customs duty and import-stage VAT shall be exempted for the imported technology.
8) If the products exported by a foreign-invested enterprise are listed in the "Catalog of Chinese Hi-tech Export Products" promulgated by the Ministry of Science and Technology and the MOFTEC, and the export rebates rate is lower than the tax rate, rebates shall be paid in accordance with the tax rate and the current export rebates management regulations, with the examination and approval of the State Administration of Taxation, after the products have been exported.
9) A foreign-invested enterprise, which engages in the projects listed in the "Catalog of Industries Encouraging Foreign Investment" or in "Part B of the Catalog of Industries Restricting Foreign Investment," shall have VAT paid for domestically made equipment refunded of the full amount, if the imports of the same type of equipment are subject to duty exemption.
10) The R&D expenses that a foreign-invested enterprise finances to non-related scientific research institutions or universities and colleges shall be dealt with in accordance with the provisions on taxation relating to donations prescribed in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises. The full amount shall be deducted when the enterprise, which provides the aid, computes its taxable income.
11) A foreign-invested enterprise shall be exempted from business tax for technology transfer into the province; it shall be exempted from business income tax with the approval of the competent tax department, if the technology is advanced or is transferred at favorable terms. Foreign-invested enterprises, including R&D centers, shall be exempted from business tax on the income derived from technology transfer, technology development, and related technical consultancy and services.
12) When a foreign-invested enterprise's technology development spending increases 10 percent or more over that of the previous year, another deduction shall be allowed for its taxable income of the year at a rate of 50 percent of the amount of actual expenditures on technology development, with the approval of the competent tax department. This shall be implemented in accordance with the "Provisions for Management of Deduction of Enterprises' Technology Development Expenditures Before Tax."
4. Strengthening financial and monetary support for foreign-invested enterprises
13) Other preferential policies for encouraging foreign investment issued by this province before promulgation of these Regulations shall be implemented continuously. The preferential policies for encouraging expansion of export shall be applicable to any foreign-invested enterprise. The province's special funds, such as that for encouraging foreign trade, venture capital for science and technology and funds for pillar industries, which have been established by the provincial government, are eligible for any foreign-invested enterprise encouraged for development by this province.
14) Foreign businesses are encouraged to invest in mountainous areas for agricultural projects. In line with the principle of non-overlapping and non-cross levying of the agricultural tax and the agricultural special product tax, only the special product tax shall be levied on the special products yielded from the taxable land subject to non-agricultural taxes, and the agricultural tax shall be levied alone on the special products yielded from the taxable land subject to the agricultural tax.
15) When a foreign-invested enterprise raises funds through financing within the territory of China, Chinese-capital commercial banks shall be allowed to accept the guarantee of a foreign shareholder. Foreign-invested enterprises shall be allowed to apply for an RMB loan, with foreign exchange as pledge, from an appointed Chinese-capital foreign exchange bank in China. All foreign exchange funds of a foreign-invested enterprise may be used as a pledge. Financial institutions outside China or foreign-invested financial institutions in China may provide credit security for the RMB loan under foreign exchange guarantee. Special restrictions on the procedures of registration of loans under foreign exchange pledge and guarantee and on the credit rating of the foreign-capital bank that provides foreign exchange guarantee shall be withdrawn. The RMB loans secured by a foreign shareholder or foreign exchanges shall conform to the trade policies. They may be used for meeting the needs of fixed assets investment and fund circulation, but may not be used for buying foreign exchange.
Financial institutions shall appropriately raise the line of credit for foreign-invested enterprises within the permitted scope of policies.
16) Chinese-capital commercial banks in China are allowed to grant medium-term circulating fund credit to foreign economic and trade enterprises that perform well with good creditability and repayment guarantee, in accordance with the lending provisions concerning Chinese investors in joint ventures.
17) A foreign-invested enterprise within the territory of China is allowed to offer the overseas assets of its foreign investor to the overseas branch of a Chinese-capital bank in China as a mortgage for loans granted by either overseas or domestic branches of the Chinese-capital commercial bank.
18) Foreign-invested enterprises shall be vigorously supported to raise funds through capital market. An eligible foreign-invested enterprise shall be encouraged to apply for A- or B-share issues to expand sources of funds.
19) With approval, insurance services, such as that for political risk and performance risk and contract guarantee insurance, may be provided to foreign investors in the energy, communications and other key industries encouraged by the State.
20) Chinese-capital commercial banks in China shall, in accordance with the "Interim Provisions on Management of Closed-End Loans for Foreign Economic and Trade Enterprises," grant closed-end loans for the export of an eligible foreign-invested enterprise. Regarding the export of a foreign-invested enterprise, which is suffering from losses for the time being, but has orders and repayment guarantee, the commercial banks may support it through such credit means as packing credit and negotiation of export bill.
21) Examination and verification of the export proceeds collection, foreign exchange settlement and entry into the account book of enterprises shall be withdrawn. Enterprises may directly go through the procedures at banks for settlement and entry of exchange receipts under current account into account books.
Convenience shall be given to enterprises who have acquired a high rating in the appraisal of export proceeds collection. The quota of exchange that may be retained in the foreign exchange settlement account shall be increased from 15 percent to 30 percent of the total export value of the enterprise.
22) The offer of export verification and cancellation forms shall be liberalized so as to solve the difficulty for enterprises to get them. Procedures shall be simplified and intermediate links reduced, to increase the efficiency of examining and verifying the genuineness of transactions under current account. The online declaration form examination system for examination and verification of the genuineness of exchange sales under current account shall be further improved, to shorten the time for the examination and verification. Regarding those that need examination through correspondence instead of the online declaration form examination system due to special circumstances, the pace of examination shall be quickened, and fees on verification and cancellation forms shall be withdrawn. A foreign-invested enterprise may go through the procedures of exchange sale and payment for technology import, by the technology transfer agreement and approval documents at its establishment. Within a set quota, foreign-invested enterprises may switch the savings in their exchange settlement account into fixed term deposit. In accordance with the principle of local management, the power to examine and approve the settlement of foreign exchange receipts under capital account shall be delegated. The record filing and registration system for the foreign exchange receipt settlement under capital account shall be eliminated.
5. Further defining and implementing the preferential policies for land use
23) Regarding foreign-invested projects in agriculture, infrastructure, hi-tech, pillar industries and key industrial projects for development, designated by the competent foreign economic and trade department, related land use fees shall be collected at the lower rate of charge standards prescribed by the state. Favorable land price shall be granted, according to circumstances, to foreign-invested projects on barren hills, uncultivated beaches and wastelands.
24) The foreign-invested enterprise that has acquired the land-use right by means of purchase shall not need to pay the land-use fee.
25) Regarding those, which had been established before the issue of the "Circular of the Central Committee of the Communist Party of China and the State Council on Further Strengthening Land Management to Conscientiously Protect Cultivated Land" (Zhong Fa No.11 Document ) but have not yet gone through the land-use examination and approval procedures, the land department shall take active measures to solve the remnant problems according to law as soon as possible, to meet the needs of foreign-invested enterprises for development.
6. Further improving management and services for foreign-invested enterprises.
26) The variety of equipment imported by foreign-invested enterprises subject to compulsory value appraisal shall be reduced stepwise and appraisal methods shall be improved. The equipment imported by an exclusively foreign-invested enterprise shall be free from compulsory value appraisal. A registration and record filing system shall be implemented and value appraisal charges shall be withdrawn. The property value appraisal shall be confined to the physical assets contributed as investment by the overseas investor (including those from Hong Kong
) of an equity joint venture or a contractual joint venture, or the assets purchased abroad with investment funds by a foreign investor entrusted by the foreign-invested enterprise.
Any equipment imported by a foreign-invested enterprise, which has been appraised abroad by agencies designated by the State Administration for Entry-Exit Inspection and Quarantine (now the General Administration of Quality Supervision, Inspection and Quarantine of China [AQSIQ]) and has been examined and verified by the AQSIQ agencies of the delivery areas, shall be confirmed and be free from any other value appraisals within the territory of China.
27) Fields for foreign investment shall be broadened continuously. Competitive industries shall be further opened up and the scale of utilization of foreign capital in petrochemical and construction industries shall be expanded. Foreign capital shall be absorbed into projects of development and utilization of mineral resources in a discriminative manner, with priority given to key projects. The opening up of the service trade shall be accelerated stepwise and experiments with utilization of foreign capital in such fields as tourism and waterway transportation, shall be conducted vigorously. Active efforts shall be made to try out the opening up of domestic commerce, foreign trade and travel services in selected enterprises. Service sectors such as accounting, legal consultancy, air transportation and agency business shall open wider. The experiments in the financial and telecommunication sectors shall be conducted step by step in a controlled manner and an effective regulatory mechanism shall be established and strengthened.
28) An investment company shall be allowed to sell products made by its invested enterprise on both domestic and overseas markets by means of agency or commission sale. Such companies shall be allowed to provide their invested enterprises with comprehensive services including transportation and storage, and permitted to purchase commodities not subject to export quota and licensing control for export.
29) The environment for customs clearance shall be further improved. Management procedures for various import and export links shall be simplified. On the premise of strict control, customs and inspection and quarantine departments shall conscientiously implement the "Notice of the Fujian
Provincial Government on Endorsement of the Measures Formulated by the Customs Office of the Fujian
Provincial Government and the Inspection Department on Improving Service and Optimizing Customs Clearance Environment," enhance the sense of service, improve service quality and quicken the pace of clearance.
30) For every US$500,000 of actual investment in Fujian
, an overseas investor may have one of his or her relatives or friends in Fujian
Province acquire registered permanent residence in cities of the area where the investment was made; but for each investor, no more than five people can have their urban permanent residence registered in this way.
When a foreign-invested enterprise's annual self-managed exports reaches over US$2 million in the coastal area and over US$1 million in the mountainous area, or the exports by its entrusted export agent in the province exceeds $2.5 million, its Chinese managers may apply to the public security department or the foreign affairs department for a multiple entry-exit pass to Hong Kong
, or a multiple entry-exit visa to the Hong Kong
Special Administrative Region.
When the annual exports of a foreign-invested enterprise reaches over US$1 million, or the exports by its entrusted export agent in the province exceeds $1.2 million, one to three of the Chinese staff members of the enterprise may apply for a multiple entry-exit business visa to Hong Kong
31) Governments at all levels and departments in relation to examination, approval and management of foreign investment shall strictly regulate administration, enhance service functions, simplify working procedures and increase efficiency. Systems of post responsibility, publication of working procedures, open administration and service commitment shall be implemented in a comprehensive way. Any working procedures, basis, requirements, standards and time limit in relation to the examination, approval and management of foreign investment affairs must be made known to the public. The post responsibility, name and post of each office workers and complaint matters must be publicized, so as to receive supervision and provide foreign investors with a regulated, transparent, highly efficient and high-quality investment environment.
Violators of these regulations shall be given corresponding administrative warning or disciplinary sanction by the supervisory department according to relevant regulations.
32) Within one month as of the date of promulgation of these Regulations, the province's Development Planning Commission, Economic and Trade Commission, Department of Science and Technology, Public Security Department, Department of Justice, Finance Department, Department of Labor and Social Security, Department of Land and Resources, Construction Department, Department of Communications, Foreign Economic and Trade Department, Local Taxation Bureau, Price Bureau, Tourism Bureau, Office of the Customs and Coastal Defense Management Committee, Civil Aviation Bureau, Bureau of Posts and Telecommunications, Fuzhou Central Branch of People's Bank of China, Fuzhou Branch of the State Administration of Foreign Exchange and General Fire Force, and other relevant departments must issue specific rules for implementation in accordance with these Regulations and their respective functions.
33) The right to interpret these Regulations resides in the Fujian
Provincial People's Government.
34) These Regulations shall go into effect on the day of their promulgation.