Fuzhou unveils raft of business-friendly policies

By ZHONG NAN in Beijing and HU MEIDONG in Fuzhou | China Daily | Updated: 2017-02-09 08:08

Tourists row boats on a lake in Fuzhou, the capital of Fujian province, Jan 28, 2017. [Photo/VCG]

Fuzhou, the capital of Fujian province, has issued 10 investment-friendly policies including measures to stimulate the service and high-end industries to promote economic innovation, in a bid to improve its capacity to compete with rivals in other coastal provinces.

These 10 policies offer 49 measures, covering the aspects of overall economic development, high-end recruitment and technology, modern vocational education development, and the development of the internet of things and big data industries.

"The move is crucial to the government to serve the enterprises and promoting development. We can see that the government is determined to accelerate the process of building a new Fuzhou and setting a good example for other coastal cities," said Ni Yuefeng, Fujian's deputy Party chief.

Huang Xuexun, deputy director of Fuzhou's commerce bureau, said these policies can help Fuzhou create a good environment for innovation-driven development and take the lead in attracting domestic and overseas investment.

Under the new policies, companies with headquarters registered in Fuzhou in 2015 or later can be regarded as newly introduced headquarters.

Those companies can be rewarded up to 20 million yuan ($2.9 million) to facilitate their business development.

Besides company headquarters, sales centers and operating centers, as well as research and development centers that have reached certain standards can be regarded as headquarters, and rewarded up to 10 million yuan.

Among the measures to promote technological research and development, apart from a bonus for setting up technology and industrial design centers, companies that have developed the first set of equipment can get an extra bonus up to 2 million yuan.

The policies are also beneficial to absorbing foreign investments. According to Huang, Fuzhou's commerce bureau has a goal of attracting $1.94 billion foreign investments this year.

"The new policies are closely related to our automobile industry. Our company is going to take this opportunity to attract high-end employees, and to increase research productivity, as well as technological innovate ability, in order to better build the automobile brands of Fujian," Huang Chun, chief executive officer of Fujian Motor Industry Group Co, commented.

Zheng Yiran contributed to this story.

Preferential policies for foreign investment in Xiamen

1.Corporate income tax

Foreign-funded enterprises: a reduced tax rate of 20% of corporate income shall be applicable for small-size and low-profit enterprises; a reduced tax rate of 15% of corporate income shall be applicable for hi-tech enterprises that demand key supports from the state.

2.Two-year full exemption and three-year half exemption of taxes

For the hi-tech enterprises that are registered within any special economic zone on and after January 1, 2008 and demand key supports from the government (hereinafter referred to as newly-established hi-tech enterprises), the corporate income taxes shall be fully exempted for the revenues acquired from Xiamen Special Economic Zone for the first two years starting from the year when the first operating income acquired is taxable. For the subsequent three years, the corporate income taxes payable on such revenues shall be half exempted based on the statutory rate of 25%.

3.Three-year full exemption and three-year half exemption of taxes

Investment and operating incomes of public infrastructure projects that receive key governmental supports: the corporate income taxes shall be fully exempted for the first three years starting from the year when the first operating income acquired is taxable. For the subsequent three years, the corporate income taxes payable on such revenues shall be half exempted.

Incomes of eligible environment protection, energy-saving and water-saving projects: the corporate income taxes shall be fully exempted for the first three years starting from the year when the first operating income acquired is taxable. For the subsequent three years, the corporate income taxes payable on such revenues shall be half exempted.

4.Increased deductions

The expenses that a company spends on the R&D of new technologies, new products and new techniques and haven’t been included into the current profits and losses as intangible assets shall be increased by 50% before they are deducted from the taxable incomes. Where such expenses have become intangible assets, the amortization shall be done at 150% of the costs of intangible assets.

5.Investment credits

For any venture capital enterprise’s investments in any industry in which investments are preferentially supported and encouraged by the state, the taxable incomes shall be deducted in a certain proportion to such investments.

6.Imported equipment

For any foreign investment projects that are encouraged in the Catalogue of Industries for Guiding Foreign Investment (Revision 2017), all the imported equipment required by the project and for the purpose of self use and the technologies and reasonable quantity of accessory and spare parts that are imported together with the equipment according to the project contract shall be exempted of customs duties except for the commodities as specified in the Catalogue of Non-Duty-Free Commodities to be Imported for Foreign-funded Projects.

Customs Supervised Areas for Designated Functions In Xiamen

Xiamen has more special customs areas than any other city on the West Taiwan Strait Economic Zone. As of the end of 2017, there are six customs supervised areas for designated functions in Xiamen.

1. Xiangyu Free Trade Zone

Xiangyu Free Trade Zone (XFTZ) was established in October 1992, with an area of 0.6 km2. It started operations in November 1993. At present, there are 220,000 m2 of workshops and warehouses, 90,000 m2 of storage yards and 60,000 m2 of office buildings inside the Zone. More than 1,600 companies engaged in such businesses as logistics, trade and processing are operating in this zone. XFTZ prioritizes the development of bonded warehousing, export processing, international trade, detection and maintenance, and products exhibitions.

2. Xiangyu Bonded Logistics Park

Xiangyu Bonded Logistics Park (XBLP), with a planning area of 0.7 km2, was established upon the approval of the State Council in August 2004. Its first phase covered an area of 0.3 km2 and was put into operation in December 2005. Currently, there are 100,000 m2 of storage yards and 60,000 m2 of warehouses inside the Park. XBLP has four main functions, i.e., international transshipments, international distribution, international procurement, and international entrepot trade.

3. Haicang Bonded Port Zone

Haicang Bonded Port Zone (HBPZ) was established upon the approval of the State Council on 5th June 2008, with a planning area of 9.5 km2. It combines those policies provided in the Bonded Logistics Park, the Free Trade Zone and the Export Processing Zone. Its main functions are port services, logistics, and processing. The prioritized industries are port warehousing, freight transportation, bonded services, and container transshipments.

4. Torch (Xiang’an) Bonded Logistics Center (B type)

The Torch (Xiang’an) Bonded Logistics Center (B Type) was established in December 2008 with an area of 341,000 m2 and a total floor area of 257,000 m2. The first phase started operations in August 2009. The main functions of the center are bonded storage, international logistics distribution, simple processing and value-added services, detection, imports and exports, entrepot trading, product exhibitions, logistics information management, port services, and tax refunds. The Center prioritized the development of modern international logistics with a bonded logistics service.

5. Dadeng Taiwan Small Commodities Market

With a view to promoting Cross-Straits ties and deepening Cross-Straits non-governmental exchanges, Dadeng Taiwan Small Commodities Market was set up in 1998 under the approval of the State Council and the Central Military Committee. Themed on shopping tourism, it covers a site area of 830,000 m2 and has a planned floor area of 1.12 million m2. The Market started operations in May 1999. In September 2008, an expansion project was launched. On 6th September 2011, the expansion project ended with the Market being renamed Taiwan Duty-Free Park and started operations. It is the only market in the Chinese Mainland where Taiwan-sourced products are sold free of tax.

6. Xiamen Export Processing Zone

Xiamen Export Processing Zone (XEPZ) was set up with the approval of the State Council in April 2000 and started operations in January 2002. It has been merged into Xiamen Haicang Bonded Port Zone The total floor area is around 500,000 m2. The shell workshop buildings are made up of of 3 to 5 storeys with a framed structure, and each building occupies a floor area of 7,000 to 20,000 m2. XEPZ prioritizes processing trade manufacturing with a massive output, export- or import-oriented warehouse logistics, R&D, and detection and maintenance businesses.

Xiamen issues measures to boost cruise tourism industry

(chinadaily.com.cn), Updated: 2018-11-13

Xiamen municipal government have issued measures to advance the development cruise tourism industry in the city. [Photo/xmnn.cn]

Companies in the cruise tourism industry in Xiamen, Fujian province will receive subsidies from the local government, according to the Opinions on Further Promoting Cruise Tourism Industry recently released by Xiamen municipal government departments.

As part of the directive, its three issuers Xiamen Municipal Tourism Development Commission, Xiamen Port Authority, and Xiamen Municipal Bureau of Finance will support cruise ship and chartered boat companies solicit tourists and open more routes reaching countries along Maritime Silk Road.

The Opinions state that 200 yuan ($29) per tourist will be given to companies with a total of 5,000 to 50,000 outbound tourists in a calendar year and 250 yuan for those with more than 50,000 outbound tourists in a calendar year.

Some 100,000 yuan per route will be awarded to companies that use or introduce cruise ships weighing 50,000 tons or above or manage cruise routes stopping in countries along the Maritime Silk Road and another 400,000 yuan will be given to routes that stop in three or above Maritime Silk Road countries.

A reward of 100,000 yuan per route will be offered to companies that operate at least one route a week with their ships weighing 50,000 tons or above for consecutive 90 days.

A spokesman for the local tourism development commission said that these measures are expected to promote the development of Xiamen's cruise home port.

Statistics shows that Xiamen ports welcomed 84 cruise ships from January to October this year with an increase of 18.31 percent year-on-year, including Costa Atlantica, Viking Orion, Queen Elizabeth, among other world-famous cruise ships and more than 270,000 tourists, a soaring increase of 94.71 percent compared to the previous year.

Xiamen FTZ streamlines imports of non-special purpose cosmetics

(chinadaily.com.cn), Updated: 2018-11-14

Xiamen Free Trade Zone in East China's Fujian province introduces preferential policies for importing non-special purpose cosmetics at the first China International Import Expo (CIIE) on Nov 9. [Photo/xmnn.cn]

Xiamen Free Trade Zone in East China's Fujian province has simplified its companies' importing of non-special purpose cosmetics, according to the explanation meeting held by the FTZ at the first China International Import Expo (CIIE) Nov 9.

Starting from Nov 10, companies in 10 FTZs only need to put on record to their local FTZ management committee when importing non-special purpose cosmetics without the demand of the National Medical Products Administration's examination and approval, which reduces the approval time from three months to five working days, according to the national administration.

The 10 FTZs are in Fujian, Tianjin, Liaoning, Zhejiang, Henan, Hubei, Guangdong, Chongqing, Sichuan and Shaanxi provinces.

A spokesman for Xiamen FTZ said at the meeting that as long as the person in charge of his or her company' business in China is registered in Xiamen FTZ when the company imports non-special purpose cosmetics from the zone, the company can follow the new policy.

A facial mask supplier from Taiwan was the first to benefit from the new policy and its manager of business on the Chinese mainland, Lin Xuanting, said that the company had given up other ports due to the zone's preferential policy and Taiwan's convenient transport connections with the city.

In China, imported cosmetics are divided into cosmetics for special purpose and those for non-special purposes. Cosmetics for special purposes are those used for nurturing, dyeing, perming hair, hair removal, beautifying the breasts, bodybuilding, deodorizing, removing freckles, and sun protection. All others are non-special purpose cosmetics.

The CIIE, the first event of its kind in China, was held from Nov 5 to 10 and attracted more than 3,600 companies from 172 countries and regions.

20 South Korea travellers apply for 144-hour visa-free transit in Xiamen

(chinadaily.com.cn), Updated: 2019-01-30

Twenty travelers from South Korea applied for visa-free transit services on Tuesday at the Xiamen cruise port.

The figure represented the largest applicant number in a single day since the policy's implementation in Xiamen earlier this month.

A coastal city in East China's Fujian province, Xiamen began to offer 144-hour visa-free transit services to foreign travelers from 53 countries on Jan 1.

Foreign travelers from the designated countries are allowed to stay for up to 144 hours in the city if they hold valid travel documents and confirm onward travel tickets, according to the National Immigration Administration.

The administration said China receives about 43 million foreign visits annually, and the policy will help provide foreign nationals with more convenient travel arrangements.

In a bid to facilitate the procedures, Xiamen custom authorities have rolled out a considerable raft of travel-related services.

A traveler from Seoul said that they had long hoped to explore Xiamen in an in-depth manner,adding that it is first time the group to visit the city, but they don't feel strange at all since they have watched numerous TV programs at home depicting its captivating attractions.

Travellers from South Korea apply for visa-free transit services at the Xiamen cruise port on Jan 29. [Photo/fjsen.com]