LUZHENGFA [2020]14

Shandong Provincial People’s Government

Notice on printing and distributing Shandong Province’s Several Measures on Better Utilization of Foreign Investments

All municipal people’s governments, counties (cities and districts) people’s governments, provincial departments, subordinate bodies, major enterprises, and colleges and universities:

Shandong Province’s Several Measures on Foreign Capital Utilization is hereby printed and distributed to you. You are required to observe and implement assiduously.

Shandong Provincial People’s Government

August 6, 2020

(Public release)

Shandong Province’s Several Measures on Better Utilization of Foreign Investments

To implement the CPC Central Committee and the State Council’s decision and deployment on stabilizing foreign investments, and carry out the State Council’s Opinions on Better Utilization of Foreign Investments (GUOFA [2019] 23), we hereby issue the following formulated measures for expanding high-quality investor and investment invitation, and promoting the robust development of foreign-invested enterprises.

I. Advancing high-level opening-up to the outside world

(1) Extend foreign investment admission.

The principle of national treatment for foreign investment admission and the negative list management system shall be carried out in a comprehensive manner. All those unlisted restrictive measures shall be cancelled. The national policies for opening up the finance sector shall be carried out speedily. Wholly foreign-owned enterprises should be encouraged to establish in the fields of special purpose vehicles, new energy automobiles, and commercial vehicles manufacturing. (Responsible units: Provincial Development and Reform Commission, Provincial Department of Industry and Information Technology, Provincial Department of Commerce, Provincial Bureau of Local Finance Supervision, Shandong Banking Regulatory Bureau, Shandong Securities Regulatory Bureau, Qingdao Banking Regulatory Bureau, and Qingdao Securities Regulatory Bureau, the first agency is the coordinator, the same hereinafter).

(2) Expand foreign investment fields. We can promote a batch of new infrastructures, SOEs’ mixed ownership reforms, and the like superior resources to attract foreign investments for cooperation. Transnational corporations are encouraged to establish their headquarters and functional agencies in Shandong. (Responsible units: Provincial Development and Reform Commission, Provincial Department of Finance, Provincial Department of Commerce, Provincial State-Owned Supervision & Administration Commission, Provincial Bureau of Local Finance Supervision, and all municipal people’s governments).

(3) Support free trade zone pilots. Wholly foreign-owned training institutes are encouraged to have business operation in education training and vocational skills training. Relevant procedures shall be furnished for the free trade zone pilots to be provided with relevant value-added telecommunications services. (Responsible units: Provincial Department of Commerce, Provincial Department of Education, Provincial Department of Housing and Urban & Rural Construction, Provincial Department of Human Resources & Social Securities, Provincial Bureau of Telecommunications Management, and Jinan, Qingdao and Yantai municipal people’s governments).

(4) Speed up opening-up platform construction. For the first batch of provincially accredited international collaborative parks, the provincial finance will provide 50 million RMB Yuan subsidy or award, which will be dedicated to planned construction, investors & investment solicitation, innovation & entrepreneurship public services platform, and open carrier construction. (Responsible units: Provincial Department of Commerce, Provincial Department of Finance). For those provincial or higher development zones, and free trade zone pilots listed top 10 in terms of actual utilization of foreign capitals, newly-added construction land quota can be awarded by the provincial authorities in a unified manner. (Responsible units: Provincial Department of Natural Resources, and Provincial Department of Commerce).

(5) Deepen critical regional cooperation. For 52 Japanese corporations among the Fortune Global Top 500 and 30 top large enterprises from Korea, 100 critical cooperation projects can be promoted to strengthen our weak points and expand domestic demand. We should speed up the construction of “Weihai Sino-Korea Free Trade Local Economic Cooperation Demo”, Sino-Korean (Yantai) Industrial Park, and “Sino-Japan (Qingdao) Local Development Collaboration Demo”), with 60 or above newly added Japanese and Korean invested projects. (Responsible units: Provincial Department of Commerce, Provincial Development and Reform Commission, Provincial State-Owned Assets Supervision and Administration Commission, Provincial Office of Foreign Affairs, and all municipal governments).

II. Enhancing investment promotion efforts

(6) Build an international brand for investment solicitation. We can optimize the “selectshandong.com” cloud platform, holding “Qingdao Summit for Transnational Corporation Leaders”, “Shandong Connected with Global Top 500”, “Confucian Businessmen Conference” and the like activities, to promote our investment invitation popularity and competitiveness. (Responsible units: Provincial Department of Commerce).

(7) Develop innovative investment solicitation approaches. Those leading corporations in Shandong shall be motivated to introduce into critical links in the field of manufacturing. We can facilitate some critical transnational merger and acquisition projects and encourage round-trip investment. Local governments at the county level or above are encouraged to act within their legal authority and formulate policies and measures to enhance and facilitate foreign investments. (Responsible units: Provincial Department of Commerce, Provincial Development and Reform Commission, Provincial Department of Industry and Information Technology, Provincial Department of Finance, Provincial State-Owned Assets Supervision and Administration Commission, and all municipal governments).

(8) Uphold the concept “production elements follow projects”. For key foreign investment projects, before national and provincial annual plans for land utilization come out, all municipal governments can use the land quota for new construction in advance. For those key foreign-investment projects with total investment amount above USD 50 million and the actual amount into account more than USD 10 million, the provincial government can take a holistic perspective and arrange newly-added land use quota and award the project-location cities a quota of 200 mu. (Responsible units: Provincial Department of Natural Resources, Provincial Department of Commerce, and all municipal governments). We can also follow relevant regulations and apply provincially reserved energy consumption and coal consumption quota, and emerging industries’ projects can be given no less than 20% discount based on the benchmark prices. (Responsible unit: Provincial Development and Reform Commission). All municipal governments should take have a big picture and use the pollutant discharge quota well, and pre-reduction of pollutants can be arranged to ensure key foreign investment projects. (Responsible units: Provincial Department of Ecological Environment, and all municipal governments). If the energy facilities of foreign invested enterprises need to be shut down according to relevant national and provincial regulations, alternative solutions should be recommended. (Responsible units: Provincial Bureau of Energy, and all municipal governments).

(9) Provide more financial support. For those new projects in line with industrial policy orientation and actually using more than USD 50 million, and those projects with more than USD 30 million added investment, the provincial fiancé can award no less than 3% of their actual use of foreign invested amount. (Responsible units: Provincial Department of Finance, and Provincial Department of Commerce). For major foreign-invested projects in Shandong with investment made by Fortune Global Top 500 enterprises, the “one policy for one case” principle will be observed for support. (Responsible units: Provincial Department of Commerce, Provincial Development and Reform Commission, Provincial Department of Finance, and Provincial Department of Natural Resources).

(10) Assure investment invitation and promotion activities abroad. Contingency overseas tour for key investment invitation and promotion team organization and assignment approval “green channels” should be secured, tolerating loss of non-principle docs, and completing relevant procedures within two days. Personnel from national economic and technological development zones, customs-specially-supervised regions, national new districts, and nationally-approved international cooperation parks and SOEs are given nod to invite and promote investment abroad, without annual quota limits. (Responsible departments: Provincial Office of Foreign Affairs, and all municipal people’s governments).

III. Enhancing investment services quality

(11) Provide complete and convenient investment measures. The procedures for foreign invested enterprises to register, make official seals, apply and receive invoices, apply for social security and accumulation fund registration should be handled within one work day. (Responsible units: Provincial Bureau of Market Supervision, Provincial Department of Public Security, Provincial Department of Housing and Rural & Urban Construction, Provincial Bureau of Human Resources and Social Security, Provincial Bureau of Medical Insurance, and Provincial Bureau of Taxation). The power grid enterprises should take and handle power grid company in a “one window for all” reception mode. (Responsible unit: State Power Grid Shandong Electric Power Company). Water and gas consumption applications shall be handled online. (Responsible unit: Provincial Department of Housing and Rural & Urban Construction). Project plans for land use should be proved in a “multiple measurements integrated into one, and multiple inspection combined into one” mode, which should be promoted. (Responsible unit: Provincial Department of Natural Resources)

(12) Aid top foreign talents to make innovations and start business. Those innovative talents and special skills talents should be encouraged to come to Shandong, with less age, education background or work experiences restrictions. Those excellent overseas students who want to work, make innovations and start businesses in Shandong after graduation can apply for 2 to 5 years private affairs residence permits. Those top foreign talents can be issued 5 to 10 years repeated entry visa, and their spouses and under-aged children can be issued corresponding visas of the same duration for repeated entry into China. (Responsible units: Provincial Department of Science & Technology, Provincial Department of Education, Provincial  Department of Public Security, Provincial Department of Human Resources and Social Security, and all municipal governments)

(13) Provide more finance support. Those eligible medium and small foreign invested enterprise can be provided with contingency extension arrangements for repaying capital and interest in the roll-over or renew loan forms, and the longest extension can be the end of March, 2021. Those governmental financing guarantee institutions should charge no more than 1% guarantee charge fee for small and micro foreign invested enterprises with individual guarantee amount of 5 million or below. (Responsible units: Provincial Bureau of Local Finance Supervision, Jinan Branch of the People’s Bank of China, Shandong Banking Regulatory Bureau, and Qingdao Banking Regulatory Bureau). The Export-Import Bank of China should be supported to provide credit aids for eligible foreign investment projects, and provide preferential interest rate loans for those projects up to requirements. (Responsible unit: Shandong Branch of the Export-Import Bank of China). Foreign invested enterprises are supported and encouraged to extend their cross border use of RMB, and the foreign invested enterprises that initially handle the foreign debt contract signing and registration procedures can choose their own foreign debt borrow mode. Those foreign-invested enterprises handling capital project income exchange settlement do not need to submit materials one by one in advance. (Responsible unit: Jinan Branch of the People’s Bank of China).

(14) Reduce corporate tax and fee burdens. During the Pandemic outbreak, foreign invested enterprises can secure abatement on their own share of payment for basic endowment insurance, un-employment insurance and employment injury insurance according to relevant national regulations. Those insured foreign-invested enterprises that do not have job cut or have minimum layoff will be returned with unemployment insurance premium for job security in accordance with relevant national regulations. (Responsible units: Provincial Department of Human Resources and Social Security, and all municipal governments). Those foreign invested enterprises in face of difficulties in business can apply for extended deadline for tax payment as approved by competent taxation agency, with extension up to 3 months. They can apply for holdover of payment of accumulative housing funds as specified, or pay the minimum standard of 5% for employers and individuals respectively. (Responsible unit: Provincial Bureau of Taxation, Provincial Department of Housing and Rural & Urban Construction, and all municipal governments)

(15) Optimize life supporting services. Medical institutions with favorable conditions can open international clinics. They are encouraged to cooperate with domestic and international insurance companies to have international settlements of commercial insurance. (Responsible units: Provincial Health Care Commission, and all municipal people’s governments). All cities are encouraged to plan and build up schools for the children of foreign personnel, and those primary and secondary schools with favorable conditions can be furnished with international education courses. We can explore some modes for famous foreign (external) enterprises to run a solely-invested school, and Sino-foreign joint ventures and wholly foreign-owned enterprises are encouraged to open vocational colleges in Shandong. (Responsible unit: Provincial Department of Education, and all municipal people’s governments).

IV. Strengthening investment protection measures

(16) Safeguard the legitimate rights of foreign invested enterprises. Governments and competent departments at various levels should formulate administrative documents for foreign investments, and to this end, we shall refer to foreign-invested enterprises, relevant chambers of commerce, and industrial associations, and prepare versions in foreign language for better reference. No excuses like administration division adjustment, government shifting, functional adjustment or replacement of principal personnel should be taken to break any agreement. Foreign-invested enterprises should be treated the same as domestic enterprises, having the same rights in qualifications & accreditation, standard formulation, project application, professional title accreditation, government procurement and so on. (Responsible units: Provincial Department of Commerce, Provincial Development & Reform Commission, Provincial Department of Science & Technology, Provincial Department of Industry & Information Technology, Provincial Department of Justice, Provincial Department of Finance, Provincial Local Finance Regulatory Bureau, Provincial Bureau of Taxation and all municipal people’s governments). Some legal services advisory boards should be formed to protect the lawful rights of foreign invested enterprises. We shall also enhance the capability of arbitration bodies in handling foreign-related cases. (Responsible units: Provincial Department of Justice, Provincial Department of Commerce, and Provincial Council for Promotion of International Trade).

(17) Better administrative supervision. For some light unintentional unlawful actions of foreign invested enterprises, lighter, lesser or no administrative punishment may apply according to law. For those foreign invested enterprises listed for protection, no complete shutdown or production suspension measures should be taken. (Responsible units: Provincial Department of Ecological Environment, Provincial Department of Justice,  Provincial Department of Commerce, and Provincial Department of Emergency Handling, and all municipal governments ).

(18) Ensure intellectual property rights protection. We should speed up the construction of China (Shandong) Intellectual Property Protection Center. The procedures for electronic registration of intellectual property mortgage financing should be reduced to three working days. (Responsible unit: Provincial Bureau of Market Supervision). We should provide different channels for simple and complicated intellectual property cases, using various evidences and rules legally and flexibly, to lower testification difficulties. (Responsible unit: Provincial Court of Justice).

V. Building a sound organizational guarantee system.

(19) Establish a complete coordination service mechanism. We should establish a dialogue mechanism between provincial leadership and leaders of transnational corporation leaders, and a consultation system for major foreign investments around cities in Shandong province. We can expand the “Shandong Provincial Government’s Economic Consultants” identifying and recruiting scope, up to 50 persons or so, to provide consultation opinions in first half of the year, and during the closed session of the Qingdao Summit for Translational Corporation Leaders. The resources of foreign related departments should be put together to optimize the deployment of the provincial government’s foreign trade and economic representatives abroad. (Responsible units: Provincial Department of Commerce, Provincial Department of United Frontline, Provincial Office of Foreign Affairs, Provincial Council of Promotion of International Trade, and all municipal governments).

(20) Improve management measures for performance assessment. In overall assessments of the economic and social development, the “investor and investment invitation, and the talent and intellectual attracting, and opening-up highland building” shall be assessed,  highlighting the actual use of foreign investments scale, growth and Japanese and Korean Investment assessment. Each season, the cities and provincial and national development districts with actual use of foreign investment amount and increase among tops can promote themselves on main stream media. (Responsible units: Provincial Department of Commerce, Organization Department of CPC Shandong Provincial Committee, Publicity Department of CPC Shandong Provincial Committee, and Provincial Department of Finance).

CC: All departments of CPC Shandong Provincial Committee, Office of the Standing Committee of Shandong Provincial People’s Congress, Office of the Provincial People’s Political Consultative Conference, Provincial Prison Committee, Provincial Court of Justice, and Provincial Procuratorate.

All democratic parties provincial committees, and the Provincial Association of Industry and Commerce.

Office of Shandong Provincial People’s Government

Printed and distributed on August 7, 2020