Several Measures to Reduce the Burden on Enterprises and Promote Industrial Investment
2024-09-05 00:00

To effectively reduce the investment burden on enterprises, continue to deepen efforts to create a world-class business environment, and promote high-quality development of industrial investment, the following measures have been formulated.

  I. Reduce the cost of industrial land. Strictly implement the “clean land” transfer system; industrial land intended for transfer must meet the basic conditions for commencement of development. Adjust the benchmark land prices for industrial land in accordance with market conditions and established procedures; land transfer prices may be set at no less than 70% of the benchmark land price. After the land transfer for an industrial project is finalized, payment of the land price may be made in installments, with full payment due within one year from the date of contract signing.

  II. Relaxing Restrictive Clauses on Land Use Rights. Provisions regarding the mortgage, lease, or transfer of land use rights in industrial land transfer contracts shall follow the model text for state-owned land use right transfer contracts; no additional restrictive clauses may be added. Enterprises may mortgage the land after paying the full land price and obtaining the land use right certificate; upon completing more than 25% of the total investment as stipulated in the contract, they may transfer the land use rights upon approval, provided that the industrial category and regulatory requirements remain unchanged in principle.

  III. Reducing the Burden of Default Penalties for Project Commencement and Completion. For newly introduced projects, penalties for failure to commence or complete industrial projects shall be abolished. Industrial projects must commence construction within one year of land delivery and be completed within the agreed timeframe. If an enterprise is unable to commence or complete construction on schedule due to significant changes in market conditions or force majeure, it may apply for an appropriate extension of the commencement or completion deadline; such extensions shall generally not exceed one year (projects contracted prior to the issuance of this document may be implemented accordingly).If construction has not commenced by the end of the extension period, the government shall reclaim the land at a price no higher than the original transfer price or exchange it for another plot of equivalent value to prevent speculation in industrial land.

  IV. Reducing Performance Evaluation Requirements for Industrial Projects. For newly introduced projects, mandatory performance evaluation requirements regarding tax revenue per mu, output value, and production volume will no longer be imposed. Enterprises must pay taxes strictly in accordance with laws and regulations and must not illegally transfer tax revenue to other localities. For projects already under contract, if affected by objective factors such as significant changes in the market environment, the parties to the contract may, upon mutual agreement, adjust performance evaluation indicators—such as the investment intensity—specified in the original contract, provided that the reduction does not exceed 20%.

  V. Reduce water and energy costs for projects. Promote the implementation of zero-investment connection projects for external utility lines (including power, gas, water, and drainage) for industrial enterprises. Accelerate the upgrade of existing industrial parks to enable meter reading directly at the point of use; for new industrial parks, power supply companies shall implement meter reading at the point of use. Strictly crack down on price markups in the resale of electricity within industrial parks.

  VI. Streamlining Project Construction and Permitting Procedures. No mandatory requirements shall be imposed on industrial projects regarding the proportion of prefabricated buildings, the adoption of new energy sources, or the provision of public facilities. Socially-invested industrial projects are permitted to independently select construction contractors and apply for construction permits with missing documents in accordance with relevant regulations. If an enterprise needs to change the general contractor or amend the construction permit due to changes in production requirements or other reasons, such changes shall be implemented upon approval; if adjustments to the architectural design are required, the process shall be expedited in accordance with relevant regulations.

  VII. Exemption from Liability for Industrial Category Adjustments. If enterprises are unable to fulfill the terms of project investment agreements under their original industrial categories due to changes in the market environment or industrial transformation and upgrading, they may apply to adjust and optimize their classification to other industrial categories consistent with regional industrial development plans. Upon approval, they shall not bear liability for breach of contract.

  VIII. Shortening Project Approval Timelines. The role of the approval agency service mechanism shall be leveraged to track the entire process from project commencement to production and full capacity, assisting enterprises in efficiently handling various business-related administrative approval procedures with “zero trips.” For major industrial projects, parallel reviews shall be implemented, and the practices of notification-based commitment and conditional approval shall be promoted to expedite procedures such as project approval and filing, site selection, environmental assessment, and energy conservation review, thereby enhancing approval efficiency.

  This document shall take effect upon issuance and shall be interpreted by the Municipal Investment Promotion Bureau.


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