Original Title: Notice Issued by the General Office of the Ningbo Municipal People’s Government on Several Measures to Further Optimize the Foreign Investment Environment and More Effectively Attract and Utilize Foreign Capital
Yongzhengbanfa [2023] No. 51
Document Status: Valid
Registration Number of Normative Document: ZJBC01-2023-0007
To the People’s Governments of All Districts (Counties, Cities), and All Municipal-Level Units and Units Under the Jurisdiction of Ministries and Provinces Stationed in Ningbo:
The “Several Measures on Further Optimizing the Foreign Investment Environment and Attracting and Utilizing Foreign Capital with Greater Effort” have been approved by the Municipal Government. They are hereby issued to you for earnest implementation in accordance with local conditions.
General Office of the Ningbo Municipal People’s Government
October 12, 2023
(This document is publicly released)
Yongzhengbanfa (2023) No. 51.pdf
Several Measures on Further Optimizing the Foreign Investment Environment and Strengthening Efforts to Attract and Utilize Foreign Capital
To implement the decisions and arrangements of the CPC Central Committee and the State Council regarding intensifying efforts to attract and utilize foreign investment, to thoroughly implement the “No. 1 Opening-up Project” for the upgrading and enhancement of the “Sweet Potato Economy,” to further optimize the foreign investment environment, and to accelerate the development of a global hub for high-quality foreign investment, the following measures are hereby formulated.
I. Focus on Enhancing the Level of Opening-up
(1) Expand the scope of sectors open to foreign investment. Fully implement the latest national and Free Trade Pilot Zone negative lists for foreign investment access. Proactively align with high-standard economic and trade rules such as the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Digital Economy Partnership Agreement (DEPA), and steadily expand institutional opening-up in areas such as rules, regulations, management, and standards.We will replicate and promote innovative achievements from the national comprehensive pilot program for expanding the opening-up of the service sector. We will support foreign-funded financial institutions, such as banks and insurance companies, in establishing operations in Ningbo, and strive to pilot measures for expanding openness in sectors such as telecommunications, the internet, education, culture, and healthcare within the city. We will support foreign investment in participating, in accordance with laws and regulations, in the construction of urban infrastructure, including energy, transportation, water conservancy, environmental protection, and municipal public works.We will intensify opening-up in the port and shipping services sector and explore pilot reforms of supporting systems for international ship registration. We will encourage state-owned enterprises across the city to attract foreign investment through various channels and support foreign investment in the restructuring and reorganization of state-owned enterprises, as well as in joint ventures and cooperation. We will support foreign-invested enterprises in advanced manufacturing, modern services, and the digital economy to collaborate with various vocational schools (including technical schools) and vocational training institutions in providing vocational education and training.(Responsible Units: Municipal Investment Promotion Bureau, Municipal Development and Reform Commission, Municipal Education Bureau, Municipal Human Resources and Social Security Bureau, Municipal Ecology and Environment Bureau, Municipal Housing and Urban-Rural Development Bureau, Municipal Transportation Bureau, Municipal Water Resources Bureau, Municipal Commerce Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Market Regulation Bureau, Municipal Local Financial Regulatory Bureau, Municipal Port Office, Municipal Service Industry Bureau, Municipal Energy Bureau, Ningbo Customs, Ningbo Maritime Safety Administration, Ningbo-Zhoushan Port Group,district [county, city] governments, and development zone management committees. The first-listed unit is the lead agency; the same applies below)
(2) Accelerate the introduction and implementation of foreign investment in key industries. Focus on the development of the “361” trillion-yuan industrial clusters and modern service industries, map out investment attraction strategies for industrial chains, and identify key foreign-invested enterprises to attract. Industry-specific regulatory authorities shall, in accordance with the principle that “managing an industry entails managing investment attraction, and managing a sector entails managing investment attraction,” formulate tailored investment attraction plans based on industry characteristics to accelerate the introduction, implementation, and commercialization of projects.(Responsible Units: Municipal Bureau of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Science and Technology Bureau, Municipal Commerce Bureau, Municipal Bureau of Services, Municipal Port Office, Municipal Investment Promotion Agency, governments of all districts [counties, cities], and management committees of development zones)
II. Focus on Optimizing the Structure of Foreign Investment Utilization
(3) Optimize the citywide industrial layout of foreign investment. In line with the city’s overall spatial planning for productive forces, identify the leading industries for foreign investment attraction. Support localities in prioritizing the introduction of foreign investment projects that align with their respective leading industries. For foreign investment projects that local areas cannot accommodate, ensure orderly transfer in accordance with regulations to achieve shared benefits, thereby avoiding disorderly competition and resource waste within the city. (Responsible Units: Municipal Investment Promotion Agency; governments of all districts [counties, cities]; and management committees of development zones)
(4) Developing the Foreign Capital Headquarters Economy. Leveraging relevant headquarters clustering platforms, intensify efforts to attract multinational corporations to establish investment companies and regional headquarters in Ningbo; enterprises established in Ningbo by such investment companies may enjoy the same treatment as foreign-invested enterprises. Provide greater convenience for foreign capital headquarters enterprises in conducting business operations regarding commercial registration, customs clearance, foreign exchange management, and tax administration. Support eligible regions in providing awards and subsidies to high-level talent from foreign-invested enterprises based on their contributions to the local area.(Responsible Units: Municipal Investment Promotion Bureau, Municipal Science and Technology Bureau, Municipal Public Security Bureau, Municipal Local Financial Regulatory Bureau, Ningbo Customs, Ningbo Municipal Tax Bureau, People’s Bank of China Ningbo Branch, governments of all districts [counties, cities], and management committees of development zones)
(5) Promote the Aggregation of Foreign Investment in Key Platforms. Leverage the pioneering and leading role of open platforms such as the Ningbo Area of the Zhejiang Pilot Free Trade Zone to explore new models and channels for utilizing foreign investment. Incorporate core indicators for foreign investment utilization and business environment improvement into the comprehensive performance evaluation system, striving to ensure that the scale of foreign investment in development zones accounts for more than 70% of the city’s total.(Responsible Units: Municipal Investment Promotion Bureau, Municipal Commerce Bureau, Office of the Leading Group for the Construction of the Yongjiang Science and Technology Innovation Zone, and management committees of all development zones)
(6) Enhance the trade capabilities of foreign-invested enterprises. Intensify outreach efforts to help foreign-invested enterprises effectively utilize RCEP rules and other provisions, and promote innovative breakthroughs in new trade formats such as cross-border e-commerce and offshore trade. Provide relevant foreign-invested enterprises with services and guidance on free trade agreements, trade clearance, and trade remedies. (Responsible Units: Municipal Bureau of Commerce, Municipal Council for the Promotion of International Trade, Ningbo Customs)
(7) Guide foreign investment toward green and low-carbon sectors. Encourage foreign-invested enterprises to actively participate in the carbon peaking and carbon neutrality strategy, and implement industrial low-carbon initiatives and green manufacturing projects. Support foreign-invested enterprises in the research, development, and promotion of green and low-carbon technologies. (Responsible Units: Municipal Development and Reform Commission, Municipal Bureau of Economy and Information Technology, Municipal Science and Technology Bureau, Municipal Energy Bureau)
III. Focus on Strengthening Policy and Resource Support
(8) Increase policy support for attracting advanced manufacturing projects. Focusing on the development of the “361” trillion-yuan industrial clusters, for advanced manufacturing projects with a total foreign investment of US$100 million or more and actual foreign capital utilization of US$30 million or more in the first year, an annual subsidy will be provided at a rate of 7.5% of the actual foreign capital utilized in that year, with a cumulative maximum of RMB 200 million per project. The municipal and county levels will share the costs on a 1:1 basis.For projects where foreign-invested enterprises carry out technological upgrades through capital increases or reinvestment of profits, and where the annual actual utilization of foreign capital is $30 million or more, an annual subsidy of 7.5% of the actual foreign capital utilized in that year will be provided. The cumulative subsidy for a single project shall not exceed 200 million yuan, with the municipal and county levels sharing the cost on a 1:1 basis.(Responsible Units: Municipal Investment Promotion Bureau, Municipal Finance Bureau, governments of all districts [counties, cities], and management committees of development zones)
(9) Strengthen policy support for attracting major service industry projects. For high-tech service industry projects with actual annual foreign investment of US$100 million or more, a subsidy of 2% of the actual foreign investment for that year shall be provided, with a cumulative maximum of RMB 100 million per project. The municipal and county levels shall share the cost on a 1:1 basis. (Responsible Units: Municipal Investment Promotion Bureau, Municipal Finance Bureau, governments of all districts [counties, cities], and management committees of development zones)
(10) Strengthen policy support for attracting headquarters projects of Fortune 500 companies or multinational corporations.For projects involving overseas Fortune 500 companies or multinational corporations that invest in Ningbo to establish functionally independent regional headquarters, foreign-funded R&D centers, or similar functional institutions, upon approval, an annual subsidy of 7.5% of the actual foreign investment for that year will be provided. The cumulative subsidy for a single project shall not exceed 50 million RMB, with the municipal and county levels sharing the cost on a 1:1 basis.(Responsible Units: Municipal Investment Promotion Bureau, Municipal Finance Bureau, governments of all districts [counties, cities], and management committees of development zones)
(11) Ensure the supply of essential resources for foreign investment projects. Establish and improve the “Ningbo Investment Promotion” major project management and service platform to coordinate and allocate the city’s resource platforms. For major foreign investment projects included in the municipal-level or higher key project list, the municipal government will centrally allocate new construction land quotas for those involving industrial land. Districts (counties, cities) and development zones that attract foreign investment projects using existing construction land will be rewarded with a certain proportion of new construction land plan quotas in the following year.Implement policy measures to promote green electricity consumption, support foreign-invested enterprises in participating in green certificate trading and cross-regional green electricity trading, and reduce their green electricity consumption costs. Include capital increase or profit reinvestment projects within the scope of policy guarantees for land, water, electricity, and labor. (Responsible Units: Municipal Development and Reform Commission, Municipal Bureau of Natural Resources and Planning, Municipal Ecology and Environment Bureau, Municipal Energy Bureau, Municipal Investment Promotion Agency; governments of all districts [counties, cities], and management committees of development zones)
(12) Strengthen policy support for landmark and flagship projects. Promote the inclusion of eligible foreign-invested projects in the National Development and Reform Commission’s list of major foreign-invested projects and the Ministry of Commerce’s list of key foreign-invested projects to secure national-level resource support. For particularly significant landmark and flagship foreign-invested projects, provide support on a case-by-case basis. (Responsible Units: Municipal Development and Reform Commission, Municipal Finance Bureau, Municipal Investment Promotion Agency, Ningbo Municipal Tax Bureau)
(13) Leverage the catalytic and multiplier effects of government funds. Better utilize the guiding and amplifying role of government funds by increasing profit-sharing in investment returns, guiding well-known leading funds to participate in investment cooperation, and leveraging capital partnerships to attract high-quality projects to Ningbo. Based on a clear understanding of investment risks and project feasibility, simplify project decision-making processes and accelerate decision-making speed. (Responsible Units: Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Investment Promotion Bureau)
(14) Establish a support mechanism for overseas investment promotion missions. Create a fast-track approval process for key investment promotion delegations traveling abroad on official business, and prioritize their needs when formulating official overseas travel plans. Establish a closed-loop mechanism for reporting and implementing the outcomes of official overseas delegations to accelerate the implementation and conversion of investment projects resulting from these visits. (Responsible Units: Municipal Foreign Affairs Office, Municipal Investment Promotion Bureau)
IV. Focusing on Promoting Innovative Development of Foreign Investment
(15) Support the establishment and development of foreign-funded R&D centers. Encourage foreign-funded R&D institutions to establish open R&D platforms and collaborate with local enterprises, universities, and key research platforms in technology R&D and application. Encourage foreign-funded enterprises and their R&D centers to undertake major scientific research projects. Strengthen support for high-level talent at foreign-funded R&D centers in areas such as residency, housing, medical care, and children’s education.(Responsible Units: Municipal Investment Promotion Bureau, Municipal Party Committee Organization Department [Municipal Party Committee Talent Office], Municipal Education Bureau, Municipal Science and Technology Bureau, Municipal Finance Bureau, Municipal Health Commission)
(16) Provide Incentives for Foreign-Invested R&D. Foreign-invested R&D centers established in Ningbo that meet the criteria for scientific research and R&D investment requirements will, upon certification, receive a one-time reward of up to 5% of their cumulative R&D investment over the past three years, with a maximum of 5 million RMB. High-tech enterprises that commercialize scientific and technological achievements may grant equity incentives to relevant technical personnel within the enterprise; individuals facing difficulties in making a single lump-sum tax payment may, in accordance with regulations, benefit from installment payment policies.(Responsible Units: Municipal Science and Technology Bureau, Municipal Finance Bureau, Ningbo Municipal Taxation Bureau)
(17) Encouraging the Procurement of R&D Equipment by Foreign-Invested Enterprises. Eligible foreign-invested R&D centers that purchase domestically produced equipment will be granted a full refund of value-added tax (VAT). Eligible foreign-invested R&D centers importing scientific research, technology development, and teaching supplies that cannot be produced domestically or whose performance fails to meet requirements will be exempt from import duties, import-stage VAT, and consumption tax. (Responsible Units: Ningbo Tax Bureau, Ningbo Customs)
V. Focusing on Creating a More Favorable Business Environment
(18) Foster a Fair Competitive Environment. Implement policies and measures ensuring foreign-invested enterprises participate in government procurement activities in accordance with the law, and guarantee their equal participation in government procurement through channels such as the Government Procurement Cloud. Support foreign-invested enterprises in innovating and developing globally leading products in Ningbo through measures such as “first-purchase” orders. Ensure that foreign-invested enterprises participate equally, in accordance with laws and regulations, in the work of the Municipal Standardization Technical Committee and in the formulation of local and industry standards. Encourage foreign-invested enterprises to formulate enterprise standards independently or jointly with other enterprises, and to provide standardization services.(Responsible Units: Municipal Finance Bureau, Municipal Market Regulation Bureau)
(19) Ensure that foreign-invested enterprises enjoy equal access to support policies. Policies issued by local governments and departments shall not exclude or discriminate against foreign-invested enterprises and their products and services by restricting brands or on the grounds that they are foreign brands, unless explicitly stipulated by laws and regulations or involving national security. No additional conditions shall be imposed on foreign-invested enterprises and their products and services regarding policy benefits. When formulating various foreign trade and economic measures, emphasis shall be placed on enhancing transparency and predictability, and the opinions and suggestions of foreign-invested enterprises shall be solicited in accordance with the law.(Responsible Units: Municipal Investment Promotion Bureau; district [county, city] governments; development zone management committees)
(20) Improve the service and support mechanism for foreign-invested enterprises. Establish a roundtable meeting system for foreign-invested enterprises, improve regular government-enterprise communication channels, and coordinate the provision of services and support in areas such as project access, planning, land use, energy consumption, environmental protection, construction, and financing, while strengthening full-process tracking services. Ensure the proper issuance of certificates of origin under free trade agreements to facilitate foreign-invested enterprises’ access to tariff reduction policies.(Responsible Units: Municipal Investment Promotion Bureau, Ningbo Customs, district [county, city] governments, and development zone management committees)
(21) Enhance the Convenience of Cross-Border Investment and Financing. Promote the facilitation of foreign exchange
payments and encourage banks to offer digital services for capital account transactions. Launch pilot programs for integrated RMB and foreign currency cash pools to facilitate the coordinated use of cross-border funds by multinational enterprises. Establish and improve the foreign exchange management facilitation system for Qualified Foreign Limited Partners (QFLP), supporting the prioritized investment of raised offshore RMB in Ningbo. (Responsible Units: Ningbo Branch of the People’s Bank of China, Municipal Bureau of Local Financial Supervision)
(22) Improve measures to facilitate the daily lives and work of foreign employees. Establish and improve a care and support mechanism for high-level foreign talent in foreign-invested enterprises, providing them and their families with convenient measures such as housing, educational services for their children, and priority access to medical services. Ensure that eligible high-level foreign talent enjoy equal access to various talent policies.Continuously optimize entry and exit policies to facilitate applications for multiple-entry visas and permanent residency for eligible high-level foreign talent. Focus on enhancing the internationalization of urban public services, support the development of international communities, and create a high-quality international environment. (Responsible Units: Municipal Investment Promotion Bureau, Municipal Party Committee Organization Department [Municipal Party Committee Talent Office], Municipal Education Bureau, Municipal Science and Technology Bureau, Municipal Public Security Bureau, Municipal Housing and Urban-Rural Development Bureau, Municipal Health Commission, Municipal Foreign Affairs Office)
(23) Strengthen financial support for foreign-invested enterprises. Support eligible foreign-invested enterprises in raising capital through listing on domestic and overseas stock exchanges, as well as through bond issuance and fund attraction. Support various financial institutions in providing high-quality financial services to eligible foreign-invested enterprises in accordance with market principles. (Responsible Units: Municipal Bureau of Local Financial Supervision, Municipal Finance Bureau, People’s Bank of China Ningbo Branch, Ningbo Regulatory Bureau of the National Financial Supervisory Administration, Ningbo Securities Regulatory Bureau)
(24) Safeguard the legitimate rights and interests of foreign investors. Strengthen the rule of law in foreign-related matters, leverage the roles of the Ningbo International Commercial Court and the Foreign-Invested Enterprise Complaint Center, and ensure smooth channels for foreign-related judicial proceedings and complaints.Promote cross-departmental sharing of enterprise credit information and reduce the frequency of regulatory inspections for enterprises with high credit ratings. Leverage the role of institutions such as the Ningbo Intellectual Property Court to provide one-stop comprehensive services to foreign-invested enterprises. Encourage relevant international organizations to establish intellectual property dispute mediation bodies in Ningbo. (Responsible Units: Municipal Investment Promotion Bureau, Municipal Development and Reform Commission, Municipal Commerce Bureau, Municipal Market Regulation Bureau, Municipal Intermediate People’s Court, governments of all districts [counties, cities], and management committees of development zones)
(25) Explore streamlined security management mechanisms for cross-border data flows. Implement laws and regulations such as the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law to safeguard personal information rights and provide foreign-invested enterprises with consultation on security assessments for data transfers abroad. (Responsible Unit: Municipal Cyberspace Administration Office)
(26) Advance capacity building for investment promotion. Strengthen the training and professional development of investment promotion personnel, and establish resident investment promotion offices in key foreign investment source regions. Accelerate the establishment of a diversified foreign investment promotion system, explore the establishment of market-oriented and specialized investment promotion agencies, adopt more flexible incentive measures, and promote the formation of a multi-stakeholder, flexible, and efficient coordination and collaboration mechanism for foreign investment promotion. (Responsible entity: Municipal Investment Promotion Bureau)
These measures shall take effect on November 13, 2023.
