1¡¢Why Invest in Zhenjiang

when we say China is a huge market with a population of 1.2 billion, we can say the Yangtze Delta plays as a bridge and Zhenjiang serves as the golden key to grasp the pulse of the market.

The Yangtze Delta consists of Jiangsu province, Shanghai city, zhejiang province.

People of the Yangtze Delta accounts for 10.4% of the national population.

The GDP takes up 19.8% of the country¡¯s total.

The commodity circulation represents 29.6% of the national total.

          Zhenjiang boasts the advantage of spatial transportation by ¡°Railway, Highway, Waterway and Airway¡±. The Beijing-Shanghai Railway goes through Zhengjiang from west to east. The Beijing-Shanghai High Speed Railway, which is planned by the state, will cut across the area .The Shanghai-Nanjing Expressway, National Highways 312 and 104,highways along the Yangtze River all pass through Zhenjiang. The Yangtze River Bridge between Zhenjiang and Yangzhou that is being constructed connects Zhenjiang with the northern Jiangsu and provinces in central China. The Yangtze River and the Beijing-Hangzhou Grand Canal cross here, constituting the largest and business water system in China. The Lukou International Airport in Nanjing to the west and the Changzhou Airport to the east are merely 80 and 50 kilometers away from Zhenjiang respectively.

         Zhenjiang possesses an international harbor that is open to the outside .The harbor has 139 berths, of which 20 berths are of 10,000 tonnage or above. The largest dock is capable of berthing 50,000-ton ships. When the 6 new 10,000-tonnage berths are completed in the Dagang Harbor Project Phase 3 which is in operation, the yearly freight handling capacity will come up to a new step. Zhenjiang Harbor is the 3rd largest harbor of the Yangtze River, and it is listed as one of China¡¯s major pivot harbors which is connected to the railway, now the harbor has established relations of shipment business with 136 harbors in more than 40 countries and regions. As a fist-class state port open to outside, Zhenjiang port has a complete set of mechanisms for port monitoring, Customs House, frontier inspection, export and import commodity inspection, quarantine, etc.

          Zhenjiang¡¯s workforce is well-educated, resilient, flexible and industrious. Zhenjiang provides nine years of free compulsory education and funds 10 universities and colleges and is engaged in boosting life-long learning through tertiary institutions and the Internet.

          Enjoying a happy life is as important as pursuing a successful career. The beautiful montains and water and comfortable life may be attractive to you.

          Zhenjiang belongs to the monsoon climate region 0f the northern   subtropical zone. The average temperature is 15.4˚ C. The sunshine hours of the year amounts to 2,057.2;the yearly non-frost period lasts for 238 days; the annual rainfall is 1,072.8 millimeters.

           The telephone service in Zhenjiang is program-controlled exchange and digitalized conveyance. Businesses are opened up for program-controlled exchange, mobile phone communication, wireless paging, conference television, multimedia wide-band data communication, ISDN, Intelligence Net, Internet information, etc, providing the national economic informationization with a high-speed communication platform.
 

2¡¢Facts and Statistics

          Zhenjiang is situated in the southern part of Jiangsu Province, with Nanjing to the west, Shanghai to the east. Zhenjiang belongs to the monsoon climate region 0f the northern   subtropical zone. The average temperature is 15.4˚ C. The sunshine hours of the year amounts to 2,057.2;the yearly non-frost period lasts for 238 days; the annual rainfall is 1,072.8 millimeters.

          Zhenjiang Municipality, with 4counties (or boroughs)-Dantu, Danyang, Jurong and Yangzhong ¨Cunder its jurisdiction, is directly governed by Jiangsu Province, With a population of 700,000 and an area of 60 square kilometers, Zhenjiang City proper is divided into 3 districts; Jingkou , Runzhou and the New Zone ,The total area of Zhenjiang is 3,843 square kilometers, and the total population is 2.89millions.

          The main mineral resources in Zhenjiang are: iron, copper, lead, zinc, tungsten, molybdenum and,othermetal-licminerals,limestone,dolonite,marbie,quartzite,clay,xoal,rock-salt,salt-lime,betonite,pearlite,zeolite and other non-metallic mineral resources. The deposits of limestone£¬dolomite, bentonite and rock-salt are of good quality and in large quantity.

          Zhenjiang has a long-standing history and culture as well as rich tourism resources. It has always enjoyed a laudatory title ¡°the first landscape in the world¡± and ¡°the urban hill and forest¡±, There are many spots of beautiful scenery and ancient relics plus tourist spots. Among the scenic in it, Jinshan, Jiaoshan and Beigu Hills are listed among the ten great human and natural landscapes of the nation. The Carved Stones in Front of the Six-Dynasty Mausoleum are in Zhenjiang. Mount Maoshan and Mount Baohuashan are the place of origin of the Chinese Taoism and a Holy Land of Buddhism respectively. The South Hill is a scenic area , and the National Forest Park is a tranquil and tasteful resort. Historic and scientific monographs such as Engraved Dragon by Scholastic Mind, Selections from prince Zhaoming, and Writings at Dream Brook were all completed in Zhenjiang.

          The 9-year compulsory education has already been practiced in Zhenjiang. There are 37 high schools, 71 professional high schools (including technical schools) and 7 higher institutions in the city. Among them, Jiangsu University of Science &Tech is a national key university. Under these institutions there are 46 colleges and departments, 3 post-doctoral workstations, 11 doctoral programs and 43 master¡¯s programs. The city has 419 scientific research institutes of various kinds at all levels, 3 of which are affiliated to ministries or the province. The Institute for Silkworm & Sericulture under the Chinese Academy of Agricultural Science is a research institution at the national level. The city has 91,200 professional and technical persons in varied specifications.

                           

3¡¢ Investment Incentives

          Zhenjiang New Zone and Dantu, Danyang, Yangzhong and Jurong Economic Development Zones are all of the provincial level.

           In Zhenjiang New Zone, the area of 20 square kilometers has completed the necessary infrastructure, including roads, water supply and drainage sewage, power supply, gas supply, communication, land smoothing etc, A group of leading industries has formed, including paper making, fine chemicals, engineering plastics, electronics, precise casting, food ,etc, Dingmao Area in the New Zone is divided into 3 functional areas an industrial area, a commercial, area and a high-tech industrial park, Dagang Area in the New Zone has a natural deep-water harbor-the Dagang, The harbor area has built 10 berths of 10,000 tonnage and above, 2 berths of 5,000 tonnage, and a berth of 3,000 tonnage, there are also 3 docks specialized in chemicals (2 of 10,000 tonnage,1 of 5,000 tonnage), chemical silos of 50,000 cubic meters in volume, and 3 docks of  10,000 tonnage for freight owners of foreign enterprises, A special Railway cut across the district, connecting to the Beijing-Shanghai Railway, On the back of the harbor there is a vast open land It is an ideal place for transferring materials and goods, warehouse storage, massive harbor industry, and for investing in enterprises which need shipments in large quantities, consume huge amounts of water and process export products.

    £¨1£©For the foreign invested productive enterprise established in this city, the enterprise income tax is imposed at the reduced rate of 24%; for newly set up foreign invested productive enterprise, whose operating period is longer than 10 years, after the ¡°2 years free and 3 years half¡± income taxation period as stipulated in the Tax Law, from the 6th year on the enterprise may apply for the government to approve that the local financial revenue be arranged for a special fund, which will give the enterprise 50% of the local royalty from the income tax really paid as a refund every year in the 3 years to come.  

  £¨2£©For the foreign investment projects in high and new technology, the enterprise income tax is collected at the lowered rate of 15%, With approval by the authorities concerned. After the ¡°2years free and 3 years half ¡° income taxation period ads stipulated in the Tax Law, the enterprise may apply for the government to approve that the local financial revenue be arranged for a special fund, which will give the enterprise 50% of the local royalty from the income tax really paid as a refund every year from the 6th to 10th year.

    £¨3£©For the projects with foreign investment of over 10 million US dollars, foreign investment projects in power plants, roads, railways, bridges, harbors, piers, gas, water works, water conservancies and other infrastructure projects, projects for comprehensive development of agriculture (including farming, forestry, animal husbandry or aquiculture, and related processing industries), projects for agricultural product export and structural adjustment of agriculture, all these enterprises enjoy the ¡°2years free and 3years half¡± income taxation policy as stipulated in the Tax Law; after that period, the enterprise may apply for the government to approve that the local financial revenue be arranged for a special fund, which will give the enterprise 50% of the local royalty from the income tax really paid as a refund every year from the 6th to 10th year when the enterprise begins to make profit.

    £¨4£©The foreign investment enterprises, which exploit barren hills, barren riversides, waste waters or uncultivated lands for structural adjustment of agriculture, enjoy 3 years free from submitting the agricultural tax and approve that the local financial revenue be arranged for a special fund, which will grant the enterprise 100% of the agricultural tax and special product tax really paid every year from the 4th to 6th year as an award. Those enterprises, which still have financial difficulty in the 7th year, may continue receiving, an award equal to 25% -50% of the agricultural tax and special product tax really paid every year for 2 or 3 years.

    £¨5£©For the productive foreign investment enterprises, the local income tax is exempted during the ¡°2 years free and 3 years half¡± period, After this period of tax exemption, the local income tax may still be exempted for 3 years for export-oriented enterprises, provided that the yearly export value is above 50% of the production value of the year.

    £¨6£©An enterprise with advanced technology or export-oriented foreign investment enterprise after the period of the income tax exemption and reduction, if the technology is still advanced, the half reduction period may be extended by 3 years; if the yearly export value is above 70% of the output of the year, the tax may still be paid half, But if the enterprise has enjoyed the low tax rate of 15% already, it should pay the enterprise income tax at the rate of 10%, provided that it meets the requirements mentioned above.

     £¨7£©If a foreign investor reinvests his profit received from the invested enterprise to set up a new enterprise in China with export-oriented product or advanced technology, and operates it for 5 years or longer, he may get back all the enterprise income tax which was paid on the basis of the reinvested amount; if he reinvests in the sane enterprise to increase the registered capital, or uses the profit as capital to set up a new enterprise whose operation period is no less than 5 years he may get 40% of the enterprise income tax paid on the reinvested amount refunded, period is no less than 5 years ,he may get 40% of the enterprise income tax paid on the reinvested amount refunded.

     £¨8£©Mechanical and electrical products made by a foreign investment enterprise, which has won a bid through the international way of public bidding and uses a loan from a foreign government or a loan from an international financial organization, are treated as exporting products and may enjoy a refund of the value added tax.

     £¨9£©After a foreign investment enterprise has purchased equipment, which is made in China and belongs to the tax-free catalog, the enterprise may get a full refund of the value added tax on the domestic domestic equipment, provided that the purchasing is within the total amount of investment.

     £¨10£©A foreign investment enterprise, which receives and exports the goods made by it ,is exempted from the consumer tax and the value added tax at this link; a foreign investment enterprise, which produces export products or processes imported materials into export goods, may enjoy refunding the value added tax and the consumer tax because of exporting.

      £¨11£©For a foreign-invested project, which belongs to the encouraged category or the restricted Category B as conforming to the ¡°GUIDE TO FOREIGN INVESTMENT IN INDUSTRIES¡±, and which transfers technology, the imported equipment for its own use is exempted from the customs tariff and value added tax the import link, except for a commodity which is listed in the ¡°CATALOG OF IMPORT COMMODITIES NOT DUTY-FREE FOR FOREIGN INVESTMENT PROJECTS¡±,

    £¨12£©A general taxpayer of value added tax who sells the computer software product, or integrated circuit product (including single crystal silicon chip) that is developed and produced independently by himself, right after paying tax legally rated as 17%, gets a refund of the part that exceeds 3% for software product, or exceeds 6% for circuit product as the actual tax rate immediately upon taxation.

   £¨13£©Foreign investment enterprises which increase their expenditures on technological development by 10% or more compared to last year, after being approved by the tax bureau, are allowed to have a part the tax they should pay for this year cancelled, the amount of cancellation is equal to half of the technological development cost actually occurred.

    £¨1£©.The key projects, high-tech projects and projects with foreign investment of 10 million US dollars more, through approval by the Municipal Government, can use the land at the lowest protective land price, and enjoy the preferential policy that is to exempt and reduce the land profit royalty under the municipal levels. As for large-scale projects, more flexible measures can be taken on the one-matter one-policy basis, a special policy for a specific matter.

    £¨2£©.Forindustrial projects set up by foreign businessmen, in case of difficulty paying the land lease fee all at once, after the state and provincial portions are paid, the municipal portion can be paid year by year in the form of annual lease.

      £¨3£©For projects of comprehensive agricultural development (including farming, forestry, animal husbandry or aquiculture) and related processing industries, and projects for agricultural product export, when applying for using the state-owned reserve land£¬ the land use free is exempted. Projects of comprehensive agricultural development on barren hills, barren riversides, discarded ponds and uncultivated lands though contracts, the contract period can be 30 years or longer. In the first 2 years, through approval, all the land lease fee can be exempted. Foreign funded cooperation in afforestation can be as long as 50years.

      £¨4£©For all social welfare undertakings and focally supported projects in science & technology, education, roads, railways, bridges, harbors, water conservancy, which are set up by foreign businessmen, the land use fee is totally free, and the land use right is granted.

      £¨5£©The foreign funded projects of roads, bridges and the facilities attached to them, when the construction scale is US$10 million and more, through approval, non-profitable items along the road or bridge or in the designated area can be developed as priority in accordance with stipulations; when bidding for profitable items, they may obtain the right to operate prior to competitors under the same condition.

      £¨6£©A general productive enterprise with foreign capital and Chinese investment investment by land allocation, through approval can pay the municipal portion of the land lease fee year by year in the form of annual rent.

      £¨7£©A foreign investment enterprise. Which obtains the right to use land by purchasing it, does not have to pay the land use fee. The foreign investment enterprise obtains the right to use land by installment payment (the first installment should be no less than50%), and then goes through the registration formality of mortgage with the state land department for loan mortgage.

      £¨8£©After contracting with the state land administration department and paying for the land use right according to relevant terms. a foreign investment enterprise receives a ¡°Certificate for Using State-Owned Land¡±. and its right to use the land is established. The enterprise may transfer, lease or mortgage this land use right. observing the law and following the stipulation. A foreign investment enterprise may also apply for reservation of land. Within the reserved period, it can enjoy preference of signing a contract against selling the land use right to others.

£¨9£©Sino-foreign joint ventures, cooperative enterprises and solely foreign invested enterprise that are set up by foreign investment enterprises or foreign investors within the Chinese boundary may get exempted from the land occupation tax.

          The use of electricity is popularized to 100% in Zhenjiang City and countryside. Jianbi power station, which is located in an east suburb of the city, is one of the largest thermal power stations in China. With installed capacity of 1,625,000 kilowatts. The daily tap water supply capacity in the urban area is 575,000 cubic meters. The city gas supply reaches 90.5% of households.

         The foreign invested productive enterprises set up in the New Zone enjoy the 15% tax rate for their enterprise income tax, which is in accord with the state preferential policy for high-tech industrial parks; the difference is to be subsidized by the New Zone.

        The foreign invested enterprises in the New Zone with a registered capital US$5 million and more, after the ¡°2 years free and 3 years half¡± of the income tax period stipulated by the Tax Law, may enjoy a 1-year extension of tax vacation and a 2-year extension of half-reduction; the difference to be subsidized by the New Zone.

        The high-tech product manufacturers at the provincial level and above, established in the New Zone, beginning from the year of recognition; may apply for a financial subsidy for high technology in the New Zone. The period of subsidizing is 3 years for the state level, and 2 years for the provincial level. The subsidy will be mainly used for supporting enterprises¡¯ R&D of high-tech products. The maximum amount of subsidy is the royalty portion in the product value added tax submitted to the New Zone finance in the same year. The technological enterprises created by scholars returned from abroad, PhDs and post-doctors entering the Zone, may apply for a financial subsidy for high technology in the New Zone within 2 years. The maximum amount of subsidy is the royalty portion in the value added tax submitted by the enterprise to the New Zone finance in the same year.

 

4¡¢Investment Procedure

     A Brief Introduction to the office of Investment Projects United Authorization

      To simplify the procedures of examining and approving, to improve the working efficiency, and to standardize the charging practice, the Municipal Government has decided to combine the 26 municipal departments involved in examining and approving all the domestic and foreign investment into a service office, and gather them on one floor to work together.

     The items to be examined and approved for the investment project by the ¡°office¡± are: productive projects (including agricultural projects), real estate projects and the third industrial projects, concerning the company establishing, planning and locating, the land purchasing, allocating and leasing, the engineering and building construction; these items need to be examined and approved by responsible executive mechanisms; and the rights to utilize water, power, gas, telecommunication and relevant urban infrastructures should also be examined and approved in the form of documents of approval that are checked and issued by related departments.

     The ¡°office¡± for investment project approving make public of Service Content, Working Procedure, Application Material, Deadline Promise, and Charging Norm, A general matter is handled immediately, a special matter is promised to handle, a vital matter is handled coordinately, a matter submitted to a supervisor is traced, an urgent mater is hanged without resting over the weekend, and a restricted matter is replied in time.

     As the ¡°office¡± has become a standard practice, the scattered examinations in the past are converted into a concentrated exam now, the timeless examination is converted into a deadline promised exam, the serial examinations are converted into parallel exams, and the previous charges which were spread over many places ate bundled up into a place at ¡°office¡±, bringing great convenience to investors.

     NOTE: Zhenjiang Municipal Investment Project United Authorization office

    Address: 2nd Floor, Shangyou Mansion. 139 Zhengdong Road, Zhenjiang City

    Phone: 0511-4408661¡¢4408003

  

5¡¢Contact Us

      As the Government's inward investment agency, the Zhenjiang Investment Promotion Website(InvestZj) offers investors on-line information about investing in Zhenjiang municipality of the People¡¯s Republic of China. The InvestZj is your one-stop source of up-to-date business and investment  information. Let us help you make Zhenjiang your profit center in China, please contact us.

E-mail: info@investzj.gov.cn

Tel: 0086-511---4436929

Fax:0086---511-4422122

Address: 7th Building,141, Zhendong Road, Zhenjiang, Jiangsu, China

6¡¢Useful Links

Xinhua News Agency  http://www.xinhuanet.com/english/index.htm

Ministry of Foreign Affairs of the People¡¯s Republic of China  http://us-mirror.fmprc.gov.cn/eng/

China Online (china.org.cn)   http://www.china.org.cn/english/index.htm

China:  Facts and Figures 2001  http://www.china.org.cn/e-Internet/index.htm

China¡¯s WTO Entry   http://www.china.org.cn/english/21693.htm

Chinese Literature  http://www.chineseliterature.com.cn/clt/index.htm

Ministry of Foreign Trade and Economic Cooperation of PRC 

http://www.moftec.gov.cn/moftec_en/index.html

State Economic & Trade Commission of PRC http://www.setc.gov.cn/english/index_e.htm