Fushun Economic Development Zone

From China Liaoning Business Guide

Overview

Liaoning Fushun Economic Development Zone (LFEDZ) is a development zone approved by the provincial government in 1993 and located right between Shenyang and Fushun, with 12 kilometers distance to either city center. It borders to the west with Shenyang Hunnan New District, Dongling and Qipanshan, and to the east with the city of Fushun. It covers 16 square kilometers with a population of 120,000. LFEDZ is 25 kilometers from Shenyang Taoxian International Airport, 380 kilometers from Dalian, and 200 kilometers from Yingkou.

Investment Environment

The Zone has on one hand easy access to the energy and material resources of Fushun, on the other hand also easy access to the technologies, culture, research and living quality of Shenyang.

In 2007, a strategy to integrate Shenyang and Fushun was proposed and promoted, first step to build the Shenyang Metro cluster of cities in central Liaoning, which aims to become the fourth pole of China’s economic growth. The integration of resources is an effort of coordinated regional development in China and a key strategic decision to achieve positive interaction between the hinterland and coastal sectors and speed up urban transformation.

LFEDZ features an organic mix of modern urban space and green eco-cycle technologies. Hunhe River separates an ecology zone with focus on environmental protection and tourism resources in the north, and a modern industries and living zone in the south, which contains advanced manufacturing industries, such as energy equipment, safety equipment and auto parts, modern service industries such as residential, commercial, and finance properties. A financial services center is being built by Fushun city.

Functional Parks

Liaoning Fushun Economic Development Zone consists of the Central Zone, Gaowan Economic Zone, Lishi Economic Zone and Danan Economic Zone.

Preferential Policies

Standard factories will be built within the Equipment Base with a total area of 1 million square meters, which can be either purchased or leased by firms. For leases, a 50 percent discount shall be offered for two years. For one-time purchases, a 15 percent subsidy shall be granted.
Businesses anchored in the Equipment Base can voluntarily choose "Liaoning", "Shenyang" or "Fushun" in their titles and use Shenyang’s area code "024" in their telephone numbers.
For foreign invested businesses with land use rights, within the first three years after start of operations, based on the investment amount and tax contributions, financial support shall be offered of an equal amount of the local revenue that is composed of income tax, business tax and value-added tax paid by the firms. If the average annual growth rate of sales exceeds 15 percent, the firms shall then be given further financial support of 50 percent of the local revenue that is composed of income tax, business tax and value-added tax for another two years.
Preferential tax policies apply in the Equipment Base. High-tech businesses as recognized jointly by the science and technology authorities and tax authorities shall enjoy a concessionary corporate income tax rate of 15 percent.
Firms in the Equipment Base are encouraged to be listed. Those firms that are listed domestically or overseas shall enjoy further one-time subsidies of 300,000 RMB to 1 million RMB (43,200 to 144,000 USD) in addition to the existing policy support.
Provincial-level-and-above R&D institutions or key labs led by authoritative experts shall be granted 100,000 - 300,000 RMB (14,400 – 43,200 USD) start-up capital. Based on their laboratory equipment or construction inputs, for every 1 million RMB (144,000 USD) investment, they shall receive laboratories of 100 square meters, exempt from rental and property management fees. For research projects approved by national ministries or commissions, local authorities shall incorporate them into the annual science and technology development-funding plan.
Foreign and overseas research staff, who come to work in the Equipment Base to lead national-level or provincial-level advanced equipment manufacturing projects with a tenure of five years and above, shall be awarded research startup capital of 200,000 RMB (about 28,800 USD) to 1 million RMB (144,000 USD), depending on the technological content and the contribution to the development of the Equipment Base, temporary housing with an area of 90 - 150 square meters and a 50,000 - 150,000 RMB (7,200 – 21,600 USD) housing allowance.