From China Liaoning Business Guide

[Liao Zheng Fa 2006 No.3]

All the municipal people’s governments, all the departments and commissions of the Provincial People’s Government and all the organs directly under the Provincial People’s Government:

In accordance with the strategic plan formulated by the Provincial Committee of the CPC and the Provincial People’s Government on the development of the coastal economic belt and the "Five Points and One Line", efforts will be focused on the following five areas (hereinafter referred to as the five key areas) in the opening-up process in the future: Dalian Changxing Island Harbor Industrial Zone, Liaoning (Yingkou) Coastal Industrial Base, Liaoxi (Western Liaoning) Jinzhou Bay Coastal Economic Zone (including Jinzhou Xihai Industrial Zone and Huludao Beigang (North Port) Industrial Zone), Liaoning Dandong Industrial Park, and Dalian Zhuanghe Huayuankou Industrial Park. To expedite the development of the coastal economic belt, the following new preferential policies will be implemented in the five key areas as from Jan 1, 2006 for two consecutive years:

1. 70 percent incremental return will be given for the value-added tax, business tax, corporate income tax, personal income tax, and housing property tax paid to the provincial financial authorities by the five key areas on the basis of the figures of 2005, for infrastructure construction and the development of leading industries.
2. Hi-tech industries recognized by relevant authorities in the five key areas will pay corporate income tax at a rate of 15 percent.
3. The domestic-funded high-tech enterprises in the five key areas will be exempt from corporate income tax for two consecutive years, from the first profitable year.
4. Liaoning Provincial Credit Guarantee Center for SMEs will give priority to providing guarantees for the bank loans applied for by the eligible enterprises in the five key areas.
5. Discount loans of a certain duration will be granted by the provincial financial authorities for the technical transformation and service projects in the five key areas in such industries as equipment manufacturing, raw material processing, fine chemicals, agricultural products deep processing, textiles, pharmaceuticals.
6. The foreign trade and export-oriented enterprises in the five key areas will be subsidized by the SME International Market Development Fund in carrying out quality system certification, making product publicity and promotion, and participating in international professional exhibitions.
7. Priority will be given to the development of enterprises in the export processing bases established in the five key areas. The foreign trade development fund for the old industrial bases in Northeast China will be allocated mainly for intellectual property rights purchasing, export product upgrading, new product research and development, overseas product registration and information dissemination, agricultural product development and cultivation.
8. All the enterprises in the five key areas (including those under construction and newly established) are exempt from administrative fees. Administrative fees involving enterprises for state administration will be borne by the five key areas or municipal financial authorities; the enterprises are exempt from administrative fees for provincial administration. The stipulation is also applicable to the new administrative fees involving enterprises during the implementation of the preferential policies.
9. The five key areas have the economic management authority of provincial economic and technological development zones.
10. The principles of "government leadership, market operation, effective financing, and progressive development" will be implemented. Efforts will be made to guide China Development Bank and other financial institutions to set up financing platforms and define priorities and financing modes. Financial institutions shall actively develop the key projects in the five key areas by adopting the following measures: 1. Participating in project planning and feasibility study; 2. Conducting technical support and financing support; 3. Performing government credit and corporate credit.
11. "Enclaves" enjoying preferential policies will be demarcated within Liaoxi (Western Liaoning) Jinzhou Bay Coastal Economic Zone. Places of certain area (enclaves) may be provided for Chaoyang and Fuxin by Jinzhou and Huludao within their respective regions. In addition to the preferential policy stipulated in Article 1, enterprises in the "enclaves" will enjoy 100 percent incremental return, with the two cities (the cities providing and utilizing the "enclave") each sharing 50 percent.
12. As for the content involving Dalian in the above policies, Dalian Municipal People’s Government will formulate implementation methods by referring to related provincial policies. The other cities may formulate encouragement and support policies in line with their specific conditions.

Appendix: Demarcation of Key Coastal Areas for Economic Development

January 21, 2006

Demarcation of Key Coastal Areas for Economic Development

The key coastal areas for economic development are as follows:

Along the Bohai Sea

Dalian Changxing Island Harbor Industrial Zone, Liaoning (Yingkou) Coastal Industrial Base, and Liaoxi (Western Liaoning) Jinzhou Bay Coastal Economic Zone (including Jinzhou Xihai Industrial Zone and Huludao Beigang (North Port) Industrial Zone)

Along the Yellow Sea

Liaoning Dandong Industrial Park and Dalian Zhuanghe Huayuankou Industrial Park.

Description

1. Dalian Changxing Island Harbor Industrial Zone: The planned area and the area in the initial phase of Dalian Changxing Island Harbor Industrial Zone are 129.7 sq km and 50 sq km respectively.
2. Liaoning (Yingkou) Coastal Industrial Base: Liaoning (Yingkou) Coastal Industrial Base is located to the south of the city’s Minxing River, to the north of the north tributary of the Daqing River, and to the west of Zhuanglin Road. The planned area and the area in the initial phase are 120 sq km and 20 sq km respectively.
3. Liaoxi (Western Liaoning) Jinzhou Bay Coastal Economic Zone
4. Jinzhou Xihai Industrial Zone: Jinzhou Xihai Industrial Zone is located in Jinzhou along the Jinzhou Bay. The industrial zone is to the south of Kunshan Road and to the north of the Port of Jinzhou. To the east and the west of the industrial zone are Huludao and Bohai Street respectively. The planned area is 22.76 sq km.
5. Huludao Beigang (North Port) Industrial Zone: Huludao Beigang (North Port) Industrial Zone is located to the north of Jinhu (Jinzhou-Huludao) Feeder Railway and to the east of the Lianshan River. The Grand Coastal Freeway runs through the industrial zone. The planned area and the area in the initial phase are 21.87 sq km and 16.87 sq km respectively.
6. Liaoning Dandong Industrial Park: Liaoning Dandong Industrial Park is located 10 km to the east of the Port of Dadong along Yalu River Avenue. The planned area and the area in the initial phase are 30 sq km and 18.6 sq km respectively.
7. Dalian Zhuanghe Huayuankou Industrial Park: Dalian Zhuanghe Huayuankou Industrial Park is located in Mingyang Township, Zhuanghe (county-level city), Dalian. The planned area and the area in the initial phase are 50 sq km and 15 sq km respectively.