To foster industrial upgrading and strengthen economic development momentum, Xiamen City has recently issued the Measures to Encourage Enterprises to Expand Effective Investment and Promote Industrial Project Breakthroughs in Xiamen (referred to as the Measures). The aim is to boost effective investment, reduce financing costs, expedite subsidy payments, streamline construction approval processes, support large-scale equipment upgrades, facilitate corporate transformation and upgrading, and advance industrial project breakthroughs.

Currently, Xiamen is advancing comprehensive reform initiatives to deepen reforms across the board, integrating technological innovation with industrial innovation, resolutely accelerating economic restructuring and upgrading, and rapidly building a modern industrial system characterized by "4+4+6" sectors. The introduction of these measures is a concrete step towards injecting new momentum into the city's industrial development, fostering sustained and stable improvement of its economy.

The Measures stipulate that for industrial enterprises in Xiamen City implementing newly established facilities or expansion projects (including technical transformation and capacity enhancement) from 2025 to 2026, with an annual total investment of RMB 10 million or more, or annual equipment investment of RMB 5 million or more, subsidies will be provided based on the amount invested in production equipment and productive facility construction (referred to as "investment").

For projects with investments up to RMB 500 million, a maximum subsidy of 10% of the investment is offered, capped at RMB 30 million per project. For projects exceeding RMB 500 million in investment, a 10% subsidy is provided, with a cap of RMB 60 million for investments up to RMB 1 billion. Beyond RMB 1 billion, the maximum allowable subsidy increases by RMB 10 million for every additional RMB 500 million in investment. Projects that receive national or provincial special support for high-quality development, technological transformation, or ultra-long-term government bonds are also eligible for these policies.

Reducing Corporate Financing Costs

Enterprises engaged in national large-scale equipment renewal refinancing projects, national major strategy and critical area safety capacity construction projects, or industrial enterprise expansion and capacity enhancement projects are entitled to support from technological innovation. This enables them to access financing at a cost of 2% per annum. For portions benefiting from central government fiscal interest subsidies, the financing cost is reduced to 1% per annum, with terms aligned with the central government's subsidy policy.

Accelerating Subsidy Payments

Major provincial and municipal industrial projects can expedite subsidy payments based on project progress, achieving disbursement in the same year as investment. Enterprises annually settle accounts, with adjustments made for overpayments or underpayments.

Streamlining Construction Approval Processes

Newly constructed, renovated, or expanded industrial factories that meet current Xiamen industrial land control standards and contractual floor area ratio requirements, no longer require special process reviews.

Translated by Fujian Investment Promotion Center