“Suggestions on Encouraging Foreign Investment of Fujian Provincial People’s Government” (Fujian Policy 2012 No. 35) is quoted as follows:

A) Optimizing Structure of Foreign Capitals

1) Foreign capitals shall be encouraged to flow into advanced manufacturing industries, high and new tech industries, modern service industries and strategic emerging industries. For any key project under negotiation that involves a total investment of more than 500 million dollars, a support fund of RMB 1 million yuan at maximum will be granted to each project; for any project based in Sanming, Nanping, Longyan and Ningde that involves a total investment from 100 to 500 million dollars, a support fund of RMB 500,000 yuan at maximum will be granted to each project. For Global Top 500 multinational corporations and Taiwan Top 100 enterprises to invest in Fujian, during the negotiation and progressing phase of such projects, a support fund of RMB 200,000 yuan at maximum will be granted to foreign trade departments for each project.

2) Identified foreign-funded projects of the Encouraged Category, within the total investment, shall enjoy province-level support of import interest subsidies for imported equipment. Qualified foreign-funded projects shall be included in Fujian provincial key technological transformation plan, and enterprises included in it shall enjoy a subsidy rated 5% of the purchase cost of world advanced technological equipment.

3) As to foreign-funded industrial enterprises which pay taxes in Fujian, when their annual revenues exceed respectively RMB 1 billion, RMB 5 billion and RMB 10 billion for the first time, they shall get a reward worth respectively 20%, 25% and 30% of the increase on “three taxes” (namely, value-added tax, business tax and business income tax) at local level compared with the last year’s. As to foreign-funded industrial enterprises which pay a total tax exceeding RMB 5 million for the last year and a total of “three taxes” increasing by 30% over the last year, for the parts above the 30% increase, the enterprises shall get a reward worth 30% of the increase on “three taxes” they pay at local level. The rewards abovementioned shall be paid by the financial department of the county (municipality, prefecture) where an enterprise is based, in accordance with the territorial principle; if a certain proportion of taxes are paid at provincial level or prefecture-city level, the same proportion of the reward shall be returned to the county municipality.

4) National and provincial supportive policies and measures about industrial restructuring and reviving plan, industrial transformation and upgrade, technical transformation, energy saving and emission reduction, science and technology development and headquarters economy shall be equally applicable to qualified foreign-funded projects.

B) Broadening Channels of Capital Attraction

5) Fujian-based enterprises shall be encouraged for merger and acquisition of competitive industrial capitals and financial capitals abroad. Every year, a batch of key enterprises with financing volumes exceeding 10 million dollars will be promoted after careful selection. For the expenses at prior period on assets appraisal and formulation of business proposal, a 50% subsidy will be offered to them, not more than RMB 300,000 for each enterprise.

6) Enterprises listed abroad shall be guided to make round-trip investment by establishing investment-oriented companies and venture capital companies, so as to enhance the efficiency of fund use.

7) Foreign businessmen shall be encouraged to invest with the RMB they legally hold abroad.

8) Foreign-funded enterprises shall be supported to achieve capital and share increase by using capital reserve, undistributed profits, foreign debts, and stock rights of China-based companies held by foreign businessmen. For the registered capitals thus increased, administrative charges for industry and commerce administration and registration fees on enterprises shall be exempted. And the department attracting foreign investment that boosts capital and share increase for the enterprise shall obtain a reward worth 2‰ of the actual capital increase amount.

C) Strengthening Factor Guarantee

9) Foreign-funded projects that are qualified for being included in provincial key projects shall be included in or treated as provincial key projects for management, having priority in getting factor guarantee. As for foreign-funded projects of the Encouraged Category, land supply shall be guaranteed in the first place; when the base price of land grant is determined, a price not lower than 70% of the price of the land class at the project’s location, as compared with “National Standard of Bottom Price of Industrial Land Grant” shall apply. Favorable policies can be offered to important projects that involve the use of forest land and sea area, and sea reclamation plan. Qualified foreign-funded enterprises are allowed to utilize existing plant areas and workshops for transformation and building, and no extra land-transferring fees will be charged on condition that their usages are not changed.

10) Development zones above province level shall have priority in receiving foreign-funded projects, and Taiwanese Investment Zone shall have priority in receiving Taiwan-funded projects.

11) When municipalities and Pingtan Comprehensive Pilot Zone establish specialized business promotion agencies like business promotion bureau or investment promotion bureau, aiming at attracting foreign funds, the province shall offer a one-off working support fund of RMB 500,000.

12) As to overseas high-level talents of business starting and innovation, industrial leaders, outstanding business starters, overseas talents who meet the conditions specified in the Guiding List of Introduction of Talents in Urgent Needs, and overseas technical experts introduced by joint research and development centers and key labs, a talent contact and service system shall be established so that their work and life in Fujian will be greatly facilitated. The issuance of their visas for China, work permits in China and foreign expert certificates shall be given priority in handling, and they shall be assisted when handling visa extension for staying in China. Overseas talents that contribute a lot to Fujian’s economic and social development may be recommended as candidates for Fujian Friendship Award and National Friendship Award.

D) Enhancing Service Level

13) Expanding the authority of examination and approval by municipalities, from July 1st, 2012, all municipalities shall be granted the right to examine and approve: foreign-funded projects of Encouraged Category with a total investment worth less than US$ 300 million and foreign-funded projects of Allowed Category with a total investment worth less than US$ 100 million.

14) Improving control of exchange settlement of foreign exchange capital is to enhance service efficiency.

15) For Foreign-funded enterprises that are operating legally but unable to contribute capitals as scheduled, the investment period may be prolonged to a reasonable extent.

16) Simplifying procedures for examination and approval, and reducing the scope of examination and approval to minimum, departments like development and reform committee, economic and trade department, foreign trade and economic department, land and resources department, planning and construction department, environment protection department, forest department, oceanic and fishery department and foreign exchange administration shall offer active instruction and service in advance, so as to facilitate rapid settlement of foreign-funded projects.