“Ten Measures of the Fujian Provincial Government to Promote Attraction of the Global Top 500 Companies” (Fujian Policy 2012 No. 356) is quoted as follows:

Global Top 500 Enterprises are concentrated with quality factor resources like capital, technology, talent and management, making an important pillar for modern economic development. To better introduction of Global Top 500 (referring to the overseas Global Top 500 enterprises published by “Fortune” in the last three years, with an actual registered capital exceeding US$ 30 million and to promote scientific development and leaping development of Fujian, lately Fujian drew up and issued 10 policies to attract the enterprises, which are as follows.

1) Enhancing Planning and Guidance. To promote attraction of the Global Top 500 Companies (“Top 500” hereinafter) to Fujian Province, the Fujian provincial government, in consideration of the industrial strength and development orientation of the province, is formulating the Catalogue of the Key Industries for Foreign Investment, and building the information database of investment and project pool for the Top 500. The aim is to attract the Top 500 to the advanced manufacturing, high-tech industry, strategic emerging industry and modern service industry in the province. Projects to provide tailored services for the Top 500 to settle in Fujian are prioritized in the provincial annual plan.

2) Providing Stronger Fiscal and Tax Incentives. With regard to the new investment projects established by the Top 500 in Fujian, subsides valued at 1-3% of their paid-in registered capital will be granted and funded annually by the VAT, business tax and corporate income tax paid to the local government by the Top 500 since they settle in Fujian. Starting from the year in which their eligibility is verified, the Top 500 are rewarded equivalent to 60%-80% of their tax contribution to the local government in the first 2 years and 30-40% in the next 3 years. Starting from the year in which their eligibility is verified, the Top 500’s payable administrative fees that are within the authority of the local government will be fully exempted or refunded in the first 2 years and at half in the next 3 years. Regarding the incumbent Top 500 in Fujian, they are encouraged to expand investment in the province. If their additional investment (the original investment excluded) reaches the criteria defined in this document, they are eligible for a one-time reward. The above-mentioned rewards are delivered by the county (county-level city or district) finance bureau where the company is located according to the territorial principle. If the awards are funded by the provincial or municipal government, equal proportion of reward funds will be returned to the county (county-level city or district) government for delivery.

3) Increasing Financial Support. The Top 500 are encouraged to expand financing channels through public listing, issuance of corporate bonds and short-term financing securities. They are supported to develop innovative financial products such as captive leasing, mid-and-long-term leaseback, trust financing and intellectual-property-backed financing. Overseas refinancing, offshore guaranteed financing, intra-group lending of foreign exchange, management of exchange cash pool, spot exchange settlement and sale via intra-group financial companies, parent company asset-backed financing, expansion of collateral scope for credit and other financial operations by the Top 500 are all encouraged in the province. Renminbi-denominated credit delivered to the foreign investors in Fujian by their parent companies, intra-group affiliated members and offshore financial institutions is welcomed. The lending rate shall be determined on full consideration of the company’s financial and operational conditions, so as to reduce the company’s financing cost.

4) Scaling Up Human Resource Capacity. The senior management and technical talents of the Top 500, if accredited by the relevant authorities, are eligible for housing and living allowances that vary according to their ranking and position. The allowances are no more than 50% of their individual income tax paid to and retained by the local government. The foreign senior managers and technical talents introduced by the Top 500 to Fujian will receive government support to apply for the national “Thousand Talent Plan”, “Thousand Foreign Expert Plan” or “Top-Notch Foreign Expert Plan”. Work permit in 3-5 years term and Foreign Expert Certificate are offered to the qualified foreign personnel, and those with outstanding contributions will be selected as the candidates for the provincial or national “Friendship Award”. If the staff obtain national qualification certificates through the internal vocational training programs, the Top 500 will receive training subsidies which vary according to the level of certificates obtained by the staff. Technical colleges are encouraged to nurture and provide skilled graduates tailored for the Top 500. Institutions of higher learning shall also cooperate with the Top 500 to develop innovative training programs such as “order-like training” and “targeted training” to better meet the companies’ urgent demands for skilled employees of various levels and types.

5) Boosting Technological Innovation. The Top 500 that set up key (engineering) laboratories, engineering (technical) research centers, technology centers, technology development bases and other technological innovation platforms at and above the provincial level are eligible for subsidies equivalent to 30% of their investment on the purchase of new equipments for research and development purposes with the ceiling of RMB 5 million delivered by the verification and approval authorities. The Top 500 that set up research and development institutions with independent legal person status are eligible for subsidies up to RMB 20 million.

6) Ensuring Land Use. The investment projects of the Top 500 have preferential access to land use. The provincial government allocates land quota for the Top 500 and can reserve land for their investment expansion. More quota will be given to the Top 500, if they use forestland, sea area and reclaimed land. When the sea area is used, the Top 500 can claim 30% credit against the sea area use fee paid to the local government, or 50% credit if the project is located in the bay reclamation planning area. Additional quota will be given to the Top 500, if they use forestland to develop the eco-forest resources for emerging industries such as tourism and non-wood processing. The Top 500 are eligible for 30% discount off the land price prescribed in the National Standards for the Minimum Transfer Price of Land for Industrial Purposes, or get exempted of the additional land transfer fee, if they rehabilitate and use the existing industrial premises without changing the land functions.

7) Promoting Trade Facilitation. The provincial government will provide guidance to and reduce the approval time limit for the Top 500 to timely apply for upgrading their qualification status in the classification systems of customs, inspection and quarantine. The Top 500’s import of complete sets of equipments is eligible for express clearance and joint inspection, and the service fees are halved. The Top 500’s import of commodities is inspected through sampling and cleared simultaneously to fasten the clearance process. The Top 500 are encouraged to invest in the Ping Tan Comprehensive Experimental Zone and special customs supervision areas where preferential policies are applied.

8) Expanding Investment Channels. The provincial government will collaborate with the conglomerates, industrial associations and chambers of commerce in Taiwan, Hong Kong Special Administrative Region and Macao Special Administrative Region of China to jointly attract investment from the Top 500. Liaison and communication with the overseas Fujianese business communities will be intensified to leverage their relationship networks so as to mobilize foreign investment to Fujian. The provincial government will strengthen partnership with globally recognized investment promotion agencies and trade associations to push for efficient and targeted investment. Each investment project from the Top 500 is earmarked with RMB 1 million at most as the working fund.

9) Improving Government Services. Any preferential policies for all kinds of businesses released by the Fujian government are equally applicable to the Top 500. The preferential policy for the Top 500 will be tailored to each of their investment projects, and the head of the local government will be directly responsible for building a one-stop service team for the projects. The one-stop service covers project liaison, review and approval, construction and operational management.

10) Creating a Business-friendly Environment. The education bureau of the county (county-level city or district) where the Top 500 are located, is responsible for coordinating and processing the kindergarten and school enrollment applications of the management and technical talents’ children. Those who work in the Top 500, if eligible for government-subsidized housing, will enjoy priority access. Protection of the Top 500’s intellectual property rights (IPR), including trademarks, patents and copyrights, will be intensified. Counterfeit, piracy and other IPR violations must be vigorously cracked down.

The Global Top 500 Companies herein refer to subsidiaries (with a minimum paid-in registered capital of RMB 30 million) set up in Fujian by the foreign companies that have been listed on the Fortune Global 500 over the past 3 years. The projects of other foreign leading enterprises, with the approval of relevant authorities, are also eligible for the preferential treatment specified herein with subsidies of being RMB 30 million at most per project. The financial projects invested by the Global Top 500 Companies in Fujian are governed by the Fujian Provincial Government’s Notice on the Nine Measures to Support the Development of the Financial Sector (No. 12, Min Zheng 2012).