Preferential policies

Financial Policy

The finance is meant to do the following: encourage all types of financial institutes to set up branches in the new district and support private banks, rural banks, industrial investment banks, and venture capital funds; support development finance and projects in the new district in applying for loans from international financial organizations and foreign governments; support point-to-point capital cooperation between government and society and finance leasing in the new district; and support companies in the district in developing financing channels, including stock listing, issuing corporate bonds, debt financing, insurance assets management, and trust plans.

Fiscal Policy

Jilin province is to get funds from the national and provincial level to support its new district construction on a priority basis. It can distribute revenues from construction land use and leasing as its wishes and support new land reclamation projects and city infrastructure carried out by the Jilin capital, Changchun, in accordance with land consolidation planning and project fund usage.

Land policy

Jilin province will guarantee the land needed for the new district in Changchun on a priority basis and will manage all arable land and encourage overall land development and innovative usage in the new district, on industrial land, urban and rural construction land, and factory land and the whole province will get a requisition-compensation balance for arable land.

Industry Policy

To encourage innovation-oriented industrial development and preferential policies for cross-border transportation and customs clearance, Jilin has key projects for the new district, which is itself significant for the Belt and Road Initiative, the revitalization of the Northeast, and regional cooperation with the Tumen district.

These will act in the following ways:

1. Relaxing admittance restrictions and requirements Private companies will be encouraged to get involved in basic industries, infrastructure, public utilities, social undertakings, affordable housing, financial, social services. Intellectual property, land tenure, stocks, bonds, and forest rights, which can all be used for investment and could account for as much as 70 percent of total registered capital.

2. Encouraging entrepreneurships Jilin provides 2 years of financial support for business promotion projects and private entrepreneurships and fully supports the building of development zones, and allocates special funds for industrial clusters and public services. It has different amounts of financial aid for new companies for the first 3 years, based on their contribution to the local economy. It also encourages trade associations, unions, the Youth League, Women’s Federation, and other organizations to support entrepreneurships and government at all levels will allocate funds for these organizations.

3. Supporting scientific and technological innovation In this, the government is doing the following: encouraging companies to merge with foreign science and technology enterprises and to employ foreign experts and after getting provincial government approval they can get fees of acquisition from the provincial and local governments; encouraging the marketing of technological developments and universities and colleges and research institutes and large corporations to open labs and to do technology consulting, and offers 5 years of financial aid based on the contribution to the local economy; encouraging key technical staff to buy shares and the local government can provide investment capital to these people through rewards or borrowed funds and anyone who contributes a lot or provides innovative equipment can get more rewards through the local government.

4. Expanding markets The government needs to do the following: support local enterprises in increasing their markets and in giving financial aids to those who take part in international exhibitions; support the modern service sector, headquarters development, and commercial real estate, while providing funds; and encourage enterprises to create their own brands through a reward system.

5. Increasing financial services What is needed are the following: support for private companies in issuing bonds and going public, with local government giving financial aid to these companies; making better use of all kinds of funds to support private economic development; giving more rewards to those who contribute to the local economy; support for small-loan companies and rural banks, where the largest shareholder of a small-loan company should hold less than 50 percent, but a company with more than 500 million yuan ($75 million) does not have to follow this rule; support small-loan companies that do well in setting up branches and encourage financial institutions to make loans to private companies.

6. Promoting the service sector

7. Opening markets

Almost all industries in the service sector, including communications, transportation, infrastructure, financing and logistics, can be open to private and foreign capital And should do the following: support social capital for education and non-profit medical institutes; improve pricing in the public service sector, push competitive pricing and gradually narrow the scope of government pricing; be part of the “Belt and Road” program, where the key thing is the China-South Korea FTA; improve the service trade zone in Changchun, Jilin and Yanbian and promote service outsourcing and Northeast Asia regional cooperation. Also, foreign service parks with provincial government approval should be covered by provincial development zone policies.

8. Key breakthroughs

In this government needs to do the following: promote traditional consumer services and emerging service industries; support the service industry system with a stronger industrial chain for R&D and sales; encourage the commercialization of research findings, with no less than 70 percent of the income from them to be given to the research team; combine big data and data center development with operations centers, and disaster recovery networks; give priority to cloud computing and big data enterprises in hi-tech status and preferential electricity programs; setting up a special big data management institute to promote government data sharing and improve data security; improving the financial and capital markets and promote company financing in the service sector; establishing a well-designed, modern logistics system with advanced technology and greater efficiency. Any logistics companies that meet certain requirements can qualify for 500,000 to 1-million yuan.

9. Developing tourism

This calls for providing 2-million yuan in subsidies for each new 5A scenic spot and other subsidies for highways to scenic spots at the 3A level or higher; making better use of barren hills, wasteland and saline-alkali soil to develop tourism and healthcare service programs, with land prices set at the lowest price possible for industrial land; and increasing the competitiveness of the culture industry, with rewards for works and original ideas that win national or international awards.