Shandong's measures to promote private economy development

Updated: Nov 19, 2018 Print
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For the purpose of continuously optimizing the development environment, promoting the high-quality development of the private economy across the province and further making use of the important role of the private economy in the promotion of supply side structural reform and the transformation in which new growth drivers are replacing the old ones as well as in the construction of a modern economic system, Shandong provincial government, on Nov 15, issued the "Opinions on the Support of High-Quality Development of Private Economy", proposing 35 specific measure in five aspects in order to provide policy support and point out the development direction for the private enterprises.

Promote reduction of tax and fees

  • Enterprises failing to pay taxes on time due to extenuating circumstances can file an application in accordance with relevant tax laws and regulations. Once approved, the payment can be postponed for a maximum period of three months.

  • For eligible enterprises that have been participating in the social insurance scheme and making efforts to stabilize employment, 50 percent of the total unemployment insurance fees paid by enterprises/employees will be returned.

  • The tentative policy that the overall percentage of unemployment insurance paid by enterprises/employees is reduced from three percent to one percent will continue to be in force upon expiration in April of 2019.

Lower the cost of land use

  • For industrial projects using land intensively and that are among the priority industries identified by the municipal governments, land can be transferred at a bottom price no less than 70 percent of the land transfer price in accordance with their levels locality-wise stipulated in the "National Bottom Price Standards for Industrial Land Transfer".

  • For the rebuild, expansion of industrial, mining factories, warehouses and the utilization of underground spaces to improve floor ratio or building density on industrial, warehouse lands, enterprises will no longer need to make up the balance for the land use on the condition that such rebuild, expansion or utilization conforms to the planning and doesn't change the purpose of the land use.

Reduce the cost of logistics

  • Toll gates funded by the governments on national, provincial roads (excluding highways) will be eventually removed within three years.

Support the innovative development of private enterprises

  • For each enterprise that builds a national technology and innovation center or a manufacturing innovation center, the provincial treasury will provide financial support ranging from 10 million yuan ($1.5 million) to 30 million yuan.

  • The government will initiate the nurturing of gazelle, unicorn enterprises and provide tier-wise awards, financial support for such enterprises identified.

Encourage the private enterprises to expand into domestic and international markets

  • From 2019, the provincial treasury will improve the subsidy amount to cover over 80 percent of the booth fees for enterprises to participate in key exhibitions organized for Belt and Road countries and emerging markets.

  • For each "overseas warehouse" established and identified by the provincial government, a financial support package of 1.5 million yuan is provided.

Resolve financing difficulties for private enterprises and improve financial services

  • For transactions of up to 5 million yuan in one bill by small and micro enterprises and transactions of up to 30 million yuan in one bill by private enterprises, cash support will be provided in a prioritizing manner.

  • The government supports financial institutions in the issuance of loans/assets-backed securities for small and micro enterprises and increases the underlying assets from no more than 1 million yuan to no more than 5 million yuan for each credit account.

Create fair competition ground and expand private economy's development fields

  • Based on merits, the government will select a batch of high rail, airport and port projects for social capital investments as models and establish a scientific and reasonable return on investment mechanism to attract social capital into the construction and operation of such projects.

  • Through assets securitization, special merchandize and cooperation between government and social capitals (PPP) to attract private capitals to invest and operate rural water supply, gas supply, fuel gas supply and disposal of waste water and garbage, rural rail traffic parking facilities and other municipal infrastructure projects.

  • For acquisitions and mergers conducted by the top 500 private companies, publicly listed companies and industry leader companies, 50 percent of the legal, financial and other service fees can be subsidized after the successful mergers and acquisitions. The amount of subsidies cannot succeed 1 million for each merger/acquisition.

Improve policy implementation methods

  • In the next half of 2019, a third party evaluation on the effects of policy implementation will be performed across the province in order to revise, improve relevant policies timely, resolve difficulties and promote a full solid implementation of the policies.

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