In 2018, Jiaxing introduced 350 foreign investment projects, with a contractual foreign investment of $6.386 billion and an actual use of foreign capital of $3.14 billion, a year-on-year increase of 12.19 percent.
The city has introduced nine projects of Fortune 500 enterprises, 10 international leading projects, 44 billion-dollar industrial projects, 15 functional institutions and multinational companies, as well as 57 overseas innovation teams and high-end talent projects.
The actual utilization of foreign capital in the secondary industry in the city accounted for 59.84 percent of the total, while the high-tech industry attracted a foreign capital of $470 million, of which high-tech service industry increased by 14.64 percent.
In November 2018, the municipal government pledged to build a first-class business environment by vigorously tackling problems encountered by enterprises and investors in Jiaxing.
1.Take advantages of current national policies.
As the central government relaxes the limitations on proportions of foreign capitals in domestic manufacturing industries and service industry, Jiaxing city will keep pace with the latest trend and take a series of measures to bolster the local industry.
With emphasis on digital economy such as the integrated circuits industry, high-end equipment manufacturing industry such as new energy vehicles, and modern service industry such as financial industry, it will intensify the efforts to attract foreign investments, and implement preferential policies for each foreign investment projects in the above-mentioned industrial fields.
2. Strengthen land use protection for major foreign-invested projects
Actively encourage foreign investment projects to apply for provincial-level foreign-invested manufacturing projects, leading foreign-funded projects and demonstration foreign-funded projects.
Support foreign manufacturing enterprises to improve land use efficiency through measures such as plant addition, factory renovation, and internal land consolidation under the premise of meeting the city's urban planning goal without changing the nature of industrial land.
3. Grant more financial support
For major foreign-funded projects in key industries such as the digital economy and high-end equipment manufacturing industry that have been officially approved, four percent of the total amount of foreign investment in Jiaxing will be granted. (when the actual use of foreign capital is more than $100 million in the year, and more than 80 percent of the funds are for fixed assets investment, not including land investment)
Set up targeted funds to support major foreign investment projects, of which the national fund reached 10 billion yuan ($1.45 billion) and the provincial fund reached 5 billion yuan. For regional headquarters and functional organizations of multinational corporations established in the city with independent legal entity qualifications contributing more than 50 million yuan to local GDP, a reward of no more than 30 million yuan will be granted.
4.Encourage foreign companies to invest in research, development and innovation of new technologies
For foreign-invested R&D centers that meet the qualifications for tax exemption, they can enjoy the import tax exemption policy for scientific and technological innovations. Foreign-funded enterprises are also encouraged to carry out intellectual property pledge loan business. The local government will provide support as required. (responsible departments: Municipal Party Committee, Science and Technology Bureau, Municipal Human Resources and Social Security Bureau, Municipal Bureau of Commerce)
Jiaxing will strictly protect intellectual property rights and strive to establish an intellectual property court where civil, criminal and administrative trials on related cases can be conducted. The criterion of intellectual property infringement will be ascertained. Acts such as infringement on trade secrets, trademark infringement and commercial identity confusion, unfair competition, patent infringement and online piracy will face more severe charges.
6. Establish a normalized response mechanism
The city will improve the pre-judgment system for export orders, and come up with specific supporting mechanism to help major industries and enterprises cope with trade frictions and guide them through financial and unemployment risks. Establish information and reporting system for business difficulties arising frmo trade friction.
7.Add fuel to the development of foreign trade
Vigorously explore emerging markets in Africa, ASEAN and Latin America, while maintaining momentum in traditional markets in the EU, Japan and South Korea. Encourage local enterprises to participate in exhibitions. Continue to support the development of integrated foreign trade service enterprises, and give small and medium-sized enterprises a boost to explore the international market.
8.Further expand import scale
Take full advantage of the opportunities brought by the China International Import Expo (CIIE). Increase the import volume of advanced technology and equipment, key components and high-quality consumer goods.
9.Increase export tax rebate support
Actively implement the national export tax rebate policy. From November 1, 2018, the tax rebate rate will be reduced from seven to five. In order to further speed up the progress of export tax rebates, the customs will simplify the rebate procedures for exporting enterprises with high tax credit ratings and sound tax credit records.
Carry out paperless declaration of export tax rebates to improve the efficiency of tax refund review, and shorten the average time for tax refunds to less than 10 working days. Optimize the export tax rebate service and help enterprises collect tax refund documents and declare tax rebates in a timely manner. Encourage integrated foreign trade service enterprises to provide tax refund services for small and medium-sized enterprises, and provide green taxation channels for large-scale key enterprises.
10.Initiate pilot projects of foreign trade reform
Actively apply for national cross-border e-commerce integrated pilot city to accelerate the development of local cross-border e-commerce. Try to make sure Jiaxing Port is included in the designated ports for imported goods such as meat, grain and fruits.