Why should you invest in Huairou?
Wang Xuanjun is an attorney at law with the Beacon Law Firm in Beijing, People's Republic of China. He graduated from Beijing University with a LL.B. degree and from the University of International Business and Economics with an MBA degree. Mr. Wang worked for China's Court of Railway Transportation, China National Foreign Trade Transportation Corp. ("Sinotrans") and Gong Cheng Law Office, and served as law counsel to a number of international enterprises. For Beacon Law Firm, Admiralty & transportation (all means), corporate & joint venture, merger & acquisition, international investments are his main legal practice areas.
By Wang Xuanjun
T IS NOT SO EASY for investors to find a better site all over the world. Then, why shall you be attracted to invest in Huairou, one of the suburban counties of Beijing, the People's Republic of China? You may get the answer by reading this summary introduction to Huairou County in respect of investment environment, projects encouraged, economic and technology development zones, favorite policy and related particulars.
1. GOOD INVESTMENT ENVIRONMENT
The county seat of Huairou, as its economic center, is located 50 km from the Beijing city proper, 32 km from the Capital Airport, 170km from Tianjin Harbor (Xingang Port). In the territory of Huairou County there are three railway lines (Beijing-Chengde, Beijing-Tongliao and Datong-Qinhuangdao) and three big freight railway stations by which more than 100 million metric tons of cargo can be handled per year. Also available are eleven arterial highways including Beijing-Miyun and Huairou-Fengning and 20 passenger transport lines.
The County is entitled "A Flower of the Suburbs of Beijing" thanks to the well afforested, beautified streets, gradually renewed municipal construction, scattered gardens, trees, flowers, fountains and pavilions in the area. There are 22 middle and small sized reservoirs and 17 rivers flowing through the area in which the water resources are abundant and clear of pollution. Huairou is thus an important conservation and supply area of water resources for Beijing.
Every kind of services are now available in the support of advanced telecommunication facilities, famous financial institutes, many electric power stations and etc.
2. PROJECT ENCOURAGED
Following projects or the projects related to following industries are especially encouraged by the People's Government of Huairou County on the basis of conformity to INTERIM PROVISIONS ON GUIDANCE FOR FOREIGN INVESTMENT (Jointly promulgated by Decree No. 5 of the State Planning Commission, the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation on June 20, 1995) and the valid CATALOGUE FOR THE GUIDANCE OF FOREIGN INVESTMENT INDUSTRIES:
(1) Reinforced processing of agricultural products;
(2) Machinery industry;
(3) Electronic industry;
(4) Food and beverage;
(5) Textile industry;
(6) Fine chemistry;
(7) Processing of non-ferrous metals;
(8) New types of building materials;
(9) Manufacture of medical instrument;
3. SIX ESTABLISHED ECONOMIC and TECHNOLOGY DEVELOPMENT ZONES
To promote the economic development and after obtaining the approval by the People's Government of Beijing Municipality, the local government of Huairou established six economic and technology development zones as follows:
(1) Yanqi Industrial Development Zone;
(2) Yanqi Agricultural Economic Development Zone;
(3) Wantong Private Economic Development Zone;
(4) Fengxiang Science and Technology Development Zone;
(5) Village/Township Enterprises Development Zone;
(6) Tourism and Real Estate Development Zone.
Preferential tax treatment shall be given to the enterprises established in the development zones in accordance with the provisions of INCOME TAX LAW OF THE PEOPLE'S REPUBLIC OF CHINA FOR ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES and other related laws and regulations.
4. FURTHER FAVORABLE POLICIES
In order to attract foreign investment, the People's Government of Huairou County formulated PROVISIONS ON ENCOURAGING FOREIGN INVESTMENT ("PROVISIONS") in 1992 in accordance with the laws, regulations and policies by the State Council of PRC and/or competent authority of Beijing Municipality. According the PROVISIONS, foreign investment enterprises established in Huairou County shall enjoy more favorable treatments than that provided by the related laws and regulations.
Hereby provided are some special articles of the PROVISIONS:
The foreign investment enterprises satisfying one of following conditions shall, from the year in which it begins to make profits, obtain 100 percent of the income tax paid in the first to fifth year and 50 percent of the income tax paid in the sixth to tenth year from the related financial revenue of the County or Villages/Towns:
(1) to be of a production nature and scheduled to operate for a term of not less than 10 years;
(2) to engage in development projects such as municipal fundamental construction, standardized industrial workshop, etc. and be scheduled to operate for a term of not less than 15 years;
(3) to be scheduled to operate for a term of not less than 10 years, engage in the such industries as finance, services, tourism, recreation, and with foreign investment amounting to not less than USD 1 million."
Technically advanced enterprises and the enterprises making products instead of imported products, which are confirmed by the People's Government of Beijing, shall, from the year in which it begins to make profits, obtain 100 percent of the income tax paid in the first to fifth year and 60 percent of the income tax paid in the sixth to tenth year from the related financial revenue of the County or Villages/Towns. ¡¡ "
(Note: The above provisions are subject to the changes of laws, regulations and rules by the relevant authorities.)
All investors, who are to invest in Huairou County, are suggested to retain a sound law firm to check and confirm all points related to the legal affairs before material decisions are made.
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1999, Wang Xuanjun
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