III . Investment
(i)Policy and Administrative Rules
Catalogue of Related Laws
Foreign Trade Law of the People’s Republic of China
Customs Law of the People’s Republic of China
Law of the People’s Republic of China on Import and Export Commodity Inspection
Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures
Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures
Law of the People’s Republic of China on Foreign-Capital Enterprises
Company Law of the People’s Republic of China
Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine
Law of the People’s Republic of China on Control of the Entry and Exit of Aliens
Law of the People’s Republic of China on the Control of the Exit and Entry of Citizens
Securities Law of the People’s Republic of China
Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises
Individual Income Tax Law of the People’s Republic of China
Law of the People’s Republic of China on the Administration of Tax Collection
Environmental Protection Law of the People’s Republic of China
Law of the People’s Republic of China on Evaluation of Environmental Effects
Law of the People’s Republic of China on Promotion of Cleaner Production
Law of the People’s Republic of China on Prevention and Control of Desertifi cation
Marine Environment Protection Law of the People’s Republic of China
Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution
Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste
Law of the People’s Republic of China on Prevention and Control of Water Pollution
Law of the People’s Republic of China on Prevention and Control of Environmental Noise Pollution
Law of the People’s Republic of China on Prevention and Control of Radioactive Pollution
Frontier Health and Quarantine Law of the People’s Republic of China
Labour Law of the People’s Republic of China
Trade Union Law of the Peoples Republic of China
Searching Website for the Related
Laws
1 . Searching System of Law sand Regulations of China (website of National People’s Congress of China)
http://law.npc.gov.cn:87/home/begin1.cbs
2. China Legislative Information Network System
http://www.chinalaw.gov.cn/jsp/jalor/index.jsp
3. Ministry of Commerce
http://www.mofcom.gov.cn
The above-mentioned websites are for reference only.
(ii)Guidance for Foreign Investment
(1)Key Encouraged Industries with Foreign Investment
Electronic & Information Industry
The development of har dware production has been inclined to such fields as telecom products, computers and network products, digital video and audio products, new modes of display, and newtype electronic components, in particular
the integrated circuit and auto electronic products. The development of the software industry, on the other hand, is led by two software parks in Fuzhou and Xiamen that specialize in the development of application software and operating systems.
Machine Building Industry
Automobile: Mid-upper class passenger cars as produced by South-east Auto and Daimler Chrysler Fujian, buses of large and medium capacity as produced by Xiamen King Long, remodelled vehicles and dumpers produced in North-west Fujian as well as the development of key assembled and accessory parts.
Ship-Building and Maintenance:The four established shipbuilding bases of Xiamen, Mawei, Quanzhou and Fu’an have enabled Fujian to become the shipbuilding building centre of the southeast coast. The versatility of Fujian’s ship-building industry can be seen not only in the efforts to optimise the series of cargo containers, high-power towboats and tunny fishers, but also in the development of 53,800-ton bulkers and 4,900-ton roll-on/rolloff ships for cars. Besides, the manufacture of shipping devices is another concern in the
industrial development.
Electric device and Equipment Manufacture: Utilizing advanced technology, this industry has placed great emphasis on strengthening the manufacture of devices for electricity transmission and distribution as well as the controlling devices, electrical equipment and electric motors.
Engineering-Machinery Building:The development has been focused on the fi ve main product series as loaders, excavators, road roller, forklifts and road building machinery. Efforts have also been made to forge the relevant chains of production in this sector.
Petrochemical Industry
Fujian is speeding up the development of its oil refinery-petrochemical integrated projects, placing the priority on constructing Meizhou Bay and Haicang Petrochemical
Bases as well as Fuzhou Jiangyin Advanced Chemical Park. The Province attaches special importance to the manufacture of synthetic resin, synthetic fiber and synthetic rubber together with their subsequent processing and also encourages the production of organic and advanced chemical products with high added value and in high demand.
Petrochemical Sector: Focusing on the oil refinery-petrochemical integrated project, affords have been made to coordinate the development of the upper stream with that of the lower stream in this industry, and to form six main industrial chains such as engineering plastics and synthetic resin.
Advanced Chemical Sector: Supporting the construction of advanced chemical production bases manufacturing such products as sodium silicate, silica, oxalic acid and fl uoride with the emphasis on eight major classes of products such as plastic
additives and coating products.
Chemical Raw Material and Fertilizer Industry: Emphasizing development the production of basic chemical raw material
such as formaldehyde and liquefi ed ammonia and on raising the portion of non-fertilizer chemical products in the total output.
Hi-Tech Industry
Biotech and Biomedicine: Importance is attached to the R&D of transgenic feed enzyme, diagnosis reagent, marine specific
medicine, new type of bio-pesticides and bio-fertilizers.
New Materials: Focusing on the R&D of electronic material, semiconductor material, crystal material, nano material,
material of membrane function, micromolecular material of new functions, ecomaterial, bioceramic material and other special ceramic materials.
Environmental Protection: Special attention is paid to this area, in particular the water and air pollution control technique, solid waste processing technique, clean production and low emission technique, the energy-saving techniques and new processing craft integrated in the production of the high energy consumption industries, the new energy-saving techniques applied in industrial kiln and furnace as well as the key techniques in saving or replacing the petrol oil.
Optoelectronics: Focusing on the R&D of integrated auto controlling system, intelligent industrial controlling parts, new types of sensors, numerical controlling machine tools and the open numerical controlling system.
(2)The policy on foreign exchange
According to“ the Foreign Exchange Management Regulations of People’s Republic of China”:
(1)The profits of the foreign-invested enterprises, after legally taxed, are allowedto be remitted outside of China;
(2)The Foreign-invested enterprises may exchange the Chinese currency (RMB) into foreign currency under the current
items.
(3)The foreign-invested enterprises in bonded areas and export processing areas are allowed to establish the special-purpose foreign currency of the current items and
the capital items, and a reserve of foreign currency.
(iii) Establishing Stipulations Related to Foreign-invested Enterprises
(1)The form of establishment
According to requirements of“ Company Law”, there are mainly two forms for companies the register in China, namely
limited company and limited liability company.
(2)The lowest registration capital
According to the stipulations of “Company Law”, the lowest registration capital of a limited liability company is RMB30,000. Other related laws, administration laws that have a higher stipulation to the lowest registration capital of the limited liability company set up by the foreign investment
rules must be obeyed. The investment amount of all shareholders should not be less than 30% of the limited liability company’s registration capital. The limited liability company’s registration capital of one person is RMB100, 000. The shareholder must pay the money that“ Company Law” requires one time.
The registration capital of incorporated company set up by foreign investment should not be less than RMB30, 000,000.
The registration capital of an investment company set up by foreign investment should not be less than USD30, 000,000.
(3)The investing method
Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures and foreign-funded enterprises are the main foreign investing modes, others are foreign incorporated companies, investment companies, carving investment enterprises, research and development centres, fi nancial property management companies, Build Operate Transfer (BOT) and Transfer-Operate-Transfer (TOT).
(4) Examination and approval
National examination and approval: the encouragement class and permission projects with more than USD100 million (including
USD 100 million) of total investment, and the limited projects with more than USD50 million (including USD 50 million) of total
investment.
The Fujian provincial examination and approval: The encouragement class and permission projects with less than
USD100 million and more than USD30 million (including USD 30 million) of total investment, and the limited projects with less than USD50 million of total investment.
County, city examination and registration approval: The encouragement class and permission projects with less than USD30 million (including USD 30 million) of total investment.
(5) The examination and registration approval procedure
(iv)Residence Environment
Education
A nine-year compulsory education program is implemented in Fujian. There are 66 institutions of higher education and 9 adult education-oriented colleges. In addition, there are 2,422 high schools of various kinds, 11,560 primary schools and
67 special schools for physically challenged people.
Culture, Physics & Medical Care
The traditional operas are retained and developed in Fujian, Min, Puxian, Liyuan, Gaojia, and Xiang constitute its five major local operas, Moreover, there are over 20 minor kinds of operatic folk shows in the province. Fujian has 94 art ensembles, 74 theatres, 86 museums, 88 cultural halls, 84 libraries, 58 newspapers, and 174 periodicals. There are about 30,000 gymnasums and stadiums. The Fujian Provincial Sports Center accommodates 30,000 people. In 2005, Fujianese athletes won 8 gold medals in world competitions and took the fi rst place in 7 Asian events.
Entertainment
Fujian has 8 golf courses up to the international standard and more than 300 star hotels, including many fi ve star ones in
Fuzhou and Xiamen.
Shopping
The convenient shopping environment has been enabled by business outlets dotting throughout the urban and rural areas, and malls of multinational scale such as Metro, Wal-Mart, Carrefour and Trust-Mart have long settled in Fujian.
Government Services
The local governments in Fujian are committed to building a legal system that is open, just and fair, a government
mechanism that enables transparent and efficient operations; they are also devoted to protecting intellectual property rights and investors’ rights and interests. Both the provincial and municipal organizations are set up to provide one-stop services for foreign investments, from negotiation,
consultation, application assistance, to legal and fi nancial services.
Intermediary Services
Fujian’s environment is rendered even more attractive by its easy availability of convenient professional services of premier quality provided by accounts, auditors, lawyers, customs brokers, shipping agents and consultants.
Reference Price of Factors for Investment in 9 prefectur-level cities of the Fujian Province
(v)Reference Prices of Basic Elements
(iii)Government Offices
(iv)Related Websites
1.Government Websites
2.Websites Concerning Investment Attraction
