Article 14 To ensure the actual effect of the supporting funds for rewards and subsidies and other supporting measures, a third-party review team shall be organized to make a mid-term evaluation of an enterprise during its enjoyment of rewards and subsidies. Upon the expiry of its commitment period, the team shall also conduct a secondary evaluation and acceptance check of the enterprise, and make a just and facts-based comments on operations, project implementation and use of the rewards and subsidies by the enterprise.

(a) Mid-term Evaluation: One year after signing a letter of commitment, a Newly Introduced Key Enterprise shall receive a mid-term evaluation by a third-party review team, which will make comprehensive assessment of how it meets its commitments and makes economic contributions after its settlement. If the enterprise fails to pass the mid-term evaluation, the support for the enterprise shall be suspended and the enterprise shall be ordered to make correction within a given time limit. If the enterprise still fails to pass the evaluation after the correction, the support for the enterprise shall be terminated and the granted funds shall be recovered in full.

(b) Secondary Evaluation: Within six months after the letter of commitment expires, a Newly Introduced Key Enterprise shall receive an evaluation and acceptance check on its fulfillment of the tasks stipulated in its letter of commitment by the enterprise. If the enterprise fails to pass the evaluation, the enterprise shall be given a certain time limit to make correction and then apply for “reevaluation”. If it fails to pass the “reevaluation”, the support for the enterprise shall be terminated and the granted funds shall be recovered in full.

Article 15 If an enterprise practice fraud to obtain the funds or refuses evaluation and inspection of fund performance while enjoying policy support, in accordance with Regulation on the Punishments and Disciplinary Actions for Fiscal Violations (Order No. 427 State Council), such fund support shall be cancelled or recovered according to regulations and the enterprise shall be disqualified from applying for various fund support in Baiyun District for 5 years. In case of gross violation where conditions for dishonesty publication are met, the enterprise shall be included into the list of dishonest entities. If a crime is constituted, the enterprise shall be held criminally accountable in accordance with law. A third-party review agency or an expert who practices fraud and conceals facts shall be included into the list of dishonest service agencies or disqualified as expert according to relevant regulations; those who is involved in a crime shall be held criminally accountable in accordance with law.

Article 16 For an enterprise that fails to pass the “mid-term evaluation” or “secondary evaluation”, Baiyun District shall terminate the support measures and the appropriation of funds for the enterprise. The department designated by the District government will join the town or sub-district where the actual operation is located to recover the funds already appropriated for the project. The enterprise and its person in charge is forbidden to apply for other district-level support policies in five years.

Chapter V Supplementary Provisions

Article 17 The Special Funds for investment attraction are ensured by district-level finance and included into the annual budget. For an enterprise or a project that has a strong driving force and makes great contributions to the local economy, key support shall be given separately upon the approval of the district government.