Home >  Investment Guide

Several policies to support transferring industries in processing trade

Updated: 2019-04-29

1. To strengthen the guarantee of industrial land use for processing trade industries, and to give priority to incorporating them into the land supply plan as well as to the supply.

The industrial land acquired by the processing trade enterprises (the "enterprises") according to law may pay the land transfer price in installments as agreed in the contract, and the land transfer floor price may be determined at not less than 70 percent of the relevant standards for the industrial projects with the intensive use of land and in industries with development priority recognized by the province. The separate land use indicators shall be announced by the province in the annual land use plan. According to the annual land collection and storage plan, all counties and districts shall give priority to supporting the collection and storage of taking over construction land transferred from processing trade industries. To reduce the cost of enterprise land use, land transfer methods like lease, lease before transfer, and transfer combined with lease are encouraged.

2. To do a good phase-in in reducing social insurance premium rates in line with the unified work of the province. 

3. To optimize the distribution of fiscal expenditure and support the growth of processing trade in the city.

A special fund of 150 million yuan shall be set up for processing trade at the municipal and county (district) levels, and 30 percent and 70 percent of the funds shall be borne by them respectively. The funds are mainly used to subsidize the relocation of the enterprises, transportation expenses for exports, purchase of standard factories, electricity charges, personnel training, social security, and others. 

4. Financial institutions shall be encouraged to provide financial support for the processing of trade transfer projects undertaken by the city. Targeted monetary policies shall be implemented to increase credit resources in favor of the enterprises and guide financial institutions to reduce fees through product innovation, streamlined procedures, and improved service efficiency. Municipal-level and policy-based guarantee companies shall give priority to guarantee loans to the enterprises. 

5. One hundred percent of subsidies shall be given to the enterprises if they are newly introduced for the removal and transportation costs of production equipment incurred in the process of the transfer to the city, 50% of which shall be borne by the municipality and the county respectively; a subsidy of 60 percent of the expense incurred in the transportation of exports (from Yangquan to the port) shall be borne together by the city (30 percent) and the county (30 percent) equally. The process of exports transport shall follow the principle of proximity and economy, and the transportation fee shall be verified according to the average reasonable transportation price at the time of shipment, in addition to the transportation invoice. 

6. Standard workshops and office buildings shall be provided to the enterprises that are transferred to the city and settled in the economic and technological development zones, industrial parks and other industrial cluster areas according to their needs, and the rent shall be free for five years after the settling. 

A one-time subsidy according to the criteria of 200 yuan per sq. m. shall be given to enterprises who purchase the standard factory from the construction's investor, but the subsidy for the light-steel standard factory shall be reduced by half. The factory shall not be leased or resold within five years, and the same project shall not be declared repeatedly. 

7. To implement the policies of the state and our province to exempt or lower administrative fees, and announce the list of administrative charges to the enterprises in the city. 

8. To give full play to the city's advantages as well as cut the cost of electricity, water, and gas used by enterprises; accelerate the reform of the electricity system and expand direct trading of  electricity; support the enterprises and parks undertaking the transfer of processing trade industries to participate in direct trading of electricity. To offer preferential incentives to the enterprises with large investment quota and strong leading role in electricity, water and gas consumption. Specifically, 0.1 yuan shall be rewarded by the county for each kilowatt-hour of electricity for the enterprises transferred to the city's economic development zone and parks in the first year since the start of their operation, with the reward applying only to the newly-increased electricity consumption in the second year.

9. The people's governments of various counties and districts shall help the enterprises transferred to our city recruit workers and guarantee the employment demand. All counties and districts shall coordinate the training funds of relevant departments and conduct free personnel training for the takeover of the enterprises. Besides, they shall support the workers transferred to the enterprises during production capacity reduction, and offer them employment subsidies in accordance with relevant policies. 

10. Employees of the enterprises transferred to the city, who meet the housing security conditions, shall enjoy the city's affordable housing policies. The spouses and children of senior technicians who have been introduced into the enterprises shall share the same treatment as the residents of the city if they pay the city's social insurance. Senior management talents introduced who meet the requirements can enjoy the preferential policies for talent introduction in our city.

11. Green channels shall be available for managers of the enterprises to go through immigration formalities. 

12. The setup of a "single window" for international trade and the integration of regional customs clearance shall be actively promoted so as to simplify the procedures for administrative examination, approval, and filing of import and export documents. A special agency for undertaking transfers of processing trade industries will be set up to provide "one-stop" and "housekeeper" services to the enterprises introduced, speed up the filing and registration procedures for foreign trade dealers, and implement a two-working-day completion system to further facilitate trade. 

13. The products of the enterprises settled in the city shall be listed in the policy procurement catalog, and priority shall be given to their procurement. 

14. With the city's geographical and industrial advantages, we will focus on undertaking new material industries and introduce equipment manufacturing, electronic information, home appliance manufacturing, fine chemicals, garment processing, and other industries. 

15. The enterprises introduced will be encouraged to participate in export credit insurance, where supplementary subsidies (30 percent) from the city are provided for their premiums in addition to subsidies (70 percent) from the province. 

16. The above-mentioned policies and measures shall be for reference for new non-processing trade projects in the key industrial chain determined by the counties and districts. Large-scale enterprises introduced to our city shall be dealt with on a "case-by-case" basis.