Hechi launches supportive policies to promote investment in key industries

Hechi in South China's Guangxi Zhuang autonomous region launched a series of supportive policies on Jan 31, 2019, which will be effective until Dec 31, 2024.

These supportive policies are aimed at promoting the development of processing trade, big health tourism, agricultural products processing, and strategic emerging industries in Hechi, as well as to advance the transformation and upgrading of the city's traditional industries.

Supportive policies in land use

For projects that settle in Daren Industrial Park, as well as have an investment of over 2.2 million yuan ($315,848) per mu (0.07 hectares) and a tax payment of no less than 150,000 yuan per mu after the projects is completed, a subsidy of 5,000 yuan per mu will be granted according to the projects' actual land use area. The maximum subsidy for each project shall not exceed 500,000 yuan.

For land used by agricultural products processing projects in Hechi, 70 percent of the lowest price for local industrial land shall be applied.

For land used by agricultural products storage, logistics, and wholesale market projects, 70 percent of the land value under market conditions will be applied. The applied land price shall not be lower than the national lowest price for the same kind of land transfer.

Fiscal support policies

For projects whose fixed-asset investment (land purchases excluded) is between 100 million and 500 million yuan, a one-time subsidy that is equal to 0.5 percent of their fixed-asset investment will be given. Projects with a fixed-asset investment of more than 500 million to 1 billion yuan will receive a one-time subsidy that is equal to 0.75 percent of their fixed-asset investment. Projects with a fixed-asset investment of more than 1 billion will receive a one-subsidy that is equal to 1 percent of their fixed-asset investment. The subsidy amount for each project shall be limited to 12 million yuan.

For projects that are involved in the deep processing, storage logistics, and wholesale market of agricultural products and have a fixed-asset investment (land purchases excluded) of 50 million to 200 million yuan, a one-time subsidy that is equal to 0.5 percent of their fixed-asset investment will be given. Projects with a fixed-asset investment of more than 200 million to 500 million yuan will receive a one-time subsidy that is equal to 0.75 percent of their fixed-asset investments. Projects with a fixed-asset investment of over 500 million yuan will receive a one-time subsidy that is equal to 1 percent of their fixed-asset investments. The maximum subsidy for each project shall be up to 7.5 million yuan.

Projects by big health tourism enterprises (tourism real estate projects excluded) which are registered in Hechi, as well as have a registered capital of over 20 million yuan and a fixed-asset investment of 200 million to 500 million yuan (land purchases excluded) will be given a one-time subsidy that is equal to 0.25 percent of their fixed-asset investment. Projects with a fixed-asset investment of more than 500 million yuan to 1 billion yuan will receive a one-time subsidy that is equal to 0.5 percent of their fixed-asset investment. Projects with a fixed-asset investment of over 1 billion yuan will receive a one-time subsidy that is equal to 0.75 percent of their fixed-asset investment. The total subsidy for one project shall not exceed 10 million yuan.

For enterprises that build high-end business and resort-oriented five-star hotels in Hechi, a subsidy that is 5 percent of enterprises' fixed-asset investment will be given. The subsidy amount for each enterprise shall be limited to 10 million yuan.

Enterprises that are involved in the processing trade or the electronic science and technology industries that lease standard workshops can receive a subsidy of 30 percent of their annual rent for no more than two years. The monthly subsidy shall not exceed 5 yuan per square meter.

Enterprises that pay taxes of more than 10 million yuan in Hechi can get a grant that is equal to 30 percent of the city's retained portion of their paid taxes for no more than two years.

A one-time reward of 1 million yuan or 500,000 yuan will be respectively given to traditional Chinese medicine parks that are developed into a five-star or four-star rural tourism area.

Financial support policies

Newly introduced key projects can be given the first batch of loans (less than 30 million yuan) by the financial institutions in Hechi with a discount of up to 15 percent on the benchmark interest rate.

Hechi supports the newly introduced key enterprises to cooperate with government financing guarantee institutions to carry out financing and loan guarantee businesses.

Talent support policies

Senior executives (above the level of deputy general manager) and senior technicians (above the level of deputy senior engineer) hired by newly established enterprises in Hechi can receive a grant that is equal to the city's retained portion of their paid individual income taxes.

Enterprises that employ impoverished people in Hechi can be given rewards in training, employment, and social insurance according to relevant policies.

Others

Manufacturing, research and development, as well as regional headquarters projects invested by Fortune Global 500 enterprises, China's top 500 enterprises, and China's top 500 private companies, which have enjoyed other specific support policies, are no longer applicable to these supportive policies.

This English version is only for reference. To learn more, please refer to the authoritative Chinese version on the official website of the Hechi investment promotion bureau.