（英文版）关于“1+4”招商引资政策体系的说明

Introduction to the "1+4" Investment Policy System

1. Policy Background

In recent years, Qianjiang has successively introduced a series of policies to attract and promote investment, which have a positive effect on the city's investment promotion. However, there remain outstanding issues such as loose generalizations, incomplete system designs, insufficient incentives, and lack of compliance requirements.

A number of regions countrywide have introduced relevant policies to support their economic development to attract investment. For example, Guangzhou, Hangzhou, Shanghai and other relatively more economically-developed regions have introduced a "1+N" model for their investment attraction policy systems, which stands for one framework document plus multiple special industrial policies. While being designed to provide fast query services for enterprises, the system can also better utilize policies to support the development of enterprises, strengthen and expand existing competitive enterprises, and form industrial agglomeration. At present, cities in Hubei Province such as Jingmen and Jingzhou have followed suit and successively introduced similar "1+N" policies to support industry development.

Earlier, the municipal leaders of Qianjiang have put forward new requirements for the city's investment promotion policy, that is, "to introduce a "1+4" industrial policy for the '4+1' industrial system. In concrete terms, Qianjiang will formulate an inclusive policy supported by four specialized policies to guide enterprises to settle down in Qianjiang and build industrial clusters in a targeted way."

2. Formulation Process

When formulating the "1+4" investment promotion policy, the principal leaders of the city attached great importance to the progress and implementation. The municipal leaders in charge of the formulation participated throughout the process to make sure the accuracy and practicality of various policy provisions. On August 13, the city's main leaders were debriefed by the Qianjiang Municipal Investment Promotion Service Center on the five aspects of policy formulation, which include professional human resources, investment promotion measures, evaluation mechanism, key industries and platform construction in the 2021 Fourth Investment Promotion Project Scheduling Meeting, and further suggested the requirements of scientific and standard formulation, management and implementation of the investment promotion policy. On August 19, the main leaders of the city deliberated on the development of the textile and garment industry and researched on developing relevant policies.

3. Leading Principles

(1) Resource integration and industry-specific mechanisms. This revision to the existing policy is completed through joint efforts across multiple government departments, which consist of professional industry experts. For example, the Qianjiang Municipal Investment Promotion Service Center is responsible for formulating the preferential policies for industrial investment attraction and industry-specific policies for the optoelectronic information industry; the Qianjiang Municipal Economic and Information Technology Bureau is responsible for formulating policies for the textile service industry; the Qianjiang Municipal Investment Promotion Service Center and the League Municipal Committee are jointly responsible for formulating policies for the home manufacturing industry; and the Qianjiang Municipal Agriculture and Rural Affairs Bureau is responsible for the agricultural industry policy.

(2) Systematic and results-oriented rules. The preferential policies for investment attraction are managed in a centralized manner and are supported by supplementary industrial policies, reflecting the systematic and cooperative nature of the policy formulation. The preferential policies for investment promotion are designed based on the seven aspects of investment intensity, tax amount, scientific and technological content, chain size, environmental level, energy consumption limit, and safety margin, and policy support is given to industrial projects, large projects and good projects with take a clear-cut stand. The rules are designed to further increase the cost of land for general projects and promote intensive land use and land conservation. Flexible investment promotion policies have also been created, which offer the flexibility to provide incentives and rewards based on project quality. Additionally, special policies are designed to help achieve customized support for industrial development in different sub-segments.

(3) Practical and scientific support. The policy revision follows the current laws and regulations, and the opinions of relevant local government institutions, departments and enterprises are considered when formulating specific provisions. The amount of incentives is also accurately calculated with the source of fund being transparent and clear. Specifically, in order to make sure that the revised policy is a consistent continuation based on the existing one, advanced practices and experience from both inside and outside the province are referenced. and corresponding policies for talents, logistics, packaging and charging are retained and appropriately adjusted to ensure that the policies are both preferential and practical.

(4). Explicit terms and conditions for mutual benefits. The terms and conditions to enjoy the policy benefits are clearly stated in the document, including the necessary conditions such as time limit, planning and scheduling, tax amount and investment intensity. The enterprise must reach the production and efficiency within the time limit specified in the contract to enjoy the policy benefits, and the potential risks are mitigated to a maximum extent. The qualified enterprises do not need to apply to enjoy the benefits. The rewards and incentives are automatically granted to avoid any outstanding issues. At the same time, for those who fail to build and put into production according to the agreement or fail to meet the preconditions, the government reserves the right of recourse, which not only provides convenient and efficient investment services for enterprises, but also protects the interests of local development.

4. Main Content

(1) "20 Measures for Investment Promotion": The policy has a total of 20 core articles, and compared with the previous version of the policy, 6 articles are retained, 8 articles are modified, and 6 articles are added.

1. Retained articles. Some clauses that are still in line with the provincial government requirements on investment promotion and implemented efficiently with superior policy advantages are retained in this revision, such as Article 1 Project Land Guarantee, Article 3 New Local Financial Contribution Award, Article 9 Industrial Cluster Development Award, Article 11 Talent Work Reward, Article 14 Logistics Cost Subsidy, Article 16 Industrial Fund Support, etc.

2. Revised articles. For Article 2, the new investment incentive was adjusted from 70% of the reserve price of the land transfer to a maximum of 40%. The final land price was adjusted from RMB 32,200 to a minimum of RMB 60,000. For Article 4, foreign investment incentive was adjusted from step-wise rewards to linear rewards of RMB 100,000 for every additional USD 1 million, which made the article more practical. For Article 5, on the basis of rewarding 3% of the M&A funds, an additional reward equal to the amount of tax share generated by the transfer on the municipal level shall be given, and an additional reward of the same amount of new city-level tax shares generated by production and operation within three years will be granted, so as to raise Qianjiang's competitiveness in terms of the policies among neighboring cities and prefectures. For Article 10, the reward for introduction of new enterprises shall continue to follow the previous standard of 1-3‰, with a maximum amount of RMB 3 million. In order to encourage intermediaries to attract investment, incentives are given in two phases. For the first phase, a rewarded of RMB 30,000 is granted after signing a formal investment contract, and for the second phase, another reward will be given subject to actual verification after the project is put into production. At the same time, the measures for rewarding public officials for meritorious service are also clarified. For Article 12, the subsidy for investment in production equipment was adjusted from 6%, 8%, and 10% of the total equipment investment to a more flexible range of 3% to 10%, with the total amount of subsidy being raised to RMB 15 million. The subsidy standard is reviewed and approved by the Qianjiang Municipal Investment Promotion Committee, which flexibly supports the development of different projects. For Article 13, the subsidy for leasing or purchasing factory buildings was adjusted from a 50% rent subsidy to a full subsidy or a partial subsidy under the agreed tax conditions, and the subsidy methods will be more flexible and diverse. For Article 19, enterprises are further encouraged to expand their business scale and recruit more talents. The threshold for discussing each case on a case-by-case basis was further raised, and the fixed investment of RMB 400 million or RMB 200,000 of flat tax per mu" was adjusted to fixed investment of RMB 500 million or RMB 300,000 of flat tax revenue per mu." It has also been made clear that subsidies for existing enterprises which reach a scale of RMB 200 million can now be discussed on a case-by-case basis. For Article 20 Project Service Optimization, the clauses are further refined in terms of "nine availables and one access," administrative packaged charges, and project agency, and requirements for the implementation of policy fulfillment and enterprises' right to recourse for breach of contract were added.

3. Newly added articles. Article 6 added that a one-time reward of RMB 50,000-500,000 will be given respectively for increasing production and efficiency that exceeds RMB 0.5-1 billion for the first time according to the annual sales revenue. Article 7 added that incentives for enterprises going public shall be rewarded in stages with reference to the Notice on Issuing the Interim Measures for Encouraging Small and Medium-sized Enterprises to Reform and Go Public (Listing) (Q.Z.F. [2017] No. 16). Article 8 added incentives for saving and intensive land use shall be rewarded. For newly built multi-storey factories with a plot ratio of 1.0 or more, a reward will be given for the second floor of RMB 100 yuan/m2, and for the third floor and above, the reward will be given as per a standard of RMB 200 yuan/m2. Article 15 added a one-time freight subsidy of up to RMB 5 million for enterprises for relocating to Qianjiang at a rate of 2% of the assessed value of the relocation equipment. Article 17 added financial service support for major projects at a 50% discount at the market quotation rate for loans in the same period, with a maximum of RMB 500,000 per year for three consecutive years. Article 18 added support incentives for exhibition economy and e-commerce, and qualified enterprises will be subsidized respectively according to the invested cost and type of activities. Specifically, a one-time reward of RMB 50,000-300,000 will be given respectively to the enterprise with an annual sales revenue exceeding RMB 10-100 million for the first time.