In order to support the cultivation of new growth drivers, to promote investment in modern industries and to boost high-quality development of real economy in Qingdao, some 236 items of policies have been enacted since 2017, including the 32-item Action Plan for Accelerating Investment in Targeted Modern Industries in Qingdao (QZZ [2017] No.51), the 25-item Policies and Measures for the Promotion of Investment in Targeted Modern Industries in Qingdao (QZCZ [2017] No.2), the 5-item Regulations on the Implementation of the Supportive Policies for the Development of Headquarters Economy in Qingdao (QZCZ [2018] No.4), the 20-item Opinions on the Cultivation of Market Players and on the Development of Private Economy (QF[2017] No. 14), the 16-item Circular on Policies for Promoting the Development of the Qingdao Wealth Management and Financial Reform Pilot Zone (QZBF[2018]No.18), the 75-item Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47), and the 55-item Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2), and the 8-item Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022)(QTZ[2019]No. 73, Annexes 4 and 5).
Below are the extracts of the relevant policies:
A. Policies for Industrial Development
1. Industrial cluster development. A subsidy in the amount of RMB 5 million and RMB 1 million will be given to a national-level and provincial-level demonstration project for new types of industries, respectively. Enterprises, industrial clusters, demonstration zones and parks on the “Top 10” list inShandong will be rewarded as per the relevant provincial and municipal policies.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
2.Establishment of new growth driver funds for key industries. A fund will be established for the transformation of growth drivers in Qingdao to support the development of “956” industries. According to the relevant regulations, the fund may be used for direct investment in key projects, and upon approval from the fund management committee, the income from the guidance fund may be rationally conceded to support the transformation of growth drivers or the investment in the start-up or early-or middle-stage development of technology or innovative enterprises in Qingdao.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47), Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
3. Integrated development of the internet and the manufacturing sector. A subsidy equivalent to 10% of the investment (maximum amount RMB 1 million) will be given to an “internet+” project such as one involving CAD application, integrated application of managerial information systems, information security upgrading for industrial control systems and industrial internet+ intelligent manufacturing. Pilot and demonstrative projects dedicated to integrated internet and manufacturing development in key industries will be rewarded. The reward for a newly-established internet industrial platform, an intelligent or interconnected plant, and a digitized workshop will be RMB 3 million, RMB 1 million and RMB 500,000, respectively. A subsidy up to RMB 2 million will be awarded to a model enterprise for intelligent manufacturing, once recognized by the provincial authorities.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
4. Development of the pharmaceutical industry. A reward of RMB 3 million will be given for a drug product that has passed national generic drug consistency evaluation and put into production. A reward of RMB 1 million will be given to a drug product that has been exempted from human bioequivalent (BE) test in the national generic drug consistency evaluation and put into production.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
5. Development of modern logistics. A subsidy of RMB 3000/TEU will be awarded to a logistics company engaged in China-Asia railway transportation; RMB 2000/TEU will be awarded to a logistics company engaged in China-Mongolia and China-ASEAN railway transportation; RMB 1000/TEU will be awarded to a logistics company engaged in China-Korea railway transportation. In addition, a subsidy of RMB 30,000-80,000/flight will be given to newly launched regular or irregular direct flight to an Asian country (region), RMB 500/ton to an air freight company for a newly launched mail business in the current year, RMB 600-800/ton to an air freight company for international (regional) mails conveyed to/from inland users through road transportation via Qingdao Airport, and RMB 2 million for a modern logistics
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project recognized by national-level authorities as in the scope of “intelligent warehousing” or “unmanned sorting”.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
6. Tourism development. A reward of RMB 10 million or RMB 1 million will be awarded to a scenic area that is rated as a 5A or 4A area. A reward of RMB 10 million, RMB 1 million and RMB 300,000 will be given to a newly star-rated 5-Star, 4-Star and 3-Star hotel, respectively. Newly-introduced large-scale tourism projects will be subsidized in preliminary planning and design as follows: 50% (maximum amount RMB 5 million) for a project costing RMB 1 billion or more. A tour company that is listed as one of China's Top 20 for the first time will be subsidized to the tune of RMB 1 million. Regular operation of cruise companies in Qingdao will be subsidized. For example, a subsidy of RMB 3 million will be given to a cruise company that operates 50 voyages or more in a year. A subsidy ranging from RMB 100,000 to RMB 500,000 per voyage will be given to a cruise company that takes Qingdao as a port of call, or a travel agency that organizes visits to Qingdao, depending on the number of tourists per call.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
7. Development of ocean fishery. A subsidy up to 50% of the newly added investment will be given to a comprehensive fishing port/economic zone, an integrated fishing port/ economic zone, a shore-based ocean fishing development zone, and an island-based ocean fishing development zone, subject to a maximum amount of RMB 40 million, RMB 6 million, RMB 10 million and RMB 20 million, respectively.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
8. Development of the conference and exhibition sector. A newly-introduced conference and exhibition enterprise will be subsidized for three years, starting from the second year of making its contribution to the local economy. The amount of subsidy will not exceed 50% of the contribution made in the previous year, and the maximum will be RMB 1 million. An exhibition company will be subsidized to the tune of RMB 1 million for holding an exhibition of a designated size as per the exhibition area; a taxpaying conference and exhibition enterprise in Qingdao will be subsidized to the tune of RMB 500,000 depending on the amount of its turnover.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
9. Development of the construction industry. A qualified construction enterprise registered in Qingdao that pays VAT exceeding RMB 5 million in a year will be subsidized to the tune of RMB 30 million according to the amount of VAT paid in the year. Renovation of public buildings for energy conservation purposes will be subsidized as per the renovated building area that meet the relevant energy conservation standards.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
10. Development of large-sized enterprises. A subsidy in the amount of RMB 10 million, RMB 3 million or RMB 1 million will be given to a manufacturing or service enterprise that is listed for the first time as a “World Top 500”, “China's Top 500” and “Shandong's Top 100”, respectively; a subsidy in the amount of RMB 2 million will be given to an enterprise that is listed for the first time in the “China Top 500 Private Enterprises”. A subsidy of RMB 2 million, RMB 1 million and RMB 500,000 will be given to the operator of a manufacturing or service enterprise if its main business revenue exceeds RMB 100 billion, RMB 50 billion and RMB 10 billion, respectively.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
B. Preferential Investment Policies
1. Introduction of foreign-funded projects. A new project (other than a project in real estate, finance and quasi-finance sectors) with yearly paid-in capital exceeding US$50 million, or a capital-increasing project with yearly paid-in capital exceeding US$30 million, or a headquarters or regional headquarters project of a transnational corporation with yearly paid-in capital exceeding US$10 million, will receive a reward equivalent to 2% of the yearly paid-in capital subject to a maximum of RMB 100 million; a new project with yearly paid-in capital below US$50 million, or a capital-increasing project with yearly paid-in capital below US$30 million, or a headquarters or regional headquarters project of a transnational corporation with yearly paid-in capital below US$10 million will receive a reward equivalent to 1% of the yearly paid-in capital.
——Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022) (QTZ[2019] No.73, Annexes 4 and 5).
2. Overseas listing of Qingdao-registered businesses. A lump-sum subsidy of RMB 5 million will be given to an enterprise that is listed in overseas stock market if US$ 10 million or more is brought back.
---- Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022) (QTZ[2019] No.73, Annex 5: Incentive Policy for Foreign Investment in Qingdao).
3. Profit reinvestment by foreign investors. An overseas investor reinvesting profits back into his project in Qingdao, if the yearly paid-in capital exceeds US$ 5 million, will receive a reward equivalent to 2% of the amount invested in the year, subject to a maximum of RMB 100 million.
---- Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022) (QTZ[2019] No. 73-Annex Clause 5:Incentive policy for foreign investment in Qingdao).
4. Introduction of World Top 500 and leading industrial enterprises. A new manufacturing (or capital-increasing) project invested by a World Top 500 (as per the list published by Fortune Magazine in the last 3 years) or a leading global industrial enterprise with yearly paid-in capital exceeding US$100 million, or advanced new manufacture project such as new-generation IT, intelligent equipment, bio-pharmaceutical, new energy and new materials with yearly paid-in capital not less than US$30 million will be subsidized on a “project-by-project” basis.
——Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022) (QTZ[2019] No.73, Annex 5: Incentive Policy for Foreign Investment in Qingdao).
5. Introduction of corporate headquarters. A subsidy of RMB 10 million will be given to a new company headquartered and registered in Qingdao with paid-in capital between US$100 million and US$1 billion; a subsidy of RMB 20 million will be given to one with paid-in capital between US$1 billion and US$2 billion; and a subsidy of RMB 40 million will be given to one with paid-in capital of US$2 billion or more. A reward of RMB 10 million, RMB 3 million, RMB 2 million, RMB 2 million and RMB 1 million will be given to a Qingdao-based company that is listed for the first time in the “World Top 500”, “China's Top 500”, “China's Top 100 Software Companies”, “Key Software Companies in the Nation Plan” and “Shandong's Top 100”, respectively. For a Qingdao-based company that has annual revenue exceeding RMB 50 billion, RMB 10 billion, RMB 5 billion and RMB 3 billion for the first time, the operator will receive a reward of RMB 1 million, RMB 500,000, RMB 300,000 and RMB 200,000, respectively.
A newly incorporated or introduced company, if headquartered in Qingdao, will receive a subsidy equal to 50% of its contribution to the local economy in the first year from the date of confirmation, and a subsidy equal to 25% of its contribution in the following two years, which subsidy will come from the municipal and district governments. Support will be provided for office and business premises by the local government where it is located, or a lump-sum subsidy up to RMB 5 million will be given for self-built, purchased or rented offices and business premises.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47), Regulations on the Implementation of the Supportive Policies for the Development of Headquarters Economy in Qingdao (QZCZ [2018] No.4) Policies and Measures for the Promotion of Investment in Targeted Modern Industries in Qingdao (QZCZ [2017] No.2)
6. Promotion of chain-investments. Subsidies in the amount of RMB 300,000, RMB 500,000 and RMB 1 million will be awarded to a headquarter enterprise that has introduced key supporting project exceeding RMB 100 million, RMB 500 million and RMB 1 billion respectively in the upstream/downstream of the industrial chain.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47), Regulations on the Implementation of the Supportive Policies for the Development of Headquarters Economy in Qingdao (QZCZ [2018] No.4) Policies and Measures for the Promotion of Investment in Targeted Modern Industries in Qingdao (QZCZ [2017] No.2)
7. Introduction of major projects in key industries. Under the principle of “one fund for one project”, special investment funds for key projects will be established to meet the funding requirements for projects. The funds will be established under the guidance of the district (city) governments, which will select the fund operators, using the government funds at municipal and district (city) levels, for new growth drivers, as well as funds from relevant enterprises and other sources. Upon approval from the municipal government, subsidies will be provided, on a “case-by-case” basis, to projects that cost over RMB 1 billion or projects in the key investment areas that cost less than RMB 1 billion.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
8. Introduction of modern financial institutions. A newly established or introduced financial corporation in Qingdao with paid-in capital of RMB 5 billion or more will receive a lump-sum subsidy of RMB 100 million, or RMB 80 million if its paid-in capital is RMB 4-5 billion, or RMB 60 million if its paid-in capital is RMB 3-4 billion, or RMB 40 million if its paid-in capital if RMB 2-3 billion, or RMB 20 million if its paid-in capital is RMB 1-2 billion,or 2% of the paid-in capital if the paid-in capital is below RMB 1 billion. Where an existing corporate financial institution increases its capital, a subsidy equivalent to 1% of the increased amount (net government investment) will be given, subject to a maximum amount of RMB 5 million. A newly established or introduced regionally administered financial institution that pays taxes on consolidated basis in Qingdao will receive a lump-sum subsidy up to RMB 2 million.
——Circular on Policies for Promoting the Development of the Qingdao Wealth Management and Financial Reform Pilot Zone (QZBF[2018]No.18)
C. Preferential tax policies
1. Tax relief policies. Preferential tax policies have been enacted since 2018. VAT rates are cut from 17% and 11% to 16% and 10%, respectively. The ceiling for annual taxable income for small VAT payers are adjusted to RMB 5 million, and the ceiling of the annual taxable income for small and micro enterprises that enjoy 50% reduction of corporate income tax is raised from RMB 500,000 to RMB 1 million.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
2. Reduction of urban land use tax. Effective from January 1, 2019, the urban land use tax rate is adjusted to 80% of the current urban land use tax rate. The criteria for urban land use tax for hi-tech enterprises will be levied as per 50% of the adjusted criteria, but not lower than the statutory criteria. The tax rate for use of urban land by logistics enterprises for staple commodities storage facilities is cut by 50% from May 1, 2018 to December 31, 2019.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
3. Reduction of stamp tax. Effective from October 1, 2018, the stamp tax rate on the purchase and sales accounts of industrial enterprises, retailing enterprises and foreign trade enterprises, on the freight income of freight transportation enterprises and on the warehousing income of warehousing enterprises, which pay stamp taxes subject to verification by the tax authorities, will be cut to 50%, 20%, 50%, 80% and 80%, respectively.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
4. Preferential tax policies for freight vehicles. Effective from January 1, 2019, freight vehicle and ship taxes will be collected at half of the existing rate. From July 1, 2018 to June 30 2021, vehicle purchase taxes for trailers are collected at half of the existing rate.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
5. Increase of pretax deduction. Policies for pretax deduction of employees education expenses are implemented, with the ratio of deduction raised from 2.5% to 8%; the policy of 75% mark-up deduction of R&D expenses is expanded to cover all enterprises from the original technology-based SMEs; the ceiling of the unit value of newly-purchased equipment and instruments for one-off pretax deduction in the current period is raised to RMB 5 million.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
6. Reduction of corporate income tax for technology-advanced service enterprises. Corporate income taxes are collected at a lowered rate of 15% from affirmed technology-advanced service enterprises (service trade type). —— Supportive Policies for High-Quality Development of Real Economy
(QZF [2019] No.2)
7. Reduction of infrastructure charges. Effective from October 1, 2018 to December 31, 2020, urban infrastructure charges are collected at 70% of the criteria, except construction projects for resident, commerce and services.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
8. Reduction of electricity cost. Companies in four sectors, namely coal, steel, non-ferrous metal and building materials are granted access to the power market, and users that consume more than 5 megawatt/hour per annum at 100 V level and above are encouraged to access the power market; projects in high value-added emerging sectors such as high-tech, internet, big data and high-end manufacturing, and projects listed as new growth drivers, are not
restricted by the voltage level and power consumption volume.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
D. Financial support policies
1. Increase of the ratio of direct financing by enterprises. A subsidy up to RMB 3 million will be given to a Qingdao enterprise looking to be listed on the domestic main board, SME board and GEM; a subsidy up to RMB 3 million will be given to an enterprise that has been listed overseas through IPO as in the case of being listed on the domestic main board; a subsidy up to RMB 3 million will be given to an enterprise that has been listed by purchasing a “shell” and changed the registered address of the listed company to Qingdao; a subsidy up to RMB 1.2 million will be given to an enterprise that has been listed through the NEEQ system, a national system for SMEs to transfer shares and raise funds; and a subsidy will be given to an enterprise that has realized direct financing through a regional stock exchange as per the amount so raised. —— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
2. Corporate financing through bond market. Financing through bond market by eligible enterprises will be subsidized to the tune of 0.2% of the actual amount, subject to a maximum of RMB 1 million per year. A financial institution that underwrites corporate bonds will be subsidized to the tune of RMB 500,000 for each deal if the amount of the deal reaches or exceeds RMB 30 million. A guarantee agency for the issuance of bonds will be subsidized to the tune of 0.01% of the amount issued, subject to a maximum of RMB 1 million for each deal. A risk mitigation service agency will be subsidized to the tune of 0.1% of the amount covered, subject to a maximum of RMB 1 million for each deal.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
3. Development of industrial-chain financing. Banks, financial leasing companies, guarantee companies and insurance companies are encouraged to provide financial services such as pledge of account receivables, pledge of equities, financial leasing, guarantee and insurance to the upstream and downstream micro, small and medium-sized enterprises. A subsidy up to 1% of the lease amount will be given to eligible financial leasing companies that provide financial leasing services to micro, small and medium-sized enterprises in Qingdao.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
4. Compensation mechanism for intellectual property pledge loans. Micro, small and medium-sized technology enterprises in Qingdao acquiring loans not exceeding RMB 5 million each using their intellectual property rights as collateral may be subsidized for three years, respectively to the tune of 80%, 60% and 40% of the insurance premium, subject to a maximum amount of RMB 80,000 per year. A loan interest subsidy equal to 50% of the annual interest is given to the lender, and the maximum amount of subsidy is raised from RMB 200,000 to RMB 500,000.
—— Opinions on the Implementation of the Supportive Financial Policies for 22
Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
5. Improvement of IPR-related financial services. Funds for commercialization of technology achievements, policy-based intellectual property operation funds and market-oriented IPR investment funds are set up by the financial funds of the central government and provincial and municipal governments together with social capital to support the commercialization of technological achievements and development of new types of IPR operation business, with focus on domestic large and medium-sized enterprises that have great capacity for independent IPR development.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
6. Further integration of science, technology and finance. First investment, first loan and first insurance support for enterprises in the “Qianfan Plan” is increased. An investment management institution that makes the first investment to an enterprise in the “Qianfan Plan” will be subsidized to the tune of 1% of the actual investment, subject to a maximum amount of RMB 200,000. An enterprise getting a new loan exceeding RMB 1 million from commercial banks will be subsidized to the tune of RMB 10,000.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
7.Agricultural credit guarantee. A policy-based agricultural credit guarantee system covering the entire city is established. An eligible business entity of an appropriate size dealing in grains may be subsidized by the municipal government to the tune of 1.8% of the credit guarantee fee, and an eligible agricultural business entity of an appropriate size may be subsidized to the tune of 2% of the credit guarantee fee.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
8. Credit assurance for micro, small and medium-sized enterprises. A subsidy up to 1.5% of the annual guaranteed amount may be given to eligible institutions providing financial guarantee up to RMB 10 million in each single deal for micro, small and medium-sized enterprises, with focus on guarantee for low-fee, small loans. A subsidy up to 0.5% of the annual re-guaranteed amount may be given to eligible institutions providing financial re-guarantee for micro, small and medium-sized enterprises. A subsidy up to 1% of the guaranteed amount (subject to a maximum amount of RMB 1 million per entity) may be given to institutions providing guarantee for collective bonds, collective notes, collective trust products and private placement bonds of micro, small and medium-sized enterprises. For state-owned institutions providing free counter-guarantee for the aforesaid notes and bonds, state-owned capital amounting to 1% of the yearly amount of the counter-guarantee will be injected (subject to a maximum amount of RMB 1 million per entity).
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
E. Policies for Lowering Production Costs
1. Reduction of land use costs for key projects. For a project in a strategic emerging industry for priority development, the land price for intensive development may be as low as 70% of the minimum floor price of similar local industrial land; where the proposed floor price is lower than the sum of the actual acquisition cost and land pre-development cost and relevant fees and charges, the floor price shall be set at a level that is not lower than the sum of the said costs and charges.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
2. Policy for factory expansion. No additional land assignment price is to be collected for the expansion of exiting plants through technical innovation or by raising the height of (adding stories to) old buildings on the land, provided that such expansion complies with the urban and rural plan, industrial development plan, and the purpose of the land is not changed.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
3. Policy for building staff apartments. Effective from October 1, 2018, key SMEs are permitted to build staff apartments (to be leased to staff) at a certain proportion on vacant land which they own. The proportion of the floor area of R&D centers and staff apartments on vacant land enterprises own may be raised to 15% of the total floor area.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
4. Flexible employment policies. Manufacturing enterprises are permitted to hire short-term seasonal workers in peak production seasons.
—— Policies and Measures for the Promotion of Investment in Targeted Modern Industries in Qingdao (QZCZ [2017] No.2)
F. Policies for Scientific and Technological Innovation
1. Scientific, technological and quality innovation. An organization playing a lead role in a research project that has been awarded by the State a first or
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second prize for natural science, technology invention and science and technology advancement will receive a lump-sum subsidy of RMB 5 million and RMB 1 million, respectively from the municipal government, on conditions that 70% of the reward be used for R&D and commercialization of research achievements and 30% goes to the person(s) (or research team) that has undertaken the project. An enterprise that is awarded a China Quality Prize, Shandong Governor Quality Prize or Qingdao Mayor Quality Prize will receive a reward of RMB 5 million, RMB 1 million and RMB 500,000, respectively, and an enterprise that is awarded a China Industrial Grand Prize will receive a reward of RMB 5 million.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
2. Construction of key scientific and technological innovation centers. Eligible science and technology innovation centers for biomedicine, smart home, high-speed train and civil-military integration projects will receive a subsidy up to RMB 30 million each, those which are recognized as national key laboratories or national engineering research centers will receive a subsidy of RMB 10 million each, and those which are recognized as national key pilot projects for digital economy will receive a subsidy of RMB 2 million each. —— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
3. Innovative development of the manufacturing industry. Enterprises undertaking national key pilot or demonstration projects in strategic industries, green manufacturing, and service-oriented manufacturing will receive a subsidy equivalent to 50% of the subsidy from the state, subject to a maximum amount of RMB 10 million. National-level manufacturing/industrial innovation centers that have been approved and registered as independent corporations will receive a subsidy equivalent to 25% of the actual investment each, subject to a maximum amount of RMB 10 million; provincial-level manufacturing/industrial innovation centers that have been approved and registered as independent corporations will receive a subsidy equivalent to 25% of the actual investment each, subject to a maximum amount of RMB 5 million; national-level enterprise technology centers and industrial design centers will receive a subsidy of RMB 5 million each; and provincial-level enterprise technology centers and industrial design centers will receive a subsidy of RMB 500,000 each.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
4. Technological transformation. The ratio of the subsidy for a manufacturing enterprise of a designated size that has completed technical innovation in line with a certain standard is raised from 8% to 16% of the equipment investment, while the maximum amount is increased from RMB 3 million to RMB 6 million, provided that the overall subsidy ratio is not more than 20% of the equipment investment. Each year, 10 key technical innovation projects at municipal level will be launched, and each of the projects will receive a subsidy up to RMB 20 million. The ratio of the subsidy for “special, fine, unique and new” technical innovations by a small or micro enterprise will be raised from 12% to 20%, while the amount of the subsidy will be increased from RMB 600,000 to RMB 1 million.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
5. Application of robots in enterprises. An enterprise that uses industrial robots will receive a subsidy equivalent to a certain percentage of the purchase price, subject to a maximum amount of RMB 2 million. An enterprise in dangerous sectors such as chemical and civil explosives that uses special robots for safety protection and explosive removal will receive a subsidy of up to RMB 5 million.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47), Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
6. Cultivation of scientific and technological enterprises. An enterprise that has passed hi-tech authentication for the first time will receive a reward of RMB 300,000; an enterprise that has passed hi-tech authentication for the second time will receive a reward of RMB 100,000. An enterprise that has passed hi-tech authentication in the incubator will receive a reward of RMB 100,000, subject to a maximum amount of RMB 1 million.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
7. Investment in R&D by enterprises. A high-growth enterprise, hi-tech enterprise or enterprise in the “Qianfan Plan” will receive a subsidy as per a certain percentage (5% for SME or micro enterprises and 3% for other enterprises) of the yearly pretax deduction of R&D expenses, subject to a maximum amount of RMB 1 million for each enterprise. In addition, an eligible high-growth enterprise, hi-tech enterprise or enterprise in the “Qianfan Plan” with annual revenue of RMB 200 million or above will receive a subsidy equivalent to 10% of the amount of the yearly pretax deduction of R&D expenses on top of the amount of the previous year, subject to a maximum amount of RMB 10 million for each enterprise.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
8. Support for first set of key technology equipment. Independent innovation and R&D of the first set of key technology equipment by equipment manufacturing enterprises is encouraged. The maximum subsidy for the first set of key technology equipment authenticated by provincial-level authorities is increased from RMB 1 million to RMB 1.5 million.
—— Opinions on the Implementation of the Supportive Financial Policies for 32
Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
9. Standardization. A subsidy of RMB 2 million and RMB 1 million will be awarded to a regional and national technology innovation centers, respectively; a subsidy of RMB 1 million will be awarded to a national-level standardization and application platform, and a subsidy of RMB 500,000 will be awarded to the key formulator of a key national standard for advanced agriculture or a national standard that has significant innovative and guiding effects.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
G. Policies for Introduction of Talents
1. Introduction of top talents and leading talents. A top talent introduced on full-time basis or a self-trained top talent will receive a resettlement allowance of RMB 5 million; a top talent introduced on flexible basis will receive a reward equivalent to 30% of the total remuneration taxed in Qingdao in the
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previous year for three consecutive years without a ceiling. A team-project led by top talents or leading talents which has significant influence on scientific and technological innovation and industrial development in Qingdao will, upon authentication, receive a comprehensive subsidy ranging from RMB 10 million to RMB 100 million.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
2. Cultivation of future scholars and experts. A prospective academician or expert in the “Thousand Talents Program”, “Ten-Thousand Talents Program” or “Mount Tai Scholar Program” will receive a yearly subsidy up to RMB 500,000, RMB 200,000 and RMB 100,000, respectively for two years; efforts will be made to retain post-doctors trained in Qingdao; research fellows with a postdoctoral degree working in postdoctoral workstations in Qingdao will receive a living and housing allowance in the amount of RMB 120,000 for two years, and those who choose to work in Qingdao after finishing their postdoctoral research will receive a housing allowance in the amount of RMB 250,000.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
3. Introduction of foreign talents. The main employer of newly introduced (full-time) or trained high-level talents who are subsequently been listed as national experts in the “Thousand Talents Program”, “Ten-Thousand Talents Program” or “Mount Tai Scholar Program” will receive a subsidy of RMB 300,000, RMB 200,000 and RMB 100,000 for each talent, respectively. An institution or individual that has introduced a full-time top scholar or expert in the “Thousand Talents Program”, “Ten-Thousand Talents Program” or “Mount Tai Scholar Program” will receive a subsidy in the amount of RMB 500,000, RMB 300,000 and RMB 100,000, respectively. Any one who has introduced an R&D team or hi-tech project led by expert(s) with aforesaid title(s) will received a reward twice the aforesaid amount.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
4. Housing allowance for new graduates. A graduate with a doctoral or master degree who choose to work in Qingdao will receive a housing allowance in the mount of RMB 150,000 and RMB 100,000, respectively, when he buys the first house. An ordinary college graduate who is employed in Qingdao and has obtained a full-time postgraduate or undergraduate diploma or a doctoral, master or bachelor's degree, will receive a housing allowance in the amount of RMB 1200/month, RMB 800/month, and RMB 500/month respectively for a maximum of 36 months; a graduate with a doctoral or master degree that is listed in the urgently demanded category will receive a housing allowance in the amount of RMB 1500/month and RMB 1200/month respectively for a maximum of 36 months.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
5. Establishment of platforms to attract first-class talents. Some 20 industrial platforms of provincial-level and above will be built focusing on “956” industries in Qingdao to attract talents. The development of Qingdao International Academicians Park and the Qingdao Academicians and Experts Innovation Park will be supported to build platforms for top talents.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
6. Establishment of offshore innovation and start-up centers for overseas talents. Setting up overseas R&D centers, laboratories and industrial bases by enterprises, universities and research institutions in Qingdao is encouraged in order to expand the global market and acquire innovation resources. Employment of foreigner talents for innovation and business start-up by various offshore centers is encouraged and a reward of RMB 4 million, RMB 3 million or RMB 1 million will be offered according to the actual conditions. —— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
7. Management of work permits for urgently-needed foreign experts. Services such as acquisition of work permits will be provided for foreign experts who are urgently needed by enterprises in Qingdao. Documentation and approval process will be simplified. A high-level foreign talent may have his work permit extended for three years or longer, and a foreign professional may have his work permit extended for two years or longer.
—— Supportive Policies for High-Quality Development of Real Economy (QZF [2019] No.2)
8. Rewards and subsidies for financial talents. An incentive mechanism for financial professionals will be established to improve the overall quality of financial professionals. A reward up to RMB 200,000 will be offered to an individual who is listed as a high-level financial professional in Qingdao; and a reward of a certain amount will be offered to an individual who is named “Financial Star" in Qingdao.
—— Opinions on the Implementation of the Supportive Financial Policies for Key Projects for the Cultivation of New Growth Drivers (QBF [2018] No.47)
H.Incentive Policies for Investment Introducers
1. Introduction of foreign-funded projects. The introducer of a new foreign-funded project with a contract price of US$ 10 million or above, if the amount of yearly paid-in capital is between US$5 million (inclusive) and US$ 30 million (exclusive), will receive a reward equivalent to 0.7% of the paid-in capital; if the amount of yearly paid-in capital is between US$30 million (inclusive) and US$100 million (exclusive), the introducer will receive a reward equivalent to 0.8% of the paid-in capital; if the amount of yearly pain-in capital is above US$100 million, the introducer will receive a reward equivalent to 1% of the paid-in capital, subject to a maximum of RMB 20 million. The introducer of a project invested by an overseas Fortune 500 will be doubly rewarded.
——Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022) (QTZ[2019] No.73, Annex 4: Incentive Policies for Socialized Investment Promotion in Qingdao).
2. Introduction of Chinese-funded projects. (1) Criteria: Where the total investment of a project is RMB 100 million or above and annual investment in fixed assets is RMB 50 million or above, the introducer will receive a reward equivalent to 0.6% of the investment in fixed assets; where no investment in fixed assets is made but the yearly paid-in capital for the project reaches RMB 50 million or above (in the case of a financial project without registered capital, yearly paid-in capital is RMB 100 million or above), the introducer will receive a reward equivalent to 0.1% of the paid-in capital. The introducer of a project invested by a domestic Fortune 500 will be rewarded as per 1.5 times of the reward rate. (2) Reward ceilings: RMB 1 million for a project with total investment between RMB 100 million (inclusive) and RMB 1 billion (exclusive); RMB 2 million for a project with total investment between RMB 1 billion (inclusive) and RMB 3 billion (exclusive); RMB 3 million for a project with total investment between RMB 3 billion (inclusive) and RMB 5 billion (exclusive); RMB 5 million for a project with total investment of 5 billion or above.
——Circular on the Release of the Action Plan for Investment and Talent Introduction in Qingdao (2019-2022) (QTZ[2019] No.73, Annex 4: Incentive Policies for Socialized Investment Promotion in Qingdao).
