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Decisions of the Government

  Decisions of Jiangxi Provincial People's Government over Further Optimizing

           the Soft Environment of Foreign Investment and Business Operation

   (August 20, 2001)

      In order to enlarge the opening to the outside world and facilitate the introduction of foreign investment, the government hereby put forward the following suggestions over further optimizing the soft environment of foreign investment and business operations, according to the overall requirements prescribed by CCP Jiangxi Provincial Committee for emancipating the mind and accelerating the economic development.  

  1.  Annul the policies, rules and regulations inappropriate to the present new situation. The Legal Affairs Office of the Provincial Government would take the lead in sorting out the rules and regulations concerned, and General Office of the Provincial Government in sorting out the official documents issued by Jiangxi Provincial People's Government. The Provincial Foreign Economic and Trade Department has the responsibility to compile the foreign-related policies, rules and regulations which have already been sorted out into books before 2002, and provide them to the investors for free. Any new policies, rules and regulations from the State or Provincial Government must be publicized to foreign-invested enterprises through the relevant channels and Internet.

  2.  The Provincial Government must stop, from August, 2001, any examination or approval of the items concerning the foreign-related charges. It¨s required that prior to the end of September, 2001, the financial and pricing authorities of the province must check up, according to law, all the items concerning the foreign-related administrative charges across the province and annul the unreasonable ones. Then the catalogue of uniform foreign-related administrative charges must be worked out and publicized through media. Besides, the financial and pricing authorities of the province must implement the system of charging license, collector license, charging registration and supervision card throughout the province before 2002. According to which, it is required that the uniform receipt from the financial authority of the province specially for the foreign-related administrative charges be issued, and the system of governmental charging authority to be strictly separated from the  receiver executed.

  3.   Further remove the restrictions on investment, encourage and attract more foreign or offshore investors to participate in the capital construction, such as expressways, national or provincial highways, electric network update and also the construction or business operation of urban public facilities and scenic resorts just in the forms of exclusive investment, joint investment and cooperative business operation. Encourage foreign businessmen to participate in the logistics industry and the construction of public welfare establishments, including the educational, cultural, hygienic, sports and social welfare undertakings; encourage and assist the foreign businessmen to graft and transform the state-owned enterprises in different ways of purchase, merge, combination and reorganization; encourage the foreign businessmen to participate in the farm production, fish breeding and poultry raising, and processing of farm and sideline products; encourage the foreign businessmen to cooperate with Chinese partners and take the form of corporate organization of non-judicial person to explore the mineral resources in short supply and to exchange miner's right for prospector's right.

      4.   The offshore and foreign enterprises or individuals who invest in Jiangxi are permitted to subscribe the capital in RMB with the profits from enterprises invested by them in China or with the funds financed by them. They are permitted to register with reference to the standard for foreign-invested enterprises; the foreign-invested enterprises that have already invested in Jiangxi are permitted to register as domestic-funded enterprises.

  5.   The land to the foreign-invested enterprises by non-administrative allotment will be exempted, during the construction period set in the project design, from rental or assignment fee. The farmland for the invitation of businessmen to set up companies in the counties (or districts) and cities will be exempted from farmland reclamation fee, provided that an additional farmland has been supplemented and it proves to maintain a balance between the occupied and supplemented farmland upon examination.

      6.   The foreign-invested enterprises within the boundary of Jiangxi province, which are included in the category of establishments encouraged by the State, will pay, subject to the approval, the enterprise's income tax only at a tax rate of 15% within 3 years after the expiration of current preferential treatment policies specially for enterprise's income tax.

  Simplifying the office procedures, improving the working efficiency and constructing an open, fair, honest and highly efficient administrative environment

  7.   Every foreign-related governmental department must formulate the "Office Guidelines" prior to the end of 2001, indicating the major duties, office procedures, materials required, proceeding time-limit, charging standard, persons in responsible position, phone call for contact and other necessary contents, and publicize them at the office for the investors' inquiries.

  8.   The power of examination and approval over the project application and feasibility study report of capital construction and technical update with foreign investment will be delegated wholly to the municipality-level, provided that they are within the limits of authority at provincial level for examination and approval and in conformity with the state or provincial industrial policies, but no need of balance funds and construction conditions from the province. The examination and approval over the project application and feasibility study report will be combined into a single process, instead of the double process, and the experiments over the change of examination and approval system into registration system will be conducted promptly at selected points.

  9.   The power of examination and approval over the project application, contract and articles of association will be delegated to the municipality-level, provided that the foreign investment in the project is no more than USD30 million, and the Approval Certificate to foreign-invested enterprise will be filed on record subsequent to the process of examination and approval, instead of prior to the examination and approval.

  10.  The pretax deductions related to the income tax of foreign-invested enterprise will be wholly placed under the control of local national taxation admini-strative authority. The power of national taxation bureaus of municipality-level to examine and approve the pretax deductions regarding the loss on business property will be relaxed to an extent of RMB 2 million yuan from the original RMB 500,000 yuan. The power to control the tax reimbursement for export will be delegated to national taxation bureaus of the municipality-level, provided that the tax reimbursement for export is no more than RMB 1 million yuan to the foreign-invested enterprise.

11.  The investing shareholders may apply for the pre-approval for registering the name of foreign-invested enterprise directly in the administration of industry and commerce before the project application has been approved. The investors who come to Jiangxi and to establish the foreign-invested enterprises with the different forms of capital contribution will be issued the business license for a stand-by period of six months, provided that they do not satisfy the prerequisites for registration within a definite period of time as prescribed, but the business license is urgently needed to make preparations. The formal business license will be issued until the preparations are completed.

  12.   Every municipality must make further improvement on the working efficiency for investment projects' examination and approval, and insist on the "Once-and-for-all" working system. Any investment projects which require to be examined and approved must be dealt with and completed all together at one counter without extra links.

  13.   In the event that the examination and approval authority directly subordinate to the provincial government has not executed the joint examination system, the examination and approval over the application for the project with foreign investment must be completed within 3 working days on the premise that the project conforms with the relevant stipulations and conditions; the examination and approval over the contract and articles of association concerned must be completed within 3 working days; and the registration in the administration of industry and commerce must also be completed within 3 working days.

  14.  In the examination and approval authority directly subordinate to the provincial government, which has not executed the joint examination system, the first receiver's responsibility system must be implemented. If the procedures of examination and approval involve the duties of other offices in the same department, the first receiver office must be responsible to deal with the procedures concerned just in a manner of integral coordination and complete the examination and approval only with one official stamp. After the staff of examination and approval authority receives an application and affirms that it is within the scope of official duties in his section, he must be responsible for all the processes of receiving, handling and completing, in which the handler must supply, only in a single time, the catalogue of all necessary materials and official documents for reference use in the process of examination and approval, state explicitly the amendments and requirements to the materials for the use in application and take responsibility for completing all procedures in the examination and approval.

  15.  Strengthen the electronic information management at the port, accelerate the construction of electronic port, and put into use the electronic on-line clearance and inspection as soon as possible. To the customs, inspection and quarantine authorities, it is required to exercise the on-duty system on holidays, and to further simplify and speed up the clearance procedures.

  Strengthening the supervisory and restrictive system and constructing the market environment of uniformly opening and fair competition

  16.   To set up in the governmental departments the system for democratic appraisal of common practice. The supervisory, pricing and legal authorities must organize the foreign-invested enterprises to make an annual appraisal over the working efficiency, service quality, law enforcement, policy implementation and materialization of law enforcement units and administrative departments. Those who fail to pass such a democratic appraisal will be publicized across the province and consolidated within a specified time, and it will be taken as the evidence for reference during the check on the chief's performance in a department or unit. Each municipality must set up its own system for democratic appraisal of common practice.

      17.   Municipalities, counties (or districts) acrossed the province must set up the coordination agency for the tip-offs related to foreign investment and form a network together with the complaints center at the provincial level on a mutual support basis so as to serve as a quick-response channel for the complaints from foreign businessmen. Also it is required to prepare the complaints' handling and supervising system and formulate as soon as possible the Handling Methods of Complaints from Foreign Businessmen in Jiangxi Province. With reference to the advice from complaints agencies of different levels for the handling of complaints, every administrative authority of the province must execute according to the advice within a specified time, and if refusing to execute, the relevant staffs and leaders must be held responsible subject to the investigation by governmental supervisory department.

  18.  The governmental departments concerned must conduct the annual proficiency examination and check strictly pertinent to the relevant laws, rules and regulations, and the examination or check must not aim to collect fees. The same department must not carry out the frequent examinations in enterprises or repeat the examination on a similar issue in the current year.

  19.   All the government departments, including the quality and technical supervision, administration of industry and commerce, public security, national taxation, customs, inspection and quarantine, must take stronger measures against those illegal conducts, such as production, transport and sales of sham and shoddy products, infringement on intellectual property in enterprise, smuggling, obtaining foreign exchange or tax reimbursement by fraud, and crack down on them in a systematic way so as to maintain an open, fair and honest market order. The foreign-invested enterprises have the right to independently select their intermediary service agencies of certified public accountants, solicitors, public notary, evaluation, authentication, consultation and human resources, etc., and every governmental department must not compel the foreign-invested enterprises to accept the intermediary service designated by them.

  Updating the ideas, renewing the conception and constructing a freindly environment agreeable for businessmen, carefree to businessmen and good to businessmen's fortune-making

  20.  To rectify and optimize the soft environment of investment and business operation must be taken as the first-in-command program in the governmental departments across the province, and according to which the chiefs from governmental departments across the province must be the first in command in the process of constructing the first-rate environment. It's required to devote great efforts to environmental rectification and optimization in the areas under their jurisdiction only to the uniform requirements of the plan in the province, and steadily improve the working and living conditions of outside investors.

  21.   In the process of investment introduction, it is also required to establish the project's follow-up responsibility system and practise the project's leadership responsibility system. The governments and governmental departments at all levels must conduct the overall follow-up service for the projects of investment introduction in the areas under their jurisdiction throughout the processes of negotiating, signing agreement, submitting application, putting into operation or production and commencement of business operation as well. In addition, they must pay a visit at regular intervals to have a better understanding of the investors' suggestions or complaints about the environment of investment and assist the foreign businessmen to overcome and solve the difficulties arising in connection with project's implementation, attempting to ensure the successful and smooth running of present foreign-invested enterprises and attain the goal of attracting more businessmen to invest here in the province.

  22.   To set up the system of motivation and devote major efforts to the introduction of talents. It's required to construct the returned students' pioneering garden and universities' scientific and technical garden to the public satisfaction; to establish the pioneering funds specially for the sophisticated talents who are engaged in the hi-tech or frontier technical fields and attract more domestic or foreign talents to serve in Jiangxi; to encourage the equity participation in the form of patent, invention or expertise and engagement into technical develop-ment; offer the introduced talents as much preferential treatment as possible in the aspects of household register, housing, remuneration and migration of dependents; strengthen the vocational technical training and exercise the policy of laying equal stress on diploma and professional eligibility certificate in the society so as to ensure the supply of more qualified staff and workers to foreign-invested enterprises.

  23.   The public security organs at all levels must establish a close and systematic point-to-point contact with the foreign-invested enterprises, and to serve the investment introduction and improve the soft environment for investment, they must attach utmost importance to the protection of foreign businessmen¨s personal and property safety. Also, they must adopt sound measures to maintain the public order and strengthen the safety control in the places where foreign-invested enterprises are located and foreign businessmen are living.

  24.   The governments and relevant governmental departments at all levels must resolve the disputes arising on the foreign-invested enterprises properly and without delay, which are in connection with the takeover of land, relocation of residents, employment, use of water, development and utilization of resources and environmental protection, and they must assist initiatively the foreign-invested enterprises to settle the labor disputes and other internal conflicts of various kinds inside enterprises. In case of emergency calls from foreign businessmen or foreign-invested enterprises, the public security organs at all levels must give first priority to investigation, designate someone to supervise the case specially, feedback the information in time and help exclude the difficulty and anxiety of foreign businessmen.

      25.   To cancel the stipulations concerning the accommodation of non-resident aliens only at the designated location. The system of filing on record other than the system of examination and approval will be adopted to administer the overnight accommodation of those non-resident aliens who come to Jiangxi for traveling, investigation tour and investment, and as a result, the non-resident aliens can choose the hotel themselves. 26.     The foreign (or offshore) investors with a large amount of investment in Jiangxi and their managerial staffs will be granted the multiple entry visa and temporary resident permit valid for 2 to 5 years. The application for settlement submitted by the Taiwanese resident and his/her spouse or children will be approved if his/her investment exceeds a definite amount in Jiangxi. The foreign (or offshore) technical personnel, managerial staff and investors who intend to apply for permanent residence in Jiangxi will be granted the residence permit valid for 1 to 5 years and multiple entry visa of the same validity period. The foreign experts who have made outstanding contributions will be granted the permanent residence permit. The hi-tech and management talents who have acquired foreign nationality upon completion of their academic studies at abroad will be approved to acquire the permanent residence permit subject to their application for settlement.

  The above decisions will come into effect from the day of issuance, and shall prevail any previously issued inconsistent stipulations.