IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 19 May 2017 | Removal date: open ended
Still in force

FDI: Financial incentive

On the 19th of May 2017, the municipal arm of the Chinese government in Nanjing released an 'opinion', centring on the encouragement of foreign capital investment in the city. This stems from a January announcement by the State Council and subsequent Jiangsu provincial edict (see related measures).

The announcement confirms the availability of several subsidies for foreign firms wishing to set up shop in the city. The subsidies take various forms, as listed below:

  • 5m CNY (725k USD) 'start subsidy' for firms who establish a regional HQ in the city;
  • land prices for eligible firms guaranteed at 70% of designated national average for 5 years;
  • 'priority' (i.e. cheaper) electricity for 'major foreign projects';
  • between 10-100m CNY (1.45-14.5m USD) paid as a grant to technologically 'high-level' R&D projects;
  • a guarantee that intellectual property standards will be tightened to protect foreign IP.

The plan goes into effect from the date of its promulgation and will last indefinitely.

It is interesting to note that several concerns commonly held by foreign firms wishing to branch out into the Chinese market are specifically addressed, including the reduction of red tape and guaranteeing of rental agreements and direct access to the Chinese market, but also IP protection, as detailed above.

AFFECTED COUNTRIES

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