ANNOUNCEMENT 01 Dec 2018

December 1st, 2018 - The provincial government in Henan Province announced a subsidy mechanism for foreign investments.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

PRC National Development and Reform Commission, December 1st, 2018. (豫政(2018)36号公布 河南省人民政府关于积极有效利用外资推动经济高质量发展的通知)
http://wzs.ndrc.gov.cn/wstz/wstzgk/201812/t20181228_923955.html

Inception date: 01 Dec 2018 | Removal date: open ended
Still in force

FDI: Financial incentive

On December 1st, 2018, the provincial authorities in China's Henan Province released Henan Province Announcement 2018/36 (hereafter, 'Announcement'); their regional iteration of the State Council's national announcement, Guofa 2018/No.19.

The provincial version revealed subsidies for certain foreign investments as follows:

  • For every USD 10m invested in a firm in the region, reward USD 71,900 (CNY 500,000);
  • The same as above, but with a 50% extra subsidy for investments in Zheng Luoxin National Independent Innovation Demonstration Zone, and Zhengzhou Airport Economic Comprehensive Experimental Zone;
  • Selected foreign-invested R&D institutions will be eligible for one-off rewards of USD 719,000 (CNY 5m).

The rest of the Announcement was broadly an echo of that from the State Council.

No sectoral scope is provided in the Announcement, it is therefore classified as horizontal. However, all foreign investments in China are governed by the 'negative' and 'encouraged' lists; please see related measures.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
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