Situated in the southern part of Guangdong Province, China, Zhuhai City is a well-knomn garden-like coastal city connecting with Hong Kong by water in the east and bordering on Macao in the south. One of the earliest Special Economic Zones in China, it is endowed with local legislative rights granted by the National People's Congress. It occupies an area of 7,650 square kilometers and has a population of 1.15 million ,Founded in 1979, Zhuhai City set up its Special Economic Zone(SEZ) in 1980.For more than 10 years, the economy in Zhuhai has been consecutively increasing rapidly and its city construction and infrastructure have been constantly upgraded and perfected.
Zhuhai has long been a hot spot for foreign investment. By the end of 1997, the whole city has accumulatively approved 7,704 contracts involving foreign investment and has a contractual foreign investment of USD 11.6billion and actual use of foreign investment of USD 5.6 billion.Up to now, 2,459 "foreign investments enterprises" have been established and put into operation and the gross industrial output value of foreign investment enterprises accounts for 70% of that of the whole city. Twenty-five transnational corporations have settled in Zhuhai.
Based on the hills at the back and overlooking the sea, Zhuhai is endowed with a mild climate and splendid scenery. A "National Sanitary City", "Model City of Environmental Protection" and "Tourism City ",Zhuhai enjoys convenient transportation,well-built public facilities and perfect investment environment.
Zhuhai Municipality has one county and nine districts, i.e. Domen County, Xiangzhou District,Wanshan District, Pingshan District, Hongqi District, Qiao District,Zhuhai harbour District,Zhuhai High and New-tech Development Zone (Sanzao District), Zhuhai Bonded Zone and Hengqin Economic Development Zone.Its municipal government is located in Xiangzhou District.
Communications and Transportation
With fairly developed sea, land and air transportation facilities, Zhuhai has easy access of communications and transportation. Being a major key harbor in Southern China, Zhuhai Harbor has an applicable coastal line of 75 kilometers, along which more than 100 berths of 1 to 250 thousandtons can be constructed. Their annual handling capacity is 150 milliontons. Now two berths of 20 thousandtons have been put into use. In addition, other harbors, i.e.Jiuzhou Harbor, Xiangzhou Harbor, Qianshan Harbor, Wanshan Harbor, Jingan Harbor and Domen Harbor have nearly 100 berths of 500 tons and above.
With smooth and broad high-grade highways spreading out in the city and radiating to other parts of the country in many directions, Zhuhai has more than 600 passenger and freight transportation services. It has long distance buses and container trucks to nearly 100 cities around the country. There are more than 30 cities bus routes and over 2,000 taxis in the city.
With a total length of 142 kilometers and a total investment of RMB 3.4 billion, the Guangzhou-Zhuhai Railway Line Project was initiated on October 23, 1997. Constructed in accordance with the First Grade Standards of National Railway Line and reserving conditions for electrification and passage ways to Macao, the line is expected to be fully constructed by the year 2000. By then ,its freight volume may reach 9.5 million tons and passenger volume may reach 160 hundred million man-times.
With an area of 4 million square meters, Zhuhai Airport was constructed in accordance with modern international standards. It has opened more than 30 domestic routes and now handles more than 130 flights every week.
Post and Telecommunications
The post and telecommunications has been rapidly expanding in Zhuhai. IDD and long distance calls extend to various parts of the world and more than 1,800 cities in China.
Zhuhai is among the top cities where telephones have been highly popularized. The system offers dozens of services, such as EMS, Digital Data Transfer, Digital Data Special Line, Group Transfer, Electronic Data Transfer wireless pager, mobile Telecomanication and FAX. So, the out-going communications are rapid and convenient.
Tap Water Facilities
Zhuhai possesses rich resources of fresh water and the rate of flow per second during the dry season is 1,000 cubic meters. Aseries of water supply facilities, such as Xiangzhou Waterworks, Gongbei Waterworks, Western District Waterworks, have been constructed. With a daily supply capacity of 1.5 million tons, they fully meet the water needs for living and production of the whole city.
The electricity of Zhuhai is mainly supplied by the great Guangdong electrical network.The city has established a group of large scale electrical facilities, such as Qianshan Diesel Power Station, Hongwan Turbine Power Station and Hongwan Diesel Power Station.The 3.72 million-kilowatt Zhuhai Power Station is already under construction. The power-generating capacity of the whole city is 650 thousand kilowatts and can fully meet the electricity needs for living and production of the whole city.
With fairly developed financial services, Zhuhai has more than 600 financial networks all over the city . In addition to the Peotle's Bank of China and Commercial Banks of State, other foreign-funded banks, such as Nantung Bank,Standard Charter, Bank of East Asia, BNU Bank, Everbright Bank of China have set up branches in Zhuhai City.
Science, Education, Culture and Medical Care
With a fairly developed scientific, educational and cultural undertakings, Zhuhai has two full-time general institutions of higher leaning, 5 secondary schools, 271 middle and primary sdchools, 140 kindergartens and 1 special school, providing its investors with convenience for their children to be taken good care of or sent to schools. The city is complete with various kinds of cultural facilities, such as libraries, museums, theaters, radios and TV stations. With excellent medical conditions and a complete array of state-of-the-art equipment and instrument, it has 220 various kinds of medical institutions.
Zhuhai provides favorable conditions to foreign investment enterprises. Some of these favorable conditions have been stipulated by the State of Guangdong Province. For example, within prescribed limits, there are conditions allowing for reduction and exemption of tariffs for the imported equipment, added-value tax for imports duties and corporate income taxes, etc. for the foreign investment enterprises.Some of the conditions are stipulated and implemented by Zhuhai itself, such as the favorable and national treatment given to foreign investment enterprises in land use, service prices and product sales. They are listed below:
1.Tariffs, Added-value Taxes for lmport links
1)For those foreign investment projects which comply with the encouraged category and type of restricted category and for which technology can be transferred, the imported equipment for self-use within the gross investments is exempt from tariffs and added-value tax for import link (excluding a total of 20 categories of commodities listed in "A List of Texed imported Commodities for Foreign investment Projects")
2) The self-use equipment imported with foreign governmental loans and loans from international financial organizations, the imported equipment which is provided by the foreign investors in the processing trade and not lpriced is exempt from tariffs and added-value tax for imports excluding the commoditise listed in the "List of Taxed imported Commodities for Foreign investment Projects".
3)For projects that comply with the above provisions, the technology, parts and auxiliary equipment and spare parts are also exempt from tariffs and added-value tax for import links.
2.Corporate lncome Taxes
1)For a foreign investment enterprise, the rate for corporate income taxes established in Zhuhai Special Economic Zone is 15%.
2)A productive enterprise with an operation period of more than 10 years can be treated favorably with a first-two-year exemption from the levying of corporate income taxes and allowed a 50% reduction of corporate income tax within the following three-year period counting from the first profitable year.After these time limits expire, an enterprise that has been an product-exporting type can be given a 10% reduction in the collection of corporate income taxes. For an enterprise that has been verified as technological advancement enterprise.its 50% reduction for the following three-year perioding the levying of corporate income taxes can be extended.
3)With application and approval, a service-type firm with an operation period of more than 10 years and a gross foreign investment of USD 50,milliom can be treated favorably with a first-year exemption of corporate income taxes and allowed a 50% reduction of corporate in the following two-year perilod.
4)With approval,a foreign investment enterprise engnged in the construction of ports and harbors can be treated favorablly with a five-year exemption and 50% reduction of corporate income taxes for the second five-year period.
5) With approval, financial institutions such as foreign-fund banks with an operation period of over 15 years and a gross investment of USD 10 million from foreign investors or an allocation of operation capital, can be treated favorably with an first-five-year exemption and a 50% reduction of corporate income taxes in the second and third year of corporate income taxes counting from the first profitable year.
6)With approval from the Taxation Authorities, a foreign investment enterprise which has reinvested its after-tax profits in Chinese territory and has an operation period of five years and above can be refunded 40%of the paid corporate taxes of the reinvestment; in case it is a "two-type" enterprise (product-exporting and advanced technology), it can be fully refunded of the paid corporate income taxzes of the reinvestment part.
3.Added-value Taxes and Consumption Taxes
1)For the self-fund export of commissioned export of the produced goods of foreign investment enterprise, the taxation conditions of "exemption, compensation and refund"are implemented. Tax"exemption" refers to the exemption of the value-added taxes for the production and sales links of the enterprise.Tax "compensation"means the enterprise can use the incoming taxes it bears for purchasing domestic raw materials to compensate its liable amount of taxes that cannot be fully refunded within the first quarter.
2)The goods imported by foreign investment’s materials and processing imported materials are exempted from the added-value taxes for imported links and consumption taxes. After being exported, the processed goods are exempt from added-value taxes and consumption taxes
3)ln case the new product of the foreign investment enterprise belongs to a invention patent product first produced within the province or the new product national class within three years, applicable new type patent patent products and provincial new product within 2 years,the financial department will refund the local share of the new value-added taxes to the enterprise(25%) on an proportion no less than 50%.
4.Personal lncome Taxes
1)The foreigner's savings and interest deposited in the financial institutions within Chinese territory are exempt from personal income taxes.
2)The levying of personal income taxes on compatriots of Hong Kong, Macao and Taiwan is conducted with reference to the above conditions.
1)lf any foreign investor invests on the encouraged and permitted industries in "A Directory to Foreign lnvestment industries",and at the same time the imports of raw materials and products export do not involve quota license, the foreign investor can specify the ratio of the commodities for home and overseas markets and the ratio of domestic sales can be extended to100%.
2)A foreign investment enterprise defined as"Advanced Technical Entity"by our municipal government, the ratio of domestic sales can be extended to 100%
3)For the foreign investment on the "vegetable basket pjroject" and the development high-yield, top grade and high efficiency agriculture, the radio of dometic sales can be 100%.
1)Any foreign investment on productive projects which have been appraised as new high-tech industrial project,will be treated favorably in land use.land use.The price is RMB80-400 per square meters(the average land price for common industrial use is RMB236-700.
2)Any foreign investment projects,which have been appraised as having reached advanced international levels by the Zhuhai Municipal Committee of Science and technology and approved by technology and approved by Zhuhai Municipal government,will be treated by Zhuhai Municipal government,will be treated most favorably with an exemption from landowner's royalties.
3)For the foreign investment projects which occupies much land,an installment or delayed payment schedule of the landowner's royalty can be implemented.
1)The untility fees for foreign investment enterprises are uniformly charged according to the utility prices for Chinese enterprises.
2)When foreigners,compatriots from Hong Kong, Macao and Taiwan,foreign investment institutions purchase or rent such real estates as office buildings, commercial buildings,plants or residence,the charges and administration fees are the same as those of Chinese enterprise or urban residents.
3)With valid certificates,such as Temporary Residence Permit,foreigners,compatriots from Hong Kong, Macao and Taiwan can be treated equally as the local residents in the charges of hotel lodging, transportation and touring scenic spots.
8.Outward Remitatance of Profits
The foreign investor's after-tax Profits of the capital shared after the termiantion of contract or the cleaning up of debts can be remitted abroad in accordance with relevant regulations. The outward remittance is exempt from the taxes for remittance amount. The wage earnings and other legitimate incomes of foreing employees, after being levied personal income taxes according ot the law, can be remitted abroad in accordance with relevant regulations.
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