Trade Resources Policy & Opinion Introducing Some Comprehensive Situation of Hebei: Investment

Introducing Some Comprehensive Situation of Hebei: Investment

(i)Policy and Administrative Rules

Catalogue of Related Laws

Foreign Trade Law of the People's Republic of China

Customs Law of the People's Republic of China

Law of the People's Republic of China on Import and Export Commodity Inspection

Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures

Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures

Law of the People's Republic of China on Foreign-Capital Enterprises

Company Law of the People's Republic of China

Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine

Law of the People's Republic of China on Control of the Entry and Exit of Aliens

Law of the People's Republic of China on the Control of the Exit and Entry of Citizens

Securities Law of the People's Republic of China

Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises

Individual Income Tax Law of the People's Republic of China

Law of the People's Republic of China on the Administration of Tax Collection

Environmental Protection Law of the People's Republic of China

Law of the People's Republic of China on Evaluation of Environmental Effects

Law of the People's Republic of China on Promotion of Cleaner Production

Law of the People's Republic of China on Prevention and Control of Desertification

Marine Environment Protection Law of the People's Republic of China

Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution

Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste

Law of the People's Republic of China on Prevention and Control of Water Pollution

Law of the People's Republic of China on Prevention and Control of Environmental Noise Pollution

Law of the People's Republic of China on Prevention and Control of Radioactive Pollution

Frontier Health and Quarantine Law of the People's Republic of China

Labor Law of the People's Republic of China

Trade Union Law of the People's Republic of China

Searching Website for the Related Laws

1. Searching System of Laws and Regulations of China (website of National People's Congress of China)

http://law.npc.gov.cn:87/home/begin1.cbs

2. China Legislative Information Network System

http://www.chinalaw.gov.cn/jsp/jalor/index.jsp

3. Ministry of Commerce

http://www.mofcom.gov.cn

The above-mentioned websites are for reference only.

Administration on Foreign Exchange

1. State Administration of Foreign Exchange, the Shijiazhuang branch administrates opening of bank account of foreign-invested enterprise and foreign exchange of capital projects and implements an annual survey system for foreign exchange.

2. After processing registration for foreign exchange, foreign investors may open a bank account of foreign exchange settlement and foreign exchange capital at appointed bank for foreign exchange by providing Registration for Foreign Exchange for Foreign-invested Enterprise and Account Opening Notification issued by the Administration on Foreign Exchange.

3. Foreign investors may open foreign exchange loan special account of Chinese financial organizations within China by providing Account Opening Notification and Registration for Foreign Loans issued by Administration on Foreign Exchange.

4. The foreign investors may process foreign exchange settlement and sales at appointed banks.

5. Approved by concerning departments, foreign investors may purchase domestic enterprise products to export and gain comprehensive indemnification. The foreign investors may invest the profit gained to domestic enterprises or new enterprises. Besides a part of the tax drawback, the foreign investors can enjoy equal preferential treatment of foreign exchange investment.

(ii) Guidelines on Investment

We take market demand as guideline, promote the use of new hi-tech and advanced applied technology to modify traditional industries, push industrial structure upgrade, rationally adjusted productivity distribution, and selectively develop new hi-tech industry, so as to form the industrial structure, under which service industry develops in an all-round way, hi-tech industry takes the leading role and basic industry and manufacture industry serve as support.

Ten Key Leading Industries

1. Iron & Steel Industry

Development should be focused on:

(1) Adjustment of distribution by concentrating new productive capacity on coastal areas. Great iron & steel complexes shall be constructed relying on the Caofeidian special-purpose pier to make Tangshan City the biggest iron & steel base in China.

(2) Adjustment of product structure. Development of inland steel companies shall be correctly guided and small steel works and shall be eliminated so as to be more accurate and professional and increase the proportion of fine steel board, pipe and belt. Development of alternative import products shall also be encouraged.

2. Medicine

Development should be focused on:

(1) Promoting deep processing of chemical medicine and research and develop of new varieties and specifications of buffering controllers.

(2) Accelerating construction of the Chinese herb planting base conforming to GAP formulations to promote the industrialization and modernization of Chinese medicine.

(3) A technological platform conforming international standards for new medicine research and developing shall be constructed to strengthen the development of research for new medicine varieties to perfect new medicine developing systems.

(4)Great efforts shall be given to develop the four biological pharmacy technologies relying on the North China Pharmaceutical Group (NCPG), namely microbial ferment, genes project, cell engineering and enzyme engineering.

(5) The superior position of the products as antibiotics and vitamins relying on NCPG and the Shijiazhuang Pharmaceutical Plant shall be consolidated. The construction of the Shijiazhuang chemical pharmacy industrial park, biological pharmaceutical industrial park, medical industry engineering park and medical industry scientific and technological park shall be accelerated so as to develop it into the most competitive medicine industrial base in China.

3. Petrochemical Industry

Development should be focused on:

(1) Relying on oil refining and taking the combination of petrochemicals and sodium chlorinating chemicals as brealethrough, we should make great effort to promote the development of PVC and TDI with the output of PVC and TDI reaching one million ton and 100 thousand respectively. The complex enterprises, whose major products are basic materials of petrochemical industry and ethylene hydrocarbon, shall be quickly developed.

(2) Efforts shall be made to construct ethylene and propylene productive installation so as to construct a world level chemical industry park around 2015.

(3) To construct Caofeidian deepwater crude oil pier and the modern oil logistic industry based on the oil reserve.

(4) The fined chemical industry, taking Lucky Film as an example, shall get accelerated by adopting advanced technology.

4. Equipment Manufacturing

Development should be focused on:

(1) Automobile and Parts. Much more attention shall be paid to the development of light vehicles, special-purpose vehicles and multi-functional business cars and parts. The construction of 3 automobile industrial parks, namely chang'an in Dingzhou, Changcheng in Baoding and Yukang in Handan and 2 automobile parts base, namely Tangshan and Langfang shall be accelerated.

(2) Industrial and Engineering Equipment. Special-purpose equipment such as transformers, engineering machinery, conveyors and environmental protection equipment shall be quickly developed.

(3) Electronic and Communication Products Manufacturing. Main points shall be put on the development of modern communication products, new displayers, integrated circuit (IC), components and new power supply and network information applied products.

(4) Agriculture and By-products Manufacturing Machinery. The main focus shall be put on the development of wheat and corn combine-harvesters, equipment for water-saving irrigation, farming equipment for cultivating and planting, comprehensive utilization of straw and accurate deep-processing machinery for by-products such as cotton, power, bean and vegetable.

5. Building and Materials

Development should be focused on:

(1) Glass. Plate glass shall get steadily developed. Great efforts shall be given to the development of ultra thin and thick glass. The exploitation of functional glass products such as energy-saving, antibiosis, self-clearing and heat isolated glass shall be developed. Manufacturing glass with good quality and special function shall be promoted. Qinhuangdao city shall be constructed into a glass manufacturing base at a world advanced level with large production scale, complete sets of equipment.

(2) Cement and Ceramics. Making stable output of the cement, promoting productive technology of dry cement, increasing productive scale of the single plant, renovating traditional ceramic techniques with advanced technology so as to upgrade the products, increase capacity of obtaining foreign exchange and foster Tangshan city and Handan city as a product and export base.

(3) Chemical Building Materials. Main focus shall be put on the development of a new building curtain wall, plastic doors and windows, special-shaped materials, glass fiber reinforced plastics and other plastic pipes and parts such as PVC, PE(X) and PPR building materials.

(4) New Building Material. More attention shall be on the development of new wall materials, decorated materials, water-proof materials and heating radiators. Xingtai building materials base will be constructed as a joint project with Beixin Building Materials Group.

(5) New Building Structure System. Development of a new building structure with the characteristics of heat preservation and energy-saving is encouraged. Building structure systems using heavy-bearing blocks (not only the clay bricks), light steel and energy-saving materials shall be popularized.

6. Food Industry

Development should be focused on:

(1) Dairy Industry. The development in this field shall be accelerated as follows: Making the leading enterprises bring along the whole dairy industry, adjusting of product structure and extension of scale for some key enterprises such as the Shijiazhuang Sanlu Group, speeding up the construction of the milk source and manufacturing base in Shijiazhuang, Tangshan, Zhangjiakou and Chengde cities.

(2) Meat Processing. Promoting the development of cutting processing of pork, beet, and mutton, and finished and semi-finished products of instant dishes. The main points shall be put on the construction of 5 beef breeding and processing bases such as Langfang and Cangzhou and the other 5 pig breeding and processing bases such as Tangshan and Hengshui.

(3) Wine. More efforts shall be made to the development of dry white wine, dry wine, brandy and various fermented juices with a lower degree of alcohol. Much attention shall be paid to the two big quality wine farming and processing bases in Huailai-zhuolu and Changli in China.

(4) Grain and Oil Processing. The development of a variety of special-use powders, refined powders, nutritious instant food, mixed dining food, quick frozen food and superior cooking oil, salad oil, butter and artificial butter and deep processing products shall be greatly advanced. Qinhuangdao, Langfang, and Xingtai grain and oil processing bases shall be constructed.

7. Textile and Clothing Industry

Development should be focused on:

(1) More efforts shall be paid to the development of four products: New chemical fiber, high-tech content and profit textiles, textiles for decorating use and industrial textiles. Making great endeavor to nurture the famous leading clothes brands.

(2) More points shall be put on the technological renovation and equipment replacement of key chemical fiber and textile enterprises in Shijiazhuang, Baoding and Handan. Hengshui textile base is about to be constructed.

(3) The three clothes parks: Xuechi, Zhuoda and Rongcheng, Qinghe casher mere industrial park and Chengde Dixian knitting park are greatly developed.

8. Information Industry

Development should be focused on:

(1) Efforts shall be made to the construction of an information industrial base and information industrial park, namely Shijiazhuang and Langfang information industrial bases and Shijiazhuang, Baoding, Yanjiao and Qinhuangdao software industrial parks and an information technological transforming center.

(2) Giving full play of the existing superiority and potentiality of new displayers, network communications, electronic components and semi-conducting materials, and the construction of auxiliary systems shall be promoted. The productive chains and the auxiliaries such as liquid crystal displayers, communications and network equipment, parts and terminals shall be consummated.

(3) Exploiting and developing digital complete sets, concentrating more efforts on the development of products such as digital machine-card apart box, network monitoring systems, information treatment products, automobile electronics, environmental protection electronics and intelligent apparatus.

(4) Greatly pushing the software and integrated circuit (IC) industry. Main points shall be given to develop the projects as statistic information systems, current data base systems, IC packing equipment and radio-frequency IC.

9. Modern Logistic Industry

Development should be focused on:

(1) Greatly fostering Shijiazhuang, Qinhuangdao, Langfang, Handan and Zhangjiakou regional logistic centers to form a modern logistic network that will cover the whole province, merge together cities both at Beijing and Tianjin and connect cities both at home and aboard. Shijiazhuang city, on basis of the important business center and medicine capital of North China, shall be built into a northern logistic commerce and trade hub featuring collecting and distributing of small commodities, medicine and textile products. Qinhuangdao, relying on the advantages of land and sea transportation, shall be built into a comprehensive commodity collecting and distributing place featuring grain and oil processing and selling, trade and distribution of the import and export of fruits, transit and combined transport of energetic products.

(2) Construction of great logistical parks such as Shijiazhuang international logistic park, Qinhuangdao Donggang Road logistic park, Langfang international regional logistic center and Handan comprehensive logistic park shall be accelerated.

(3) A bunch of scaled and specialized logistic enterprises such as Shijiazhuang Zhongchu, Qinhuangdao Beifang, Handan Dongxin etc., will be nurtured.

10. Tourism

Development should be focused on:

(1) Taking the market as the guidance. Sightseeing tours shall be kept as a sustained development and leisure & holiday tours shall be greatly promoted on the basis of fully taking advantage of the existing scenic areas and spots.

(2) With the famous brand stratagem, a great tourist circle shall be constructed merging with Beijing and Tianjin by strengthening the regional cooperation.

(3) Three areas as leisure & holiday resorts around Beijing and Tianjin, leisure & holiday resorts in Shijiazhuang, Qinhuangdao and Tangshan, the tourist area around the Bohai sea and another two zones like the Great Wall tourist zone and the Taihang Mountain zone will be developed.

(4) Much shall be done in tourist development, such as the quickening of the construction of tourist infrastructure, upgrading the tourist service, and purifying the environment of scenic spots.

Doing Business in Hebei Province of China: Investment

(iii)Procedures for Establishing a Foreign-invested Enterprise

1. Procedure for Establishing a Foreign-funded Enterprise

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2. Approval on Establishment of Foreign-funded Enterprises

The approval on setting up Sino-foreign equity or contractual joint venture or foreign-funded enterprises is required.

(1) The proposal and application for projects shall be submitted to the local development and reform authorities with the following documents attached:

a. All investment parties' registrations (business license), commercial registration and new audited Financial Statements (Balance Sheet, Income Statement, Cashflow statement), Cash Credit Letter issued by bank;

b. Investment Letter of Intent, decisions of board of directors on projects with adding investment or buy-out.

c. Financing Letter of Intent issued by banks

d. Evaluation in impact on environment issued by authorities for environmental protection;

e. Suggestion on project's planning and site-selection issued by authorities for city planning;

f. Pre-qualification on land use of projects issued by authorities for land and resources;

g. Projects with state-owned assets and land as investment, required to get Identification from competent authorities;

h. Key issues, required to be evaluated and demonstrated, shall get evaluation report provided by qualified consultation agencies.

According to the ratification purview, after ratified and approved by authorities for development and reform, the project unit shall submit the necessary documents to commercial authorities to get examined and approved on contracts and charter.

(2) Approval Purview for Foreign-funded Projects.

a. Conforming to the Regulations on Foreign Investment Guiding by State Council, the Industrial Catalogue Guideline on Foreign Investment promulgated jointly by the Ministry of Commerce and National Development and Reform Commission, the projects, with the total investment above 100 million US dollar in the categories of encouraging and permission and above 50 million US dollar in the category of limiting (including adding investment and buy-out, same as following), shall be examined, approved and submitted to National Development and Reform Commission to approve by Provincial Development and Reform Commission.

b. The projects, with total investment above 50 million US dollar in the categories of encouraging and permission or requiring import tax-free or in the category of limiting, shall be approved by Provincial Development and Reform Commission.

c. The projects, with total investment less than 50 million US dollar in the categories of encouraging and permission shall be approved by the local authorities regarding development and reform, or investment authorities for state or provincial development zone.

3. Approval on Establishment of Foreign-funded Enterprises

(1) The following documents for establishment of foreign-funded enterprises shall be submitted to commercial competent administrations (Approval Administrations for short hereinafter):

a. The establishment of Sino-foreign joint-ventures and contractual joint venture

The Request for Instruction from municipal commercial department, development zone, or special administrative counties

Application for Sino-foreign joint-ventures and contractual joint ventures

Feasibility study drawn up by each party involved

Contrats or charters signed by each party involved

Name list of directors, vice directors, and candidates for shareholders form each party involved

Business license of Chinese parties

Business license of foreign parties, certification of letter of credit, and other certified and identified documents

List of Imports

The notice of approval of name of foreign-funded enterprises

Other documents required by relevant laws or regulations

b. Establishment of foreign-funded enterprises

The Request for Instruction from municipal commercial department, development zone, or special administrative counties

Application for setting up foreign-funded enterprises

Feasibility study

Charter of foreign-funded enterprises

Name list of authorized representatives ( or candidates from board)

Business license of foreign parties, certification of letter of credit, and other certified and identified documents

Written reply from local government of county or above county-level

List of imports

The notice of approval of name of foreign-funded enterprises

Other documents required by relevant laws or regulations

(2)Authority Range on Approval

a. The Range of Authority Of Hebei Provincial Department of Commerce for Projects' Examination and Approval Including total investment above 30 million and below 100 million US dollar in the categories of encouraging and permission and total investment below 50 million US dollar in the category of limiting (including adding investment), and purchasing projects and projects in special industries, with the approval for special purpose by state authorized to provincial department of commerce.

b. Authority Range on Approval of municipal commercial departments, administrative committee of above provincial-level development zone, and special administrative counties

Projects with total investment below 30 million US dollar (including adding investment) included in "Investment Guide" in the categories of encouraging excluding permission in setting up and changing of foreign-funded enterprises, excluding projects with the approval for special purpose by state authorized to procincial department of commerce.

(iv)Living Environment

1. Working and Residence Permit

The foreigners who invest or work in Hebei as well as their spouse or children may get a foreign residence permit within 1 to 5 years issued by the police exit and entry administration departments according to relevant conditions.

2. The Urban Living Environment

The ecological environment in Hebei is developing steadily and the water pollution prevention in key drainage and sandstorm areas in Jingo-Jin achieved great progress. There are seven national natural ecological protection areas, fi fteen provincial-level, with a total area of 467 thousand hectares; the forest coverage rate reached 23.25%, urban forestry rate reached 31.66%. The urban water supply, comprehensive heat supply, harmless garbage processing, and sewage disposal all were improved dramatically. 25 sewage disposal plants had been established, daily capacity of comprehensive sewage disposal reached 223 tons, comprehensive processing rate of garbage from living reached 25%. The air quality was improved dramatically; up-to-standard Ⅱ weather was 283 days each year.

3. Education and Medical Sanitation

There are 874 middle vocational schools, which have 9,290,000 students, and there are 25,617 middle and primary schools with 10,099,000 students. The enrollment rate of school-aged children reached 99.7%. Nine-year compulsory education rate reached 93.8%.

Hebei province is actively developing the establishment of three systems for public sanitation. Totally there were 3,284 sanitation organizations, 191,000 sanitation technical staff members, 162,000 beds, and the control center for disease prevention etc. The public sanitation system was well developed.

4. Driver's License

The person holding outside driving license may apply for P.R.C. motor vehicle driving license. The procedures for application are as follows: fill the "Application Form for Motor Vehicle Driving License";submit the identity of applicants, health certificate issued from medical establishment above county-level, and the original driver's license, if it is not in Chinese, the applicants should present the Chinese version. All the examination conditions were met, the vehicle administration authority will arrange test within 30 days after applicants' booking.

(v)Reference Prices of Basic Elements

1. Land Use

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2. Power Supply

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3. Water Supply (Based on the Data of Shijiazhuang)

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4. Gas Supply (Based on the Data of Shijiazhuang)

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5. Labor Cost in Hebei Province

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6. Communication Fee

Fixed Phone Fee (China Network Communication)

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Standard for Wireless Phone Fee

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Related Articles:

Doing Business in Hebei Province of China: Survey

Doing Business in Hebei Province of China: Economy

Doing Business in Hebei Province of China: Development Zones

Source: Ministry of Commerce of the People's Republic of China
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