Recently, Bureau of Commerce of Dongguan City has produced brochures which interpret preferential policies for businesses and has distributed them to enterprises. Some company officials said that they would definitely read the brochures carefully so that they can make good use of these preferential policies and apply for policy support in accordance with the actual conditions of the company.
Bureau of Commerce of Dongguan City produced this policy interpretation brochure to make a series of preferential policies, including capital support, more dynamic and accessible through intuitive and clear interpretation, so that companies can get informed of the policies, understand the policies, and make good use of the policies. In this way, the implementation of these policies can bring actual benefits to enterprises, and help them resist risks, transform and upgrade, and grow stronger, jointly promoting Dongguan’s open economy to achieve high-quality development.
Policy highlight 1: promote the development of cross-border e-commerce
Dongguan encourages local manufacturing enterprises to settle in cross-border e-commerce platforms. What kind of enterprises can get funding after settling in the cross-border e-commerce platform? What are the incentives and requirements in detail?
Manufacturing companies applying for funding should be the ones that were registered in Dongguan and settled in a cross-border e-commerce third-party platform after January 1, 2019. The actual foreign trade volume reported by the company should reach 1 million US dollars (in case of discrepancy, customs data shall prevail). Such enterprise can apply for funding at an amount of 50% of the registration fees and service fees (including transaction commissions, advertising fees, warehousing and distribution fees) it paid to the platform in the year it settled in that platform.
Policy highlight 2: promote enterprises’ transformation and upgrading
Dongguan encourages foreign investment and encourages enterprises to increase capital and expand production. Foreign-invested manufacturing projects (except for park platform development, real estate and property management, warehousing and logistics, financial industry, and similar financial projects) that are newly signed or have increased capital can enjoy policy support on conditions that they meet certain standards.
For new projects with an annual actual foreign investment (excluding foreign shareholder loans, similarly hereinafter) exceeding 50 million US dollars, capital increase projects of more than 30 million US dollars, and headquarters or regional headquarters of multinational corporations whose market capitalization is more than 10 million US dollars established in Dongguan between 2019 and 2021, the Department of Finance of Guangdong province’s policy of providing a funding up to 100 million RMB shall apply. Meanwhile, Dongguan Finance will also provide a funding at a ratio of 1: 0.5 to provincial funding, but the maximum funding for a single project is 10 million RMB (for those that have not received provincial funding, Dongguan Finance will reward 60,000 RMB for every million US dollars of annual actual foreign investment the project has attracted. The reward ceiling is 6 million RMB every year).
For new projects with annual actual foreign capital of 30-50 million US dollars (inclusive) and capital increase projects of 10-30 million US dollars (inclusive) established in Dongguan from 2019 to 2021, Dongguan Finance will reward 60,000 RMB for every million US dollars of annual actual foreign investment the project has attracted. Overseas investors who newly invest in encouraged and permitted manufacturing projects using the profits distributed by Chinese tax-resident enterprises can be rewarded based on the above criteria.
Reward mechanism for functional parks and industrial parks
Functional parks standards:Functional parks should havescientific and reasonable planning, advanced infrastructure, complete public services, and outstanding radiation capabilities. The park's operating entity must be a registered corporate legal person in Dongguan and the building area should not be less than 10,000 square meters. There should be a customs office in the park. The total import and export volume of cross-border e-commerce is no less than 1 billion RMB.
Industrial park standards: Industrial parks should have scientific and reasonable planning, advanced infrastructure, complete public services, and outstanding radiation capabilities. The park's operating entity must be a registered corporate legal person in Dongguan and it should have a building area of no less than 10,000 square meters. There should be no less than 30 cross-border e-commerce businesses in the park (including but not limited to platforms, operation enterprises and service enterprises such as logistics, payment, finance, translation and interpretation, training, etc.).
Incentives for functional parks:The park sponsor is rewarded 500,000 RMB for every 100 million US dollars of turnover the park generates; each park can only apply once during the validity period of this policy, and the reward ceiling is 5 million RMB.
Incentives for industrial parks: The park sponsor is rewarded 100 RMB for every square meter rented or sold to the e-commerce enterprises in the park; each park can only apply once within the validity period of this policy, and the reward ceiling is 5 million RMB.