Shanghai Hot Destination for Foreign Investment

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Shanghai- Hot Destination for Foreign Investment
Conférence High Tech en Chine Conférencier
Jianglin Zhang
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Basic information of Shanghai

• Geographical Location
• in the center of Chinas Pacific coast at the
  mouth of the Yangtze River
• Economic status
• Chinas largest economic center
• Production value of Shanghai
• increasing at a rate of 10 or more for 14
  consecutive years
• GDP of Shanghai
• USD113.6 billion (2005)
• USD6100 per capita
• Foreign investment by the end of 2005
• amounting to99.6 billion USD
• More than50 goes to services industry
• Increase significantly in IT field

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Shanghai attaches great importance to regional
economy

• As an economy at a stage of accelerated
  institutional, industrial and structural
  transmission
• Shanghai introducing and developing headquarter
  economy is a matter of certainty
• Foreign companies
• By the end of 2005
• 130 investment companies
• 124 MNC headquarters

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The advantages to multinational companies

• Strong financial support
• Great flexibility with respect of business
  maneuver in Asia or
• other countries and regions
• A pool of management talents
• The preferential policy
• execute more capital management functions
• employee training subsidies
• reduced personal income taxes
• import and export management rights
• residence permits and travel visas for foreign
  nationals

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Preferential policy to attract foreign fund to
build RD Centers

• Companies establishing RD centers in Shanghai
  enjoy the following privileges
• Research equipment for company use
• customs duties and accompanying value added taxes
• Software purchased from abroad
• custom duties and value added tax
• Income from technology services
• business tax
• Companies with RD expenses increasing at over
  10 annually receive a 50 reduction of tax rates

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Grant foreign investors distribution right

• Measures for the Administration on Foreign
  Investment in Commercial Fields
• Promulgated by the Ministry of Commerce and on
  April 16, 2004
• Implemented on June 1, 2004

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The business which will be influenced by the new
policy

• Commercial retail
• For foreign investors doing commercial business
• Lower the registration requirement
• Eliminate a number of regional restrictions
• Trade wholesale
• The minimum amount of the capital required for
  wholesale is RMB500, 000
• Foreign invested manufacturing companies may
  apply to enlarge their business scope
• Franchising
• Allow foreign invested commercial enterprises to
  engage in franchising business, which was
  previous restricted

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Promote the development of advanced manufacturing
industries

• Shanghai holds a complete industrial system with
  strongly complete processing capacity in advanced
  manufacturing
• IT
• Automobile Industry
• Petrochemical Industry
• Refined Steel

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Construct city transportation infrastructure
system

• construction focus
• Deep-water Harbor
• Yang Shan Harbor plans 50 deep berths
• An annual handling capacity of 22 million TEUs
• Airport
• We will make Shanghai an international hub for
  both passengers and cargos based on more
  international and regional lines by 2007
• Info Hub
• We will achieve advanced broad-band networks with
  high capacity international access, up to the
  standards of those in the CBD of developed
  nations.
• Railway Network
• Our long-term railway network will have 17 lines
  and a total of 780 kilometers, among which, 4
  will be running under CBD, 8 in the suburbs and 5
  are light railways.
• Express Highway Network
• We will shape 7 express highways connecting major
  cities in the neighboring areas and integrate
  into Jiang Zhe Hu express highway network

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Shanghai Foreign Economic Relation Trade

• Europe Business Team Office is one department of
  SFERT
• It aims to promote international investment,
  trade and business cooperation between Shanghai
  and Europe
• We specialize in helping the foreign investors
  from Europe Region
• Law Policy Consultancy
• Investment Projecting
• Partner Selection
• Government Coordination etc
• Contact
• Contact Person Jianglin Zhang
• Email zhangjl_at_chinahanse.com
• Tel [phone]

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Conférence High Tech en Chine Conférencier
Jianglin Zhang