Shanghai has promised more preferential treatment in a revised hi-tech policy recently to attract more foreign capital to the local hi-tech industry and to establish research and development institutes.
The new policy stipulates that the land use fee of foreign ventures will gradually be repatriated three years after the joint ventures are ratified as newly developed hi-tech projects in Shanghai.
Such foreign ventures will also be able to pay reduced business and income taxes five years after their being ratified.
Foreign ventures with input in research and development in China that has increased by over 10 percent over the year before can enjoy income tax cuts equal to 50 percent of the input.
R&D centers established by foreign business-people will be exempt from tariffs when importing facilities, accessories and technologies that are available in China.
This is the second time Shanghai has made a major revision to hi-tech policy.
(Xinhua 12/28/2000)
