Laws of the People's Republic of China

the General Office of the State Council

Circular of the General Office of the State Council on Transmitting the Opinions of the Ministry of Commerce and Other Departments on Promoting the Further Development of National Economic and Technological Development Zones

Guo Ban Fa [2005] No. 15

The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, all ministries and commissions of the State Council, and organs directly under the State Council:

The Opinions of the Ministry of Commerce, Ministry of State Land and Recourses, and Ministry of Construction on Promoting the Further Development of National Economic and Technological Development Zones, which have been ratified by the State Council, are hereby transmitted to you. Please implement it earnestly.

General Office of the State Council

March 21, 2005

Opinions on Promoting the Further Development of National Economic and Technological Development Zones

To establish national economic and technological development zones is a significant decision of the Party Central Committee and the State Council. It is a great pioneering undertaking for the reform, opening up, and the socialist modernization construction. It is a successful practice and an essential part of building socialism with Chinese characteristics. Through 20 years' pioneering efforts, the national economic and technological development zones have become export-oriented industrial zones with highly intensive land and modern manufacturers, as well as industrial concentration. They have fully played the roles as demonstration projects and diving force. At the same time there still remain such, problems as imbalance of the overall development and excessive pursuit of the scale and investment volumes of the zones. With a view to promoting the further development of the national economic and technological development zones, the opinions are given as follows:

1.

The Guidelines and Target for the Further Development of National economic and technological development zones

(1)

The guidelines for the further development of the economic and technological development zones at national level are: we should take the Deng Xiaoping Theory and the important thought of "Three Represents" as our guide, fully implement the concept of scientific development, adhere to the development policies of "focusing on improving the quality of foreign investments, developing modern manufacturing industries and optimizing the export structure, devoting to the development of high-tech industries and high value-added service industry as well as promoting the transformation of national economic and technological development zones into multi-functional comprehensive industrial zones", utilize foreign investments to propel domestic investments, enhance the capabilities of independent innovation, bring the roles of driving force into full play, promote the formation of several new economic growth points and make new contributions to the construction of a well-off society in an all round way.

(2)

The target of the development of national economic and technological development zones for the near future are: Great efforts should be made to turn the zone into a combination that can promote the domestic development and enlarge the opening up to outside world, to make it serve as links for the shift of high tech and high value-added processing and manufacturing of multi-national companies, and their research and development centers as well as their important service bases for undertaking the service out-sourcing business, and to make it become areas that attract high-tech industries, modern service industries and high-quality talents, an important backbone for economic restructuring and coordinated development of regional economies, and an important driving force in the process of urbanization and new industrialization of the areas where they are located, as well as the pioneers in the system restructuring, scientific and technological innovation and development of circulation economy.

(3)

At present, the national economic and technological development zones should grasp the follow points. Firstly, they should bear in mind and fully implement the concept of scientific development, make efforts to change the regime and mechanism as well as economic growth mode, and continuously improve the development level. The pace of shifting from the unitary development of manufacturing industry to the development of modern manufacturing industry and undertaking international services shall be accelerated, the emphasis shall be shifted from scale benefits to quality benefits and from the introduction of technologies to technological digestion and innovation, and the reliance shall be shifted from the policy advantages to the advantages of regime and comprehensive investment environment. Secondly, they should conscientiously submit themselves to the overall interests and macro-control of the state. They should pay more attention to the adjustment, optimization and upgrade of industrial structure, and place more emphasis on the introduction of new and high technologies, the technological development and innovation, and the quality and benefits of the development projects; and they should treasure even more the land and develop and utilize the land more rationally. Thirdly, they should constantly adhere to the regime innovation and enhance the capabilities of independent development. They shall distinguish themselves from the administrative areas of cities, constantly improve the management regime and operational mechanism to make them streamlined, flexible and highly efficient, and business-oriented and practical, optimize the overall environment for investment and make great efforts to provide a fair competition environment and good services for all kinds of market players in the zones.

2.

The Key Tasks of Improving the Development Level of National Economic and Technological Development Zones

(4)

Urgently investigating and formulating the Regulations on the Administration of National Economic and Technological Development Zones so as to ensure the sustainable development of the national economic and technological development zones. Each province, autonomous region or municipality directly under the Central Government may formulate local regulations and government rules applicable to the national economic and technological development zones within its administrative area.

(5)

Persisting in and improving the streamlined and highly efficient management system. Generally, an administrative institution of the national economic and technological development zones is an institution dispatched by the People's Government on the municipal level and above, with the exception of an institution with enterprise nature. It shall exercise the power authorized by the corresponding People's Government, such as administrative examination and approval, economic coordination and management upon authorization. In principle, a national economic and technological development zone may not be integrated into the local administrative area in the management nor cancel the organizational system of management committee.

(6)

Strictly complying with the overall planning for land utilization and the overall city planning in the development and construction of the zones. The development of national economic and technological development zone shall be brought into the overall planning for land utilization and the overall city planning, and carry out unified administration. If it meets the relevant requirements and it is really necessary to expand the planned area or adjust the location, the application and approval formalities shall be handled in accordance with the Principles and Procedures for the Examination and Approval of Expansion of National Economic and Technological Development Zones. The land for construction shall mainly be used for modern manufacturing industry, high and new technology industry and the service outsourcing industry. No one may illegally change the land use, nor use it for the purpose of large-scale retail business or real estate development. The compensation system for land expropriation shall be strictly implemented and earnest efforts shall be made to resettle the farmers whose land has been expropriated.

(7)

Following the basic state policies concerning reasonable utilization of the land and earnest protection of the cultivated land to utilize the land intensively and efficiently. The assessment of the economic growth and land utilization of the national economic and technological development zone shall be intensified, and a system shall be established for the assessment of the land utilization and implementation of the land planning. The annual plan for land utilization shall be strictly implemented. Examination and approval and supply of land shall be in line with the prescribed procedures. Where the conversion of agricultural land or the land expropriation is involved, which shall be reported to the State Council for approval, the national economic and technological development zone may apply for approval by itself on the basis of the utilization of land in batches by city, and shall report to the State Council for examination and approval after being approved through level-by-level examination by the local People's Governments at the county level and above. With regard to the construction project land that falls within the scope of the overall planning for land utilization, won't be used for other purposes and is in line with the state industrial policy, the relevant departments shall timely handle the relevant formalities according to law.

(8)

Continuing to give financial policy support to the national economic and technological development zones. Policy banks of the State and commercial banks should be encouraged to grant credits to the infrastructure projects and public utilities projects within the national economic and technological development zones where conditions permit, and to support the qualified enterprises within the national economic and technological development zones to expand their direct financing through the capital market.

(9)

Making great efforts to support the development of the national economic and technological development zones in the Central-Western Region. Policies on loan interest subsidies shall be implemented for the infrastructure projects of national economic and technological development zones, and the scale of loan interest subsidies should be properly expanded. The national economic and technological development zones in the old industrial bases in the Northeast region shall enjoy the same policies on loan interest subsidies. The special funds for the development of foreign trade in the Central-Western Regions and inter-government and international organizations' aiding funds may be used to support the development of the national economic and technological development zones in the old industrial bases in the Northeast region and Central-Western region.

(10)

Giving an impetus to the national economic and technological development zones to attract investments of transnational companies in a new round shift of international industries. Transnational companies should be encouraged to establish research and development centers, finance centers, technological service centers, training centers, purchase centers, logistics centers, operating centers and supporting bases in the national economic and technological development zones. The establishment of service institutions for start-ups and innovation parks for students returned from abroad should be encouraged for the purpose of attracting high- quality talents to start business in the zones. Close attention should be paid to studying the policies and measures for encouraging the national economic and technological development zones to undertake high added-value services and service outsourcing business, and the guarantee system for encouraging innovation should brought into perfection.

(11)

Promoting the development of modern logistics industry and the optimization and upgrade of processing trade. The qualified national economic and technological development zones should be encouraged to apply for establishing export processing zones, bonded logistics centers, export supervised warehouses and bonded warehouses. Support should be given to the national economic and technological development zones if the conditions are ripe for them to pioneer the cooperation with export processing zones, bonded zones and bonded logistics parks or zones so as to complement each other's advantages.

(12)

Perfecting the system for comprehensive evaluation of the investment environment of the national economic and technological development zones. The concentration of high and new technology industry, environmental protection and other indicators shall be added to the contents of evaluation, and the accreditation of regional environmental management standardization shall be set into action so as to effectively control the low-level projects that are both polluting and highly consumptive..

3.

Strengthening the Leadership over the National Economic and Technological Development Zones

(13)

The people's governments of all provinces, autonomous regions, municipalities directly under the Central Government, and the relevant departments of the State Council shall be fully aware of the importance of continuing to run well the national economic and technological development zones, take effective measures to further support the national economic and technological development zones in their system and mechanism innovation under the new situation, and create a good institutional environment and policy environment for their sound development.

(14)

The Ministry of Commerce shall, together with the Ministry of State Land and Resources, Ministry of Construction and other departments, intensify the macro-guidance to the work of national economic and technological development zones, help them to solve the difficulties and problems in course of their development, actively support them to take a new road to industrialization and accelerate their development into multi-functional comprehensive industrial zones.

(15)

Each national economic and technological development zone shall, pursuant to the present Opinions, formulate and implement a concrete implementation plan and, through its own efforts, speed up the realization of the development targets, bring into full play the roles of exemplary window and driver force, and try to maintain the competitive advantages among the similar industrial zones in the world.