Laws of the People's Republic of China

These Measures, formulated in order to encourage Overseas Chinese and Hong Kong and Macao compatriots to invest in Guangzhou Municipality in accordance with the requirements of municipal economic construction and social development plans,stipulate preferential terms which shall be awarded to parties which invest in Guangzhou Municipality in a sole investment operation, a joint equity or co-operative venture with a State or collective enterprise, or in any other form of investment authorised in China:

(1) Land use fees for enterprises invested in by an Overseas Chinese, Hong Kong or Macao compatriot in Guangzhou Municipality shall be levied at the discounted rate of 80%.

(2) The proportion of domestic sales of products manufactured by an enterprise invested in by an Overseas Chinese, Hong Kong or Macao compatriot shall be increased to the greatest possible extent, provided the enterprise's foreign exchange income and expenditure balance is not affected.

(3) Where an Overseas Chinese or a Hong Kong or Macao compatriot has made an important contribution to the economic and cultural development of Guangzhou Municipality, one of a variety of honorary titles, certificates of merit or citations may be issued, subject to recommendation by a municipal, regional or county United Front Department or Overseas Chinese Affairs Department and approval by an equal level People's Government. If a particularly outstanding contribution is made, the party concerned may be honoured with a monument or the title of "Honorary Citizen of Guangzhou Municipality", subject to the approval of the Guangzhou Municipal People's Congress or the Guangzhou Municipal People's Government.

(4) Where an Overseas Chinese or a Hong Kong or Macao compatriot imports advanced technology and invests in a project urgently required in Guangzhou Municipality, or in the technological renovation of an old enterprise or in the operation of a development industry, and the actual investment at on time is US$300,000 (US$200,000 for the eight municipally administered counties), one of the investor's relatives or friends who holds rural household registration shall be permitted to change this status to urban or township household registration at the place where the enterprise is to be located, and shall be entitled to purchasing rights for commodity cereal food supplies. Where the actual amount of investment at one time is US$600, 000 (US$400,000 for the eight municipally administered counties), two of the investor's relatives or friends who hold rural household registration shall be permitted to change their status to urban or township household registration at the place where the enterprise is to be located, and shall be entitled to purchasing rights for commodity cereal food supplies. Change of status requests shall be limited to two persons per project.

Where the actual amount of investment at one time in a non-production type project in Guangzhou Municipality by an Overseas Chinese or a Hong Kong or Macao compatriot is US$600,000 (US$400, 000 for the eight municipally administered counties), one of the investor's relatives or friends holding rural household registration shall be permitted to change this status to urban or township household registration shall be permitted to change this status to urban of township household registration at the place where the enterprise is to be located, and shall be entitled to purchasing rights for commodity cereal food supplies. Where the actual amount of investment at one time is US$1,200,000 (US$800,000 for the eight municipally administered counties), two relatives or friends holding rural household registration shall be permitted to change their status to urban or township household registration at the place where the enterprise is to be located,and shall be entitled to purchasing rights for commodity cereal food supplies. Change of status requests shall be limited to two persons per project.

An application for a transfer from rural household registration to household registration in Guangzhou Municipality shall be submitted to the Guangzhou Municipal People's Government for examination and approval. An application for a transfer from rural household registration to county town or market township household registration shall be subject to examination and approval by a county people's government. A verified certificate of the actual amount of investment shall be presented at the time of examination.

(5) An Overseas Chinese, Hong Kong or Macao investor may conduct priority recruitment of between one and three of his relatives or friends, provided the requirements of the labour management rules of Guangzhou Municipality and of recruitment conditions for a joint equity or co-operative enterprise are met.

(6) An Overseas Chinese, Hong Kong or Macao investor may engage a relative or friend who is resident in China to act as his representative or agent. The agency relationship shall be authorised in writing and then notarised. If the person engaged as a representative or agent is a State cadre or worker from Guangzhou Municipality, procedures for leave without pay shall be carried out with the relevant organising body and the personnel and labour departments. in accordance with the relevant regulations concerning leave without pay within the administrative framework for cadres and workers. Such representatives or agents shall not be classified within the sphere of exported labour service.

(7) A returned Overseas Chinese, or a relative of an Overseas Chinese or a Hong Kong or Macao compatriot, who has made a contribution through recommending an Overseas Chinese or Hong Kong or Macao investor to Guangzhou Municipality shall, in the case of a joint equity or co-operative enterprise, be issued with a lump sum bonus by the Chinese party to the venture and, in the case of a sole investment enterprise, a bonus shall be issued by the Chinese negotiating party. Bonuses shall be issued at different rates in accordance with the actual amount of investment: 0.1% of the actual amount of investment for an amount of not more than RMB 1,000, 000 yuan, and 0.05% of the amount in excess of RMB 1,000,000 yuan if investment is over RMB 1,000,000 yuan. The amount of a bonus for one project shall be limited, however, to RMB 10,000 yuan. A bonus of RMB 5,000 yuan or less shall be examined and approved by the regional, county or bureau level authority. A bonus of more than RMB 5,000 yuan shall be examined and approved by the Guangzhou Municipal People's Government. A bonus shall be issued within 6 months of the actual investment of capital. In addition to a bonus, the municipal, regional or county people's government may, depending on the circumstances, provide a moral incentive such as a certificate of merit.

(8) Where advanced scientific and technological knowhow, commodity samples, superior strains of seeds for agricultural use, information etc. are provided by an Overseas Chinese, a Hong Kong or Macao compatriot, a returned Overseas Chinese, or a relative of an Overseas Chinese or a Hong Kong or Macao compatriot, and where significant benefits to production are confirmed by the relevant regional county, bureau or municipal department, following appraisal of the product in use, a certificate of merit or a citation as well as a lump sum bonus of between RMB 100 and 5,000 yuan, depending upon the extent of the benefit, shall be issued by the user unit. A larger bonus may be issued for individual items of specific importance, subject to approval by the Guangzhou Municipal People's Government.

(9) A returned Overseas Chinese, a relative of an Overseas Chinese or a Hong Kong or Macao compatriot, who has made a contribution by introducing foreign investment and requests to travel or visit family in Hong Kong, Macao or abroad in order to further develop foreign trade activities, may, following a recommendation by a regional, county or bureau authority and additional attestation by the municipal United Front and Overseas Chinese Affairs Departments,be issued with priority approval by the public security department.

(10) Advanced technological equipment for use in production and valued at less than RMB 20,000 yuan, which is presented by an Overseas Chinese or a Hong Kong or Macao compatriot to a relative for his own use shall be exempt from duty, subject to approval in accordance with relevant provincial regulations.

(11) These Provisional Measures shall also apply to Taiwanese compatriots investing in Guangzhou Municipality.

(12) The municipal Overseas Chinese Affairs Office shall be responsible for the interpretation of these Provisional Measures. The United Front and Overseas Chinese Affairs Departments at the various levels shall be responsible for promoting the implementation of these Provisional Measures.

(13) Where these Provisional Measures conflict with Central Government measures for the preferential treatment of investment by Overseas Chinese, the relevant provisions of the Central Government measures shall prevail.