Policies and regulations



Interim Measures of China (Zhejiang) Pilot Free Trade Zone on

Opening up Wider to the Outside World and Actively Utilizing Foreign Investment

I. General Provisions

In order to implement Notice of the State Council on issuing Several Measures for Opening Wider to the Outside World and Actively Using Foreign Capital(G.F[2015] No.5), Notice of the State Council on Issuing the Overall Program of China (Zhejiang) Pilot Free Trade Zone(G.F[2017] No.16), and policies of Zhejiang People’s Government on actively utilizing foreign capital, speed up the construction of China (Zhejiang) Pilot Free Trade Zone, participate in international competition and cooperation at high level, actively and effectively introduce foreign capital, advanced technology and high-end talents, enhance the comprehensive level of utilizing foreign capital, and build a high-quality foreign-capital gathering area, the following interim measures are developed now.

II. Scope of Application

(I) The Measures shall apply to foreign-funded enterprises that are registered in the China (Zhejiang) Pilot Free Trade Zone, excluding enterprises of Zhoushan that settled in China (Zhejiang) Pilot Free Trade Zone by removal. The Measures shall also apply to all types of overseas talents introduced by enterprises and institutions within the scope of the Free Trade Zone.

(II) The Measures shall apply to overseas investors (including Hong Kong, Macao and Taiwan) who invest enterprises or individuals in line with the national industrial policies in the form of wholly foreign ownership, equity participation, holding, joint venture, cooperation and merger and acquisition.

III. Supported Key Areas for Foreign Investment

(III) Focus on encouraging development industries. Encourage storage, transfer, trade, bond fuel oil and LNG supplying of bulk commodity with the core of whole oils industry chain; encourage foreign investors to invest in international marine service industry; encourage foreign investors to invest in green petrochemical, modern aviation, ship and marine engineering equipment, marine electronic information, marine biological engineering and other advanced manufacturing industry; encourage foreign investor make investment in strategic emerging industries and financial, health, marine tourism and other modern service industry.

(IV)Promote investment convenience. Implement national treatment before admission and the negative list management for foreign investment, and construct in-process and after-process regulatory system in line with the negative list management approach. Foreign investment projects (except for retained and verified domestic investment project stipulated by the council state) of foreign investment admission special management measures beyond the field of (negative list) and establishment and change of foreign investment enterprises implement registration system.  

IV. Preferential Measures for Introducing Foreign Incentives

(V) Introduce the world’s top 500 enterprises and headquarters economy. Encourage the world's top 500 multinational companies settle in the Pilot Free Trade Zone, and encourage the establishment of regional headquarters, research and development centers, sales centers, logistics centers, clearing centers, etc. Implement “one negotiation for one case” for the introduced world's top 500 multinational companies and the headquarters economy and the specific policies which they will enjoy shall be stated in investment agreements signed by both parties.

(VI) Introduce bulk commodity international trade enterprises with oil products as the core. Encourage foreign investors invest in bonded fuel oil, LNG supply and related supporting services, encourage foreign investors invest in oil international trade, logistics transfer, distribution, storage, processing and other industries. For enterprises with actual use of foreign investment of more than 10 million US dollars and annual import and export trade volume of more than 100 million US dollars shall be rewarded after identification according to the annual export increment. The maximum amount of rewarding shall be no more than RMB 5 million Yuan.

(VII) Introduce international marine service enterprises. Encourage foreign investors to invest in ship management, ship leasing, shipping brokers, crew services, cruise yachts, shipping insurance, shipping arbitration, marine loss administration, shipping transactions and other high-end shipping services. Enterprises with the actual use of foreign capital more than 5 million US dollars and engaged in substantive business operation, shall be given the corresponding one-time award after identification, and the maximum amount of incentives shall be no more than RMB 500 million Yuan. Enterprises with the existing foreign-funded enterprises to increase capital and the actual use of foreign capital of more than 5 million US dollars shall be given one-time award compared to the newly introduced enterprises.

(VIII) Introduce green petrochemical production enterprises. Encourage foreign investors to participate in the construction and operation of petrochemical bases with resources, capital, technology and market, encourage world-class petrochemical enterprises and enterprises along the oil-rich countries along the Belt and Road to participate in investment and construction, improve the upstream and downstream integration industry chain, and accelerate the formation of world-class petrochemical industry cluster. The introduced major green petrochemical production enterprises and projects shall implement “one enterprise one policy”, facilitate oil processing enterprises meeting conditions in access to crude oil import qualification, quota and the right to use and so on, and facilitate the export of petroleum products.

(IX) Introduce marine advanced equipment manufacturing enterprises. Encourage foreign investment in Zhoushan Aviation Industrial Park, promote general-purpose planes assembly, spare parts manufacturing and maintenance, R & D design, logistics and distribution and other supporting industry agglomeration; encourage foreign investment in special ship building and maintenance, marine engineering equipment manufacturing, port machinery equipment manufacturing, marine new energy equipment manufacturing and other advanced equipment industries. Foreign investment in aviation industry projects and advanced equipment industry projects shall be supported according to Opinions on promotion of “Chinese manufacture 2015” and further development and expansion of the industrial economy issued by the municipal government.

(X) Introduce modern service enterprises. Encourage foreign investment in banking financial institutions, securities companies, fund management companies, futures companies, insurance agencies, financial leasing, commercial factoring and other financial services. Encourage foreign investment in health care, marine tourism and other modern services. Enterprises with the actual use of foreign capital in more than 10 million US dollars and engaged in substantive business operations, shall be given the corresponding one-time award after identification; foreign individuals or enterprises investing Zhoushan enterprises with no less than 10 million US dollars, shall be given corresponding reward of total financing amount after identification. The maximum amount of bonus shall be no more than RMB 5 million Yuan.

V. Preferential Measures for Recruiting Talents

(XI) Increase the intensity of talent introduction. The introduction of overseas high-level talents to Pilot Free Trade Zone shall be awarded no more than RMB 2 million Yuan maximally after identification. Implement “overseas engineers” introduction policy, the employers shall be given no more than RMB 500,000 Yuan per person per year as annual salary subsidies. Explore the implementation of government employees, and specially invited experts and other mechanisms to vigorously introduce construction professionals for Pilot Free Trade Zone, and increase the introduction of much-needed oil and petrochemical, aerospace, commodity trading and other professionals with market-oriented mechanisms.

(XII) Increase talents entrepreneurship innovation support. Encourage entrepreneurs to gather in Pilot Free Trade Zone, and reward entrepreneurial talents who meet the conditions with the highest amount of RMB 30 million Yuan as venture funding. Establish the scientific innovation funds with the total amount of no less than RMB 100 million Yuan and the unsecured credit loans with the total amount of no less than RMB 100 million Yuan, and give entrepreneurs loan discount equal to RMB 500,000Yuan in total. Optimize the process of foreign entrepreneurs in industrial and commercial registration, project reporting and other aspects, and allow qualified foreigners to create Chinese-funded enterprises in Pilot Free Trade Zone. Establish Scientific Pilot Free Trade Zone Special Project in major scientific and technological projects, and give priority and support to talents in oil and petrochemical, aerospace and other key areas. Explore to construct overseas talent offshore innovation base of Pilot Free Trade Zone, and support overseas talent to set up start-up enterprises of offshore research and development, trade and finance.

(XIII) Relax the access conditions for foreign talent employment. Further relax the employment objects, the fields and the requirements, and appropriately relax employment age, education, work experience and other restrictions of much-needed foreign skilled talent, technical talent and management talent in petroleum and petrochemical, aerospace and other industries in Pilot Free Trade Zone. Foreign students who have obtained master's degree or above and have been employed in Pilot Free Trade Zone apply directly for foreigners employment procedures and working-type residence permit. Try to execute t reception and conduction in one window and registration and conduction in one window for “Work permits for foreigner in China” and “Residence permit for foreigners”

(XIV) Optimize the residence of foreign talents. High-level foreigners who meet the recognized standards and their spouses and minor children, as well as foreign Chinese who meet the requirements of education, work experience and residence, are eligible for permanent residence in China. The foreign talents who meet the requirements of the wage income, tax payment, investment and the corresponding residence time limit may apply for permanent residence in China after recommended by the work unit and their spouses and minor children may apply along with them. Foreigners who have applied for a successive working-type residence permit and have no illegal activities may issue a residence permit with a validity period of 5 years or less. Foreign students who are engaged in innovation, start-up and graduation practice, and foreign household service personnel employed by foreign talents may apply for a residence permit for private affairs. Simplify the application of permanent residence procedures for foreign high-level personnel in Pilot Free Trade Zone, shorten the time limit for approval and verification and smooth the transition from employment residence to permanent residence.

(XV) Optimize the immigration service for foreign talents. Authorize visa rights of Zhoushan Mount Putuo airport, explore the implementation of 144 hours (6 days) transit visa-free for professionals of petroleum and petrochemical, aerospace industry. Those who have been certified or proved by other invited units as foreign high-level personnel may apply for R visa (talent visa); those talents holding other visas can apply for change to R visa. For foreign technical personnel and senior management personnel selected by companies, if they have obtained a work permit certificate, they may apply for Z visa (work visa); those who haven't applied for work permit can apply for an R visa to come to China by the invitation letter issued by companies. Foreigners who plan to invest or innovate are eligible to apply for S2 visa ( visa for private affairs) by proof of investment or business plan, proof of source of life, etc. Establish regional enterprises personnel visa window, and build fixed-staff contact system to provide convenient services for entry, transit, and stay in China of foreign talents who meet conditions.

(XVI) Increase talent tax incentives. Execute tax incentives for qualified high-level personnel in Pilot Free Trade Zone. 100% of the personal income tax retained part shall be returned in the first three years, and 50% shall be returned in the latter two years; the personal income tax incentives of talents of particular importance in petroleum and petrochemical, aerospace and other areas shall implement “one negotiation for one case”.

(XVII) Improve the comprehensive services of talents. Innovative talents identification methods execute the combination of identification of talents competent departments, identification of the market, and identification of the list. The eligible foreigners in the Pilot Free Trade Zone shall enjoy the treatment of local citizens in their children's education, support the construction of international schools or set up international classes to facilitate the attendance of foreign children in local primary and secondary schools or attendance of international schools. Explore the establishment of an international medical center, open an unlimited appointment of medical experts, priority visits and other medical green channel, and support Zhoushan Hospital and other medical institutions strengthen cooperation with domestic and foreign insurance companies for providing foreign talent with commercial medical insurance direct settlement. Allow qualified foreigners to apply for the public card and Chinese-funded bank cards, and allow them to enjoy the relevant treatment of the public card and deal with deposits and loans business. Support the high-level talents in Pilot Free Trade Zone who meet the conditions, give preferential policies to improve the high proportion of housing accumulation funds loans, provide specialized support to participate in enterprise annuity, and further optimize the payment, withdraw and switch over services of social security funds and housing accumulation funds. Build high-level personnel service alliance, and promote the establishment of specialized agencies and platforms for one-stop service employment, start-up and home life of foreign talents.

VI. Foreign-funded Services and Security

(XVIII) Innovate the service mechanism of foreign-funded enterprises. Deepen the reform of the commercial system, implement “one window acceptance and integration service” mode for the administrative examination and approval of foreign investment projects, execute the mechanism of “going through formalities in one time” of the foreign-funded enterprises in  governmental organizations, and provide precise service to “favor the merchants, comfort the merchants and enrich the merchants”.

(XIX) Establish a joint meeting system for major foreign investment projects. According to the negotiation, construction and operation of foreign-funded projects, hold joint meetings from time to time to solve the difficulties and problems encountered by foreign-invested enterprises in a timely manner.

(XX) Establish foreign preferential policies cashing system. The preferential policies in Pilot Free Trade Zone shall be enjoyed in accordance with the principle of giving priority to higher amount, not being repeated and the total amount of incentives not exceeding the actual contribution to local finance. The application shall be submitted by enterprises to the local government (district) government and the functional district administrative committee for initial examination, and after the examination and approval by the Administrative Committee of Pilot Free Trade Zone, the same level of finance shall be honored in advance, and then the amount shall be borne according to the tax division of current financial management system separately.

The Measures shall come into force as of the date of promulgation. In case of higher-level policy adjustments, the opinions of higher-level policy shall prevail.