Interpretation: Supporting Policies on the Promotion of Industrial Development within the Chaoyang Cluster in the International Business Services Area of China (Beijing) Pilot Free Trade Zone

Scope of application: Enterprises that are formally registered and taxed in Chaoyang District.

Implementation principle: National and municipal provisions shall prevail when both national/municipal supporting policies and the Measures hereby mentioned apply. The policies in the Measures and other policies at the district level shall be implemented according to the principle of "preferential treatment without duplication ".

I

Promoting High-quality Development of Headquarters-type Enterprises

Chaoyang District Commerce Bureau; Tel.: Bai Yang +86-10-65099102

1. Incentives for settlement and recognition: A reward of CNY 10 million may be granted to regional headquarters of multinational companies (including Asia-Pacific headquarters) which have been newly recognized by Beijing Municipality. A one-off reward of CNY 20 million may be granted to global headquarters of multinational companies which have been newly recognized by Beijing Municipality. Newly-relocated regional headquarters of multinational companies may enjoy a one-time incentive of up to CNY 10 million.

2. Incentives for outstanding contributions: Financial incentives may be given to the top 20 headquarters-type enterprises ranked by contributions to Chaoyang District in the previous year, up to a maximum of CNY 15 million. Financial incentives will be given to the top 20 headquarters-type enterprises ranked by the growth rate of contributions to Chaoyang District in the previous year, up to a maximum of CNY 5 million.

3. Subsidies for office space: Newly recognized or relocated regional headquarters of multinational companies that rent office buildings may receive a total subsidy of no more than CNY 15 million (equivalent to 50% of the current year's rent for three consecutive years). Subsidies for the expansion of rental space may be implemented with reference to the above criteria.

Promoting the Development of Business Services

Chaoyang District Commerce Bureau; Tel.: Bai Yang +86-10-65099102

4. Incentives for settlement: Newly established or relocated internationally renowned business service enterprises may receive a one-time financial incentive equivalent to 50% of the disposable financial resources of Chaoyang Distrcit, up to a maximum of CNY 5 million.

5. Subsidies for office space: Newly established or relocated internationally renowned business service enterprises may enjoy a total subsidy of no more than CNY 15 million (equivalent to 50% of the current year's rent for three consecutive years). Newly established or relocated international organizations, regional international organizations, and high-end think tanks capable of driving regional economic development and enhancing regional brand image may receive a total subsidy of up to CNY 6 million (Equivalent to 50% of the current year's rent for three consecutive years).

6. Incentives for contributions

(1) Incentives for contributions to industries. The top 10 enterprises as ranked by their contributions to Chaoyang Distrcit in the previous year and with higher growth rates than the average growth rate across the whole district will be rewarded with CNY 500,000. They must belong to one of the seven key business service areas: organizational management service, comprehensive management service, legal service, consultation and investigation, human resources service, advertising, conventions, and exhibitions.

(2) Incentives for contributions to operating revenue. For the operating revenue of a business service enterprise in the previous year reached CNY 100 million, and their growth rate was among the top 50, they will receive CNY 500,000 in financial incentives.

(3) Incentives for talents. The talents of enterprises who have made outstanding contributions to the development of business services in the region will be given financial rewards, and be recommended preferentially to participate in the appraisal and identification of the Phoenix Plan and International High-end Business Talents.

7. Convention and exhibition support

(1) Financial support may be given to international exhibitions (expositions) and international conferences that are hosted in Chaoyang District, as well as to organizers holding and participating in international exhibitions and economic and trade exchange activities overseas. The amount of support shall not exceed 50% of the organizer's event costs, up to a maximum of CNY 2 million.

(2) Financial support may be given to exhibitions (expositions), trade fairs, economic and trade forums, brand launch exhibitions, and exchange activities that match the future developmental of Chaoyang District. The amount of support shall not exceed 50% of the organizer's event costs, up to a maximum of CNY 2 million.

(3) A reward of CNY 1 million may be given to exhibition halls that attract world-renowned exhibitions to Chaoyang District in the previous year, and with a higher growth rate of business revenue than the average growth of the business service industry in the district.

8. Support for business service platforms: Financial incentives may be given to high-end think tanks as well as research and development institutions that have made important achievements in industrial policy research, theoretical research, and technical research and development, and have played an important role in promoting and serving the development of Chaoyang's business services. The amount of incentives shall not exceed 50% of the total project costs, up to a maximum of CNY 1 million. Financial support may be given to international, national, or cross-regional innovation platforms, and industrial integration and development promotion platforms with significant influence and contribution. The amount shall not exceed 50% of the total project costs, up to a maximum of CNY 1 million.

Promoting the Development of an Export-oriented Economy

Chaoyang District Commerce Bureau; Tel.: Bai Yang +86-10-65099102

9. Incentives for actual use of paid-in foreign investment: Financial incentives may be given to enterprises that actually used foreign investment of USD 50 million or more in the previous year and were included in the statistics by the Ministry of Commerce. Specifically, CNY 5 million may be granted for actually used amount of USD 1 billion or more, CNY 3 million for actually used amount from USD 500 million and above to USD 1 billion, CNY 2 million for actually used amount from USD 100 million and above toUSD 500 million, and CNY 1 million for actually used amount from USD 50 million and above to USD 100 million.

Promoting Consumption Upgrading and Development

Chaoyang District Commerce Bureau; Tel.: Bai Yang +86-10-65099102

10. Support for business district renewal: Eligible enterprises may be encouraged and supported to renovate business districts and special commercial areas for the sake of consumption upgrading and environment improvement. The total amount of support for a single project that is evaluated to be in line with the future industrial development of Chaoyang District shall not exceed CNY 30 million. Chaoyang District will support the transformation and upgrading of shopping malls with poor performance. The total amount of support for a single project that is evaluated to be in line with the future industrial development of the district shall not exceed CNY 15 million.

11. Support for consumption innovation: Activities to promote consumption may be ecouraged and supported with a financial support of not more than 50% of the actual expenses, up to a maximum of CNY 500,000. Development of late night streets and markets may be supported and projects that are evaluated to be in line with the future industrial development of Chaoyang District may receive financial support of not more than 50% of the actual investment, up to a maximum amount of CNY 5 million. Costs incurred in planning and layout studies, data monitoring, and publicity and promotional activities in the field of consumption may be charged to industry funds. Innovative pilot projects such as online and offline integration as well as artificial intelligence information consumption may receive one-time funding support of CNY 200,000. A one-time financial incentive of CNY 100,000 may be given to catering companies recognized for internationally-renowned rankings. Commercial entities may receive a reward of CNY 500,000 for successful introduction of debut stores of brands newly incorporated into the statistical declarationin the previous year, provided that the accumulated sales of these stores reached CNY 30 million.

12. Incentives for development of cross-border e-commerce: A one-time financial incentive of CNY 500,000 may be given to companies that open direct shopping experience stores and hold a space leasing contract for over one year in Chaoyang District, provided that an eligible store covers an area of 500 sqm and displays more than 500 SKUs.

Supporting the Development of the Financial Industry

Financial Services Office of Chaoyang District; Tel.: Wang Zhuoyong +86-10-65978750-822

13. For newly registered or relocated headquarters of financial institutions in Chaoyang District, a one-time settlement incentive of CNY 5 million may be given based on the amount of paid-in capital from CNY 100 million and above to CNY 500 million, CNY 10 million for the amount of paid-in capital from CNY 500 million and above to CNY 1 billion, CNY 20 million with the amount of paid-in capital from CNY 1 billion and above to CNY 3 billion, and CNY 50 million for paid-in capital of CNY 3 billion or more. An eligbile enterprise may receive a one-time settlement award of up to CNY 50 million.

  1. Newly registered or relocated headquarters of foreign-funded financial institutions in Chaoyang District, such as China-foreign jointly funded banks, foreign-invested banks, securities and insurance companies, as well as international rating agencies, may receive up to a maximum of CNY 50 million in subsidies.

14. For newly registered foreign reinsurance companies headquartered in Chaoyang District, a higher one-time subsidy for initial expenses may be granted, up to a maximum of CNY 100 million.

15. Financial holding (or group) companies in the Asia-Pacific or Greater China that have registered and established in Chaoyang District, hold two or more different types of recognized business headquarters of foreign financial institutions, and registered paid-in capital of CNY 5 billion or more may receive a one-time settlement incentive of CNY 10 million.

16. Independently taxable banking franchises newly registered, established, or relocated in Chaoyang District may, with the approval of China’s national financial regulatory authorities, receive a one-time settlement incentive of CNY 5 million.

  1. Professional subsidiaries of financial institutions that are newly registered, established, or newly relocated in Chaoyang District, as approved or filed by national financial regulatory authorities, may receive a one-time settlement incentive of CNY 1 million baed on the amount of paid-in capital from CNY 20 million and above to CNY 50 million, CNY 2 million for the paid-in capital of CNY 50 million or more. Those with paid-in capital of CNY 100 million or more may be given a one-time settlement incentive in accordance with the standards applied to headquarters of financial institutions.

17. Headquarters and first-level branches of financial institutions that are newly registered in or relocated to Chaoyang District and purchase office space in the district for self-use, may be subsidized at CNY 1,500 per square meter for an overall area of no more than 30,000 square meters. The subsidies will be paid out in equal amounts over three years, with an annual upper limit of CNY 15 million.

18. Subsidies for office space rents may apply to eligible headquarters and first-level branches of financial institutions, representative offices of foreign financial institutions, financial services institutions such as clearing centers, credit companies, and rating companies, and international accounting firms established with the approval of national financial regulatory authorities, as well as national financial think tanks recognized by financial regulators, industry associations, international financial organizations, and central departments. The subsidy may be granted in three consecutive years based on 50% of the acutal rents for office space, up to an annual maximum of CNY 10 millon for each of the eligible recipients. The above standards may apply to expanded rental space.

19. Chaoyang District will make services more accessible for overseas talents in terms of their entry and exit, visa, residence, and participation in social insurance in Beijing. It will promote the construction of key projects such as the Wangjing International Talent Community, international schools, international hospitals, and an international center for personnel exchanges. These projects will provide quality international services for overseas talents and comprehensively create an overseas-style environment for international talents to innovate, develop, and live in harmony.

20. Quality service resources will be integrated, such as medical care, education, and housing in the region, and service guarantees will be ensured by cooordinating matters for talents working in financial institutons in key areas such as talent attraction, work and residence permit application, medical services, and children's education.

Promoting the Development of Cultural Industry

Cultural Innovation Office of Chaoyang District and Management Committee of National Cultural Industry Innovation Experiment Zone; Tel.: Zhao Jianjie +86-10-65099230

21. Chaoyang District encourages cultural enterprises to explore overseas markets, carry out export of cultural products and services, and conduct overseas investment and other businesses. Certain incentives may be given to support the national key enterprises of cultural exports that

22. Certain incentives may be granted to encourage and support cultural enterprises and relevant institutions to create international copyright trade platforms as well as global-oriented platforms for the display, auction, and trading of cultural and artistic products.

23. Incentives may be given to support cultural and financial innovation services carried out by bank branches specilized in serving the cultural and creative sector, cultural securities, cultural industry-related insurance, and cultural enterprise equity transfer platforms.

Promoting the Development of High-tech Industries

Chaoyang District Bureau of Science Technology and Information Technology and Chaoyang Park of Zhongguancun National Innovation Demonstration Zone; Tel.: Li Jing +86-10-65099927 (Article 26); Duan Mei +86-10-64318200 (Articles 24-26)

24. Newly relocated enterprises with outstanding technological leadership, continuous innovation capabilities, considerable development scale, and favorable growth rate may receive office rental subsidies for three consecutive years, with an annual subsidy of up to CNY 5 million. Enterprises with exceptional development scale and economic benefits may receivean annual subsidy amount of up to CNY 10 million.

25. Enterprises recognized as Zhongguancun Golden Seed Enterprises, Zhongguancun Edge-Cutting Technology Enterprises, Zhongguancun Gazelle Enterprises, or listed for high-tech/high-growth rankings in the previous year may receive up to CNY 1 million in financial support.

26. Enterprises are supported in the commercialization and industrialization of game-changing technologies, key and core technologies, and major generic technologies, and may receive up to CNY 10 million in financial support.

VIII

Improving the Services for Talents and Their Influence

Organization Department of the CPC Chaoyang District Committee; Tel.: Tu Huijun +86-10-84409519 (Article 27); Liu Zhi +86-10-84409552 (Article 28)

27. The tiered and categorized "Phoenix Plan" will be implemented to identify and support high-level talents. Funding support of CNY 500,000 may be granted to leading talents urgently needed in such fields as science and technology, business, finance, culture, education, health, and social governance. Funding support of CNY 300,000 may be granted to top young talents.

28. The CBD International Talent One-stop Service Platform will be fully utilized to provide one-stop services in the request handling, consultation and policy inteepretation regarding permanent residence recommendations, identification of overseas Chinese individuals, filing of foreign investment, establishment of foreign-funded enterprises, and APEC Business Travel Cards, and promote the joint handling of work and residence permits for high-end foreign talents. Efforts will be made in promoting the construction of international talent communities according to high standards, as well as the building of infrastructure projects such as international talent apartments, international hospitals, international schools, and a permanent site of Future Forum.