Interpretation: Notice of Issuing Policies on Promoting High Quality Development of Daxing Cluster of the High-end Industrial Area in the China (Beijing) Pilot Free Trade Zone (Trial)

Scope of application: The policies apply to enterprises that are registered and taxed within the Cluster while promising not to leave the location of registration, change their tax duties, or reduce their registered capital in a period of 10 years.

Implementation principle: Application for the financial support starts on January 1 each year, and the review is based on the applicant's comprehensive contribution to the region in the previous year. National and municipal provisions shall prevail for applicants eligible for both national/municipal support and support stipulated in the Notice. Applicants may be eligible for the most favorable but only one of the applicable policies in this Notice and other policies released by the district. The annual funds that an enterprise may receive shall not exceed its total contribution to the region for that year. The policies come into effects from the date of issuance, with a trial period of one year. Adjustments may be made in accordance with any applicable changes to relevant policies by the State, Beijing Municipality or Daxing District.

Policy on Talent Introduction
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Support for Leading Talents and Team

1. For renowned scientists, senior executives from Fortune Global 500 companies, listed companies at home and abroad, unicorn companies and investment institutions, and other industrial talents, those who are recognized for innovations and business start-ups in the China (Beijing) Free Trade Zone may be awarded the title of "New Country Gate" leading talent, with an individual reward up to CNY 2 million. Enterprises that have introduced 5 or more talents recognized as "New Country Gate" leading talents in three consecutive 3 years may receive an incentive of CNY 1 million.

2. Three-year premise rental subsidies may be provided, to cover 50 percent of the actual premise rental cost, up to an annual maximum of CNY 1 million. Three-year loan interest subsidies may be provided, to cover 50 percent of the annual interest calculated based on the benchmark interest rate, up to an annual maximum of CNY 2 million. Rewards for development may be given pursuant to notable contribution to regional economic development, with up to CNY 100 million in equity investment for selected excellent projects.

3. Individuals included into the national/municipal talent introduction program may be supported with rewards equivalent to the municipal incentives. Enterprises that lead national and municipal-level projects relating to scientific research, cultural creativity, and improvement and application of key skills may receive a support fund equivalent to the municipal support, up to CNY 10 million. Individual rewards for development may be given pursuant to their contribution to the social and economic development in the area.

4. Eligible core team members may apply for work and residence permits. Newly introduced high-quality professionals in such areas as engineering technology, finance, international trade, intellectual property and skills, as well as postgraduates, doctors and postdocs from world-famous universities may receive an annual living allowance of CNY 30,000 for a period of 3 years. Training subsidies may be provided to selected exemplary projects that leading talents and core team members participate in for technical training and learning, with an annual maximum of CNY 50,000 for each individual.

5. Employers of the leading talents in the Cluster who obtain valid invention patent assignments or licenses from universities and research institutes may receive subsidies for service inventions. For transferred patents, a subsidy may be granted for each patent with no more than CNY 500,000 (not exceeding 5 percent of the assignment cost). For licensed patents that have been industrialized, a subsidy may be granted for each product with no more than CNY 500,000 (not exceeding 5 percent of the actual sales volume in the following year after the launch of the relevant product).

6. Selected exemplary activities with notable influence hosted or organized by employers of leading talents in the Cluster such as high-end, precision and sophisticated technology forums, exhibitions, roadshow promotions, and entrepreneurship competitions, may be provided with a subsidy of up to CNY 1 million (a one-time subsidy equivalent to 50 percent of the actual activity cost).

7. Innovation platforms built by the employers of leading talents, once recognized by national or municipal authorities, may receive a one-time incentive of up to CNY 10 million. Innovation platforms that win national or municipal awards for technology achievement and have also been commercialized in the area may receive a subsidy of up to CNY 10 million.

8. "Talents Seeking" Award for market-oriented talent introduction. Human resource service professional institutions at home and abroad or leading talents in the Cluster may be rewarded with an annual incentive of up to CNY 2 million for successfully introducing more talents to work stably in the Cluster and to be recognized as leading talents.

Introduction and Cultivation of Excellent Young Talents

9. Talent Scout Award: Employer enterprises that introduce domestic and international doctoral students as well as postdocs after supervised training to work in important positions may receive a reward of CNY 50,000 for each of them.

10. Growth & Progress Award: Employer enterprises may receive a reward of CNY 100,000 for each of the excellent young talents who win talent technology commendation and technology awards at the provincial/ministerial level and above, or lead major scientific research projects at the provincial/ministerial level and above (reward may be duplicated for the same talent who wins multiple awards). Excellent young talents receiving work-related senior professional titles or qualification certificates may be given a reward of up to CNY 20,000.

11. Project to fund excellent young talents: Funding support shall be provided annually to projects by individual young talents (not more than 15 projects) with CNY 30,000 to CNY 100,000 for each, to top projects by individual young talents (not more than 5 projects) with CNY 200,000 to CNY 800,000 for each, and to projects by teams (not more than 5 projects) with CNY 100,000 to CNY 500,000 for each..

12. Excellent young talents may be subsidized for their scientific research projects, cooperation in cultural creativity, and improvement of key skills, equivalent to 50 percent of the total contracted amount, up to maximum of CNY 300,000.

13. A subsidy of CNY 50,000 may be granted annually to selected excellent projects organized by excellent young talents, i.e. national and international industry forums, seminars and exchanges.

High-level Talent Services

14. High-level talents and their family members who have no property rights housing in Daxing District and Beijing Economic-Technological Development Area, and have not benefited from housing assurance policies may rent a unit of public talent housing free of charge. High-level talents may be subsidized up to CNY 10 million for purchase of commodity housing in Daxing District provided that all relevant requirements and conditions are met.

15. For children of high-level talents to attend government-sponsored schools in the Cluster, the district education committee shall arrange their enrollment based upon the situation and relevant policies. For children of high-level talents to attend any kindergartens, primary schools, or secondary schools that are privately owned or outside the Cluster, the district education committee shall assist in contacting the kindergartens or schools for their enrollment.

16. Assistance shall be provided to high-level talents who are not Beijing residents in applying for their work and residence permits.

Support for Industrial Development
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Support to High-end, Precision and Sophisticated Industries

17. Enterprises in high-end, precision and sophisticated industries may receive a financial support equivalent to 40 percent of their comprehensive contribution to the regional economy in the previous year, provided that they are newly registered in the Cluster and contributed a total of CNY 10 million to the region in any given year within three years after their registration (for three consecutive years from the year of receiving the support).

18. Enterprises in high-end, precision and sophisticated  industries may receive a financial support equivalent to 50 percent of the premise rental in the previous year for production or office space with an area of 500 square meters or more rented in recognized innovation centers, accelerators, incubators, and standard plants in the Cluster (no more than 3 years).

19. Enterprises in high-end, precision and sophisticated industries with a comprehensive contribution of CNY 10 million and above to the regional economy in the previous year along with an annual growth rate of 20% and above may be provided with financial support equivalent to 50 percent of the incremental contribution to the region, up to an annual maximum of CNY 5 million.

20. Enterprises in high-end, precision and sophisticated industries which for the first time obtain qualifications as key laboratories, engineering research centers, industrial innovation centers, industrial design centers, corporate technology centers and industrial design centers may receive a one-time financial support of CNY 2 million for qualifications at the national level and CNY 1 million for qualifications at the municipal level.

21. Enterprises in high-end, precision and sophisticated industries may receive a district financial support equivalent to 100 percent of the national and municipal support.

22. Enterprises in high-end, precision and sophisticated industries with loans or financial lease projects worth 3 million and above in the previous year may, in accordance with the benchmark interest rate of the loan in the same period, be granted an annual subsidy of up to CNY 5 million (no more than 3 years).

Support for Innovation and Achievement Commercialization of the Pharmaceutical Industry

23. Enterprises in high-end, precision and sophisticated industries which have obtained certificates and production approval for new drugs or medical devices (only Class III medical devices) may receive a one-time funding support equivalent to 40 percent of their actual R&D investment in the free trade zone over the recent five years, up to a maximum of CNY 10 million.

24. Enterprises in high-end, precision and sophisticated industries which have had drugs and medical devices (only Class III medical devices) directly registered and recognized by the U.S. Food and Drug Administration (FDA), European Medicines Agency (EMEA), European Union Quality Steering Committee (EDQM), Japanese Medicines and Medical Device Administration (PMDA), or the International Pharmaceutical Certification Cooperation Organization (PIC/S), may receive a one-time funding support equivalent up to 30 percent of their actual expenses, with no more than CNY 5 million for drug enterprises and no more than CNY 2 million for medical device (Class III medical devices only) enterprises.

25. Enterprises in high-end, prevision and sophisticated industries may receive a one-time financial support of CNY 2million, 5 million or 10 million for the a single variety of products with an annual sales amounting to CNY 500 million, 1 billion or 2 billion respectively.

Support for Introduction and Development of Financial Institutions

26. Newly established or relocated legal person financial institutions which are registered in the Cluster and aligned with the  strategic positioning as "four centers" may receive a  one-time special funding. In accordance with the scale of paid-in capital, a subsidy of CNY 5 million may be provided for a paid-in amount from CNY 100 million to 500 million, CNY 10 million for CNY 500 million to 1 billion, CNY 20 million for CNY 1 billion to  3 billion, and CNY 50 million for CNY 3 billion and above. Financial institutions may receive a one-time special funding of CNY 10 million for incremental paid-in registered capital of CNY 1 billion and above.

27. One-time funding may be given to first-level branches of licensed financial institutions which are registered in the Cluster and have been newly established and relocated with the approval of the national financial supervision department. In accordance with the scale of paid-in capital, a subsidy of CNY 5 million may be provided for paid-in amount of CNY 100 million to 500 million, CNY 10 million for CNY 500 million to 1 billion, CNY 20 million for CNY 1 billion to CNY 3 billion, and CNY 50 million for CNY 3 billion and above. Financial institution may receive a one-time special funding of CNY 10 million for incremental paid-in registered capital of CNY 1 billion and above.

Support for Introduction and Development of Internet Enterprises

28. Leading enterprises in the Internet industry which generate CNY 1 billion and above in operating revenue within three years after their registration in the Cluster may receive a one-time special funding of CNY 10 million.

29. Backbone enterprises in the internet industry, residing in the free trade zone, which have either generated an annual operating revenue of CNY 60 million and above, or obtained round B financing or above and receiving no less than CNY 200 million in actual financing may be provided with the following support:

1) In terms of operating revenue, enterprises with an annual growth of 10 percent or more in the recent three years may receive a one-time office purchase subsidy of CNY 2000 per square meter, up to CNY 10 million. Enterprises that rent office buildings may receive a subsidy of no more than 30 percent of the total rent cost in the previous year, up to CNY 5 million accumulatively over three consecutive years.

2) Enterprises with round B financing and above may receive a subsidy of no more than 50 percent of the actual payment, up to a maximum of CNY 5 million.

3) Internet unicorn enterprises, which have been established for less than 10 years, estimated to be worth over 1 billion dollars, received private equity investments but have not been publicly listed, may receive a loan interest subsidy, of an annual maximum of CNY 5 million for three consecutive years, based on 50 percent of the loan benchmark interest for the same period of the lending banks.

30. Enterprises that build Internet public technology service platforms and application platforms may receive a one-time special funding support equivalent to 20 percent of the actual investment in platform establishment, up to CNY 3 million.

Support for International Operating Capacity of Foreign Trade Enterprises

31. Projects that meet the requirements and cost CNY 10,000 and above may receive subsidy support. A subsidy equivalent to 50 percent of the approved support amount by the municipal authority may be granted to eligible applicants participating in international exhibitions as well as other international business development events, or equivalent to 50 percent of the booth costs for participation in domestic exhibitions. Each enterprise may receive not more than twice the supporting fund annually for improving international operating capacity, up to a maximum of CNY 300,000 (funding standards may be subject to adjustments based on the district's financial situation in case that the actual capital demand exceeds the subsidy amount).

32. Eligible enterprise may receive incentives equivalent to 50% of the approved municipal funds for organizing activities such as international industry annual conferences or industry development forums with over 200 attendees during the exhibitions. This policy also applies to activities that promote industrial new technologies, products, and release of industrial development reports during such events.

33. Eligible enterprises may receive incentives equivalent to 50 percent of the approved municipal funds for organizing exhibitions where international exhibitors (including exhibitors from Taiwan, Hong Kong SAR and Macao SAR as well as foreign investment enterprises and joint ventures) rent more than 30 percent of the total exhibition space.

Support for Enterprises Entering the Multi-level Capital Market

34. For enterprises to be listed on the domestic A-share main board,  an incentive of CNY 1 million may be granted to those that have been restructured and filed for pre-listing tutoring, or CNY 1.2 million to those that have completed the pre-listing tutoring with their IPO applications accepted by the security issuance authority, or CNY 7.8 million to those that have been successfully listed after their IPO applications are examined and approved. For enterprises to be listed on the small and medium-sized board, an incentive of CNY 1 million may be granted to those that have been restructured and filed for pre-listing tutoring, or CNY 1.2 million to those that have completed the pre-listing tutoring with their IPO applications accepted by the security issuance authority, or CNY 5.8 million to those that have been successfully listed after their IPO applications are examined and approved.

35. Listed enterprises on the main board, small and medium-sized board, and ChiNext that are registered outside the Cluster, reported a profit for three consecutive years and relocated their registration and taxation address to the Cluster may receive incentives of CNY 10 million, CNY 8 million and CNY 6 million respectively. Listed enterprises on major overseas stock exchanges outside the Cluster that relocate their registration and taxation address to the Cluster may receive incentives in accordance with the aforementioned standards.