People's governments of all towns, local areas and sub-district offices, commissions, offices and bureaus of the district government, and district-affiliated organizations,

The Methods of Shunyi District of Providing Oriented Support for Major Industrial Projects is hereby issued for your implementation in view of the local conditions.

Shunyi District People's Government of Beijing Municipality

December 4, 2019

(For Public Release)

Methods of Shunyi District of Providing Oriented Support for Major Industrial Projects

Chapter I General Provisions

Article 1  The Methods is formulated in view of the actual situation of Shunyi District and for the following purposes: (1) Promote industrial transformation and upgrade and improve industrial quality and efficiency across the district; (2) Speed up the establishment of economic structure with high-grade, high-precision and advanced industries; (3) Build a demonstration zone that contains innovative industrial clusters with international competitiveness; (4) Converge a batch of high-grade, high-precision and advanced projects with high technological content, good overall benefits and major influence on the district's future development; (5) Continuously advance the translation and commercialization of sci-tech results; (6) Achieve high-quality development.

Article 2   The Methods complies with the following principles:

1. Scientific positioning: Based on new functional positioning of capital city and the overall plan for coordinated development of Beijing-Tianjin-Hebei, the Methods takes Beijing's catalogue of prohibited and restricted new industries into account, and aims to enlarge the scale of high-grade, high-precision and advanced industries, strengthen the high-end links of traditionally advantageous industries, and foster a high-grade, high-precision and advanced economic structure.

2. Merit-based selection: The district will introduce competitive mechanism to select the best industries from a large pool of candidates and concentrate resources on supporting them.

3. Early-stage subsidy: On the basis of post-project subsidy, subsidies shall also be provided before and during the project implementation when capital is most needed before its operation.

4. Government stimulation and guidance: Enterprises shall play the main role under government guidance. The driving, stimulating and leverage effect of financial fund shall be maximized, and the market's decisive role in resource allocation shall be brought into full play to steer social investment into major industries of the district.

5. Emphasis on performance: New mechanisms of capital allocation will be created to link fund allocation and use with project performance and management to make sure the fund will generate optimal results.

Chapter II Scope and Standards of Support

Article 3 The supported projects shall meet the following requirements:

1. The projects shall accord to the district's plan to foster the "3+4+1" new industrial landscape. This includes the three innovative industrial clusters of intelligent new energy vehicle (NEV), third-generation semiconductor and aviation and aerospace; the four modern service sectors of airport economy, industrial finance, business conference and exhibition, and cultural creativity and tourism; new-generation IT, smart device, medical health, and other high-grade, high-precision and advanced sectors. The projects shall also be conductive to forming the intelligent manufacturing system.

2. Projects newly arriving in the district are prioritized in the grant of subsidies. This also applies to enterprises which also own land, plants and buildings, and has transformed or upgraded their projects to introduce high-grade, high-precision and advanced ones.

3. All properties of the project(not less than 100% of total area) shall be possessed by the project owner (not for lease or sale) and used for entity operation.

4. Industrial and commercial registration, tax registration, tax payment, statistics and ownership holder of the project subject shall all be in Shunyi District.

Article 4 There are three categories of support standards: For land (including newly requisitioned land and self-owned land), for the purchase of plants or buildings, and for the lease of plants or buildings. Projects meeting the following standards for average annual indicators are entitled to the supportive policies within the validity term of this Methods.

Note: "Actual investment" includes actual input such as land, buildings, plants and equipment; "output" means industrial output value or sales revenue.

Article 5 This Methods applies to state-level or world-renowned key labs, technology centers, innovation centers, and platforms for transforming scientific and technological achievements, which, however, shall not be subject to the input/output thresholds. Their eligibility for the support stated herein shall be based on the comprehensive assessment of their technological innovation capability, R&D input, and level of technology transforming and industrialization.

Article 6 This Methods doesn't apply to agricultural projects, real estate projects, industrial park projects, or other projects already acquiring the sales permit.

Chapter III Supportive Measures

Article 7 Support for land-requiring projects.

1. Subsidy for fixed asset investment: After an industrial project completes the above-ground structures according to the construction permit and registers the completion, it will be subsidized at the rate of RMB2,000/construction square meter based on a comprehensive assessment conducted in accordance with this Methods. If the total completed areas include residential areas, employees' apartments and underground space, this part shall not be entitled to subsidy and shall be deducted from the subsidized area proportionally. If the industrial project is engaged in manufacturing, it will be subsidized with 30% of the investment in the production line and R&D equipment.

2. After the project is completed and accepted or the production equipment is all installed, 30% of the total subsidy will be provided. After the project is commercialized, another 30% will be provided. If the project meets the standards stated herein within three years of obtaining the construction permit, the rest 40% will be provided.

3. The subsidies for above-ground structures and for production line and R&D equipment can be granted in parallel to the maximal amount of RMB100 million.

Article 8 Support for projects in which plants or buildings are purchased.

1. If a plant or a building with clearly established ownership is purchased for an industrial project in Shunyi District (excluding those for residential purpose and auxiliary facilities) and legal procedures have performed, the project shall be subsidized at the rate of RMB2,000/construction square meter based on a comprehensive assessment conducted in accordance with this Methods. If the industrial project is engaged in manufacturing, it will be subsidized with 30% of the investment in the production line and R&D equipment.

2. After a industrial project enters Shunyi District and the transfer of ownership of the purchased plant and building or the installation of production equipment is completed, 40% of the total subsidy will be provided. If the project meets the standards stated herein within three years after commencing operation, the rest 60% of the total subsidy will be provided.

3. The subsidies for the purchase of plants and buildings and for production line and R&D equipment can be granted in parallel to the maximal amount of RMB 20 million.

Article 9 Support for projects in which plants or buildings are leased.

1. If a plant or a building with clearly established ownership is leased in an industrial project in Shunyi District (excluding those for residential purpose and auxiliary services) and legal procedures have been performed, the project will be subsidized with 50% of the actual rent occurring in the current year based on a comprehensive assessment conducted in accordance with this Methods. If the industrial project is engaged in manufacturing, it will be subsidized with 30% of the investment in the production line and R&D equipment.

2. After the project owner signs the lease contract and pays all the rent or completes the installation of production equipment, 40% of the total subsidy will be provided. If the project meets the standards stated herein within three years, the rest 60% of the total subsidy will be provided.

3. The subsidies for the rent and for production line and R&D equipment can be granted in parallel. The annual subsidy for one entity shall not exceed RMB 10 million for no more than three years cumulatively.

Article 10 Support with fund investment.

In consideration for the investment scale of major industrial project, technological content, output benefit, local contribution and degree of "high-grade, high-precision and advancement", when entering the district, the enterprise concerned is encouraged to cooperate with fund companies in the district if its development needs still cannot be met after the subsidies are granted. The district finance can also work with the enterprise to jointly set up a project fund that, under the coordination of the district Financial Office, Finance Bureau, and Economy and Information Technology Bureau, can support the enterprise with equity investment up to RMB 1 billion.

Chapter IV Application, Review and Approval

Article 11 Projects will be solicited publicly and put in the project database for rolling management. Subsidies will be granted in a holistic manner according to the annual work priorities and budgetary arrangements.

Article 12 The process of application, review and approval consists of ten steps, namely application, preliminary review, third-party review, opinions by ad-hoc expert committee, deliberation of the joint meeting, determination by a special meeting of the district government, public notice, signing of supportive agreement, appropriation of fund, and performance assessment. The application, review and approval of industrial projects is conducted before September every year. Review and approval of newly listed major projects shall be conducted in due time as needed.

Article 13 An expert panel will be formed targeting the "3+4+1" industrial sectors. The competent units in charge of specific industries are responsible for forming their respective expert panels and formulating the work rules and procedures for the expert committee. An ad-hoc expert committee will be formed to provide opinions on each project before it is submitted to the joint meeting for deliberation.

Article 14 After the project is reviewed and approved, the local authority and the project owner shall sign the Agreement on Oriented Support for Major Industrial Projects in Shunyi District, which covers the contents of support, indicator requirements, assessment and supervision, default and accountability, and others. The local authority is responsible for the execution, management and supervision of the matters covered in the agreement and for holding the project owner accountable for any default.

Chapter V Safeguards

Article 15 A joint meeting system shall be established.

A joint meeting of Shunyi District for the oriented support for major industrial projects shall be established. Director of the district Economy and Information Technology Bureau shall be the convener of the joint meeting. Leading units include the district's Economy and Information Technology Bureau and Finance Bureau, and member units include the district's Development and Reform Commission, Science and Technology Commission, State-owned Assets Supervision and Administration Commission, Housing and Urban-Rural Development Commission, Financial Office, Culture and Tourism Bureau, Commerce Bureau, Ecology and Environment Bureau, Human Resources and Social Security Bureau, Tax Service, Market Regulation Bureau, Shunyi Branch of Beijing Municipal Commission of Planning and Natural Resources, Investment Promotion Center, and so on. The joint meeting will organize relevant member units to hold project review meetings in view of the project's nature and features.

Article 16 A support fund shall be formed.

An oriented support fund of Shunyi District for major industrial projects shall be formed. The fund will implement budget management and support fund determined in the current year shall be included in next year's budget. The total sum of support fund will be adjusted annually in light of the annual performance assessment and evaluation as well as the development situation industries.

Article 17 The oriented support fund received by a project operator shall be earmarked for specified purposes and subject to the supervision and inspection of the local government and the district fiscal and audit departments.

Article 18 The local area shall have full-process tracking of the project. The district Economy and Information Technology Bureau and Finance Bureau shall conduct annual tracking on project implementation, urge the project operator to proceed on schedule, and perform overall evaluation of the use of the oriented support fund in accordance with relevant regulations. The inspection and evaluation results shall be taken into consideration for next year's funding.

Article 19 Expenses occurred in the management of support fund, including project review, policy publicity, business credit investigation, risk evaluation, financial audit and project tracking and management, shall be listed in the budget of the support fund.

Article 20 The project operator receiving the support fund shall fulfill his/her obligations in strict accordance with the agreement and be subject to social supervision. If a project owner obtains the oriented supportive fund by means of falsification of information or imposture or intercepts or embezzles the fund, all the oriented fund will be retrieved, and the project operator will be put on record for dishonesty and be barred from applying for any fiscal support fund of Shunyi District for five years.

Article 21 If an enterprise receiving the support fund moves out of Shunyi District within 10 years of enjoying the supportive policies, it shall return all the supportive fund it has received.

Chapter VI Supplemental Provisions

Article 22 If an enterprise is eligible for multiple articles in this Methods and other related policies of Shunyi District, it shall choose the most favorable one without overlapping.

Article 23 This Methods shall come into force on the date of issuance and remain in effect for three years. The previous Notice of Shunyi District People's Government of Beijing Municipality on Issuing the Methods of Shunyi District of Providing Oriented Support for Major Industrial Projects (Shun Zheng Fa [2015] No.38) shall be abolished immediately.