All township people’s governments and sub-district offices, all commissions, office and bureaus (centers) under the Yanqing District People’s Government, and all departments directly under the municipal government,

Upon the study and approval by the Yanqing District People’s Government, the Implementation Plan of Yanqing District for the Opinions of the People’s Government of Beijing Municipality on Land Use Policies for Accelerating Technological Innovation and Building an Economic Structure with High-grade, Precision and Advanced Technologies (Trial) is hereby issued for your careful implementation.

Yanqing District People’s Government of Beijing Municipality

May 24, 2019 

Implementation Plan of Yanqing District for the Opinions of the People’s Government of Beijing Municipality on Land Use Policies for Accelerating Technological Innovation

and Building an Economic Structure with High-grade, Precision and Advanced Technologies (Trial)

The Implementation Plan is hereby formulated in order to practically implement the Opinions of the People’s Government of Beijing Municipality on Land Use Policies for Accelerating Technological Innovation and Building an Economic Structure with High-grade, Precision and Advanced Technologies (Trial) (hereafter referred to as the Opinions), firmly seize the great historical opportunities of the 2019 Beijing International Horticultural Exhibition and the 2022 Winter Olympics, optimize land resource allocation, foster high-grade, precision and advanced industries, and impel high-quality and green economic development.

I. Scope of Application

1. The Implementation Plan is piloted in the Yanqing Park of Zhongguancun National Independent Innovation Demonstration Zone and municipal development zones (hereafter referred to as the Parks).

2. The Implementation Plan only applies to new industrial land projects.

II. Project Access Standards

In accordance with the access standards of high-grade, precision and advanced industries and in combination with the development direction of Yanqing District, conditions for projects getting access to the Parks shall be determined, and requirements for industry types (primarily cultivating modern horticulture, sports science and technology, new energy and energy conservation and environmental protection and unmanned aerial vehicle industries, and supporting industrial projects in line with the directions of the high-grade, precision and advanced industries of Beijing and generating remarkable economic or social benefits), investment intensity (the land investment per hectare not less than RMB70 million), industrial efficiency (the annual output value of per hectare of land not less than RMB150 million, and the annual tax payment amount of per hectare of land not less than RMB10 million), innovation capability, energy conservation and environmental protection and so on shall be taken as preconditions for land supply. For the key industrial projects to be cultivated, the access conditions may be properly adjusted upon approval by the Yanqing District People’s Government.

III. Establishing a Project Implementation and Access Review Mechanism

We shall establish a joint review conference for the access and implementation of high-grade, precision and advanced industries and scientific research projects in Yanqing District (hereafter referred to as the joint conference for high-grade, precision and advanced industries), which is mainly responsible for the preliminary review of high-precision, precision and advanced industries and scientific research projects in Yanqing District. Review contents include whether the projects meet the current industry direction and access standards, as well as the land use area, transfer years, energy consumption, and environmental protection indicators. Preliminary review opinions shall be given based on the review results, and be submitted to the special meeting of the Yanqing District People’s Government for deliberation. The deputy heads of the district in charge of industries and planning will jointly serve as conveners of the joint conference for high-grade, precision and advanced industries. Member units of the joint conference include the Yanqing District Economy and Information Technology Bureau, the Yanqing District Development and Reform Commission, the Administrative Committee of Yanqing Park of Zhongguancun Science Park, the Yanqing Branch Bureau of Beijing Municipal Commission of Planning and Natural Resources, the Yanqing District Ecological Environment Bureau, the Yanqing District Bureau of Water Resources and competent departments for project related industries. An office for the joint conference will be established at the Administrative Committee of Yanqing Park of Zhongguancun Science Park to undertake the routine work of the joint conference .

IV. Adjusting the Service Life of Industrial Land

Where an enterprise in the Parks applies for the acquisition of industrial land in the Parks by means of transfer, the transfer period shall be flexible,not exceeding 20 years in principle. The service life for major industrial projects of the State and Beijing Municipality may be properly extended upon approval by the People’s Government of Beijing Municipality, but shall not exceed the statutory maximum service life for the transfer purpose of land use right.

Where an enterprise in the Parks leases land for industrial use, an annual rent system will be implemented for the rent of the land. The annual rent will be formulated by the the district government based on the land cost and benefits and the industry guide policies of the Parks.

Where an enterprise in the Parks obtains the industrial land in the Parks by means of leasing, the longest term of land lease shall not exceed 15 years.According to the planning of the Parks,  enterprises in the Parks may construct production and operation facilities according to laws on the rented land, and own such facilities in the lease period.

Where an enterprise in the Parks needs to continuously use the land when the term of land-use right expires, and, it shall apply to the joint conference office for high-grade, precision and advanced industries for renewal no later than one year before the expiration. After the review of the joint conference for high-grade, precision and advanced industries, If a project meets the industrial planning and industrial land use requirements of Yanqing District and the enterprise using the land achieves the economic indicators promised at the time of entry into the Parks and has been producing normally and maintaining a growth trend, the original enterprise with the land use right may, upon approval at the special meeting of the Yanqing District People’s Government, transfer the land by agreement, and get through land supply formalities after the enterprise pays for fees for the renewal. For the original land leasing enterprises, land leasing formalities can be carried out in combination with the benchmark land price and market price at the time.

As for the enterprise not applying for renewal or with its application for renewal not approved, the Yanqing District People’s Government will organize the handling of withdrawal formalities according to laws, and take back the use right of construction land or the leased land. If the land use right is taken back, an evaluation shall be made according to laws, and compensation price shall be determined reasonably based on the fees paid by the enterprise in the Park in obtaining the land use right. With respect of buildings able to be used continuously on the land, the compensation price shall be evaluated and determined by combining replacement price and the degree of depreciation.

V. Giving Play to the Platform Role of Development Enterprises in the Parks

Development enterprises in the Parks authorized by the government shall be encouraged to lawfully use industrial land in the Parks to construct standard factory buildings and general R&D buildings for R&D centers, R&D public service platforms, open innovation platforms, and group innovation spaces, and the development enterprises in the Parks are supported to make use of these facilities to seek development.

The development enterprises in the Parks may lease standard factory buildings and land use rights to enterprises in the Parks, but they shall not transfer property rights of houses and land, or equities thereof.

VI. Whole-Life-Cycle Supervision for Industrial Land

A whole-life-cycle supervision shall be implemented for the industrial land in six aspects and at two stages, i.e. project declaration, project review and listing (transfer by agreement) before land supply, and contract signing, construction commencement and use after completion after land supply.

Before the signing of a land supply contract, the management authority of the Parks shall sign a supervision agreement for contract performance (see the appendix hereto) with the enterprises of the Parks as an appendix to the land supply contract. The supervision agreement for contract performance shall include exit clauses, specifying disposal measures in case an enterprise fails to meet access conditions after operation in the Parks, and the exit methods in case an enterprise cannot develop, construct or operate for its own reason. That is to say, if an enterprise in the Parks conducts any of the following behaviors, the Yanqing District People’s Government may take back its rights to use the construction land:

1. terminating project investment and construction for its own reason;

2. needing to change land use in the period of transfer or leasing;

3. arbitrarily changing project contents, or conducting any business activity forbidden or restricted by the State or Beijing Municipality;

4. failing to put the project into production as agreed in the Parks entry agreement, or suspending production for over half a year after production, or being dissolved;

5. making the construction land or above-ground structures unable to be used by itself for the reason of market or its own operation, etc.; or

6. any other condition under which the land is taken back in accordance with the provisions of the State and Beijing Municipality.

VII. Consolidating Supervision and Management

We shall consolidate use supervision, and persist in the use of industrial land for high-grade, precision and advanced projects. Without approval, land use shall not be changed. Except for the professional parks, public service platforms and incubator operation agencies reviewed and approved by the People’s Government of Beijing Municipality, which can lease the land with the use right held by themselves or the industrial buildings constructed to enterprises in the Parks, other enterprises in the Parks shall be forbidden to transfer, sell or lease the land and above-ground structures transferred or leased in the Parks in any form. The Yanqing District People’s Government will organize relevant departments to dispose of enterprises arbitrarily changing land use, conducting real estate development in a disguised way and so on according to relevant laws and regulations and the supervision agreement for contract performance; if circumstances are serious, the use right of construction land or leased land will be taken back. With respect to the industrial projects suspected of resulting in idle land, they will be dealt with in accordance with relevant state provisions on the disposal of idle land.

The Yanqing District People’s Government will regularly monitor and evaluate the admittance and operation of industrial projects, make the implementation public, and accept social supervision. It will further intensify enterprise credit management, blacklist enterprises that violate contracts, and restrict their access to the land supplied by the government.

VIII. Improving Service Guarantee

The Yanqing District People’s Government will regularly release to the public the information on the to-be-provided land for high-grade, precision and advanced industries, interpret relevant policies of the State and Beijing Municipality, and actively provide consulting services to facilitate enterprises. It will optimize examination and approval procedures, delegate the power of examination and approval to lower levels, organize relevant departments to handle examination and approval formalities, and provide “one-stop” examination and approval services, so as to enhance the efficiency of project establishment and construction. All relevant departments under the Yanqing District People’s Government shall interpret relevant policies at the levels of the State, Beijing Municipality and Yanqing District, actively provide consulting services for the industrial land use of high-grade, precision and advanced projects, facilitate enterprises, and create a good business environment.

Appendix: List of Review Documents for Land Using Projects

Appendix

List of Review Documents for Land Using Projects

I. Supervision Agreement on Contract Performance for  Industrial Land Projects in Yanqing District, Beijing (Template)

II. Letter of Commitment for Industrial Land Projects in Yanqing District, Beijing (Template)

III. List of Access Declaration Materials of Land Using Industrial Projects in Yanqing District, Beijing

IV. Information Registration Form of High-Grade, Precision and Advanced Projects in Yanqing District, Beijing (Template)

V. Positive Access List of High-Grade, Precision and Advanced Land Using Projects in Yanqing District, Beijing

VI. Negative Access List of High-Grade, Precision and Advanced Land Using Projects in Yanqing District, Beijing

Supervision Agreement on Contract Performance for Industrial Land Projects in Yanqing District, Beijing

(Template)

Party A:                               

Party B:                             

Date of conclusion:                           

In accordance with the Contract Law of the People’s Republic of China, the Opinions of the People’s Government of Beijing Municipality on Land Use Policies for Accelerating Technological Innovation and Building an Economic Structure with High-grade, Precision and Advanced Technologies (Trial) and other relevant provisions, Party A and Party B hereby conclude the Supervision Agreement on Contract Performance for Industrial Land Projects in Yanqing District, Beijing (the Agreement for short) in the principle of equality, free will and amicable negotiation and in combination with Party B’s commitments in the Letter of Commitment for an Industrial Land Project in Yanqing District, Beijing (the Letter of Commitment for a Project for short), in order to further enhance the quality and level of industrial projects in Yanqing District, Beijing, and impel the economical and intensive use of land.

I. Party A’s Rights and Obligations

1. Party A provides Party B with necessary basic supporting facilities.

2. Party A shall assist Party B in going through all the necessary formalities related to the construction and operation. If Party B is not registered in Yanqing District, Party A will assist Party B in changing its registered address to the Yanqing Park.

3. Party A shall actively strive for relevant support policies of governments at all levels and the Administrative Committee of Zhongguancun Science Park for Party B.

4. Party A shall supervise and review the completion conditions of the Letter of Commitment for a Project of Party B each year.

5. If an enterprise quits by itself in accordance with the Agreement, Party A shall guarantee to make a full payment in accordance with the compensation standard of relevant policies.

II. Party B’s Rights and Obligations

1. Party B shall be obligated to conform to relevant laws and regulations and obey Party A’s lawful management.

2. Party B shall be entitled to enjoy the support policies of government offices at all levels and relevant departments.

3. Party B’s withdrawal conditions shall be temporarily subject to the Opinions of the People’s Government of Beijing Municipality on Land Use Policies for Accelerating Technological Innovation and Building an Economic Structure with High-grade, Precision and Advanced Technologies (Trial) (Jing Zheng Fa [2017] No.39) and relevant documents of Yanqing District. In the case of an adjustment to relevant policies of the State, Beijing Municipality or Yanqing District, new policies shall be implemented. In that case, Party B will be entitled to compensations under the policies.

4. When the service life expires as agreed in the land use contract, Party B will have the priority to continue to use the land under this Agreement, provided that it shall submit an application for renewal to Party A at least one year before expiration of the Agreement. Party A shall assist in going through relevant land formalities in accordance with relavant policies. .

III. Withdrawal Situations and Supervision Measures

(I) If Party B fails to meet the commitments made in the Letter of Commitment for a Project or falls into any of the following circumstances, Party A will be entitled to require Party B to formulate a plan for rectification and improvement, and provide Party B with a term of     months to reach the standard according to actual conditions of the project; if Party B still fails to meet the standard at the deadline, it shall withdraw by itself, and finish withdrawal (including emptying office buildings and factory buildings, the placement of personnel, the liquidation of credit and debt and other withdrawal matters) based on its scale within three to six months, and Party A can apply to the Yanqing Branch Bureau of Beijing Municipal Commission of Planning and Natural Resources for the taking back of land after making a compensation according to relevant policies.

1. Party B fails to conduct construction and operation according to laws and regulations after obtaining land use warrant (for a leasing project, after the conclusion of lease agreement).

2. In the course of land use, Party B fails to use the land strictly in accordance with the land use contract, and arbitrarily changes the land use purpose.

3. Party B fails to complete the investment plan for fixed asset(for a leasing project, after the conclusion of lease agreement) within _____ months from the date of obtaining the land use certificate, and fails to meet the preliminary production conditions (including not obtaining various licenses, certificates and other procedures related to production and operation).

4. Party B fails to meet the standards (output value, efficiency, tax amount, etc.) in the Letter of Commitment for a Project within_____ years (the period from the time of obtaining the house ownership certificate to December 31 of that year is calculated as one year, and the rest are full accounting years).

5. After review and identification, Party B, due to its own operation, market, or other reasons, fails to meet over 70% of standards filled in by itself for three accounting years consecutively as from the year when it meets the standards in the Letter of Commitment for a Project.

6. Party B suspends production for over half a year after the project is put into production, or Party B is dissolved;

7. In the process of production and operation, Party B shall conform to the national standards and requirements in terms of energy consumption, water consumption, environmental protection, security and so on. Party B fails to make corrections intentionally or really cannot achieve correction effects according to its existing technical level.

8. Party B leases or transfers the land or factory buildings without permission.

(II) Where Party B should withdraw but fails to do so, Party A will be entitled to take effective compulsory measures in accordance with the Agreement. Party A’s expenses arising from the compulsory withdrawal will be deducted from Party B’s compensation fees. If Party B goes beyond the withdrawal time limit stipulated by Party A, late fees will be collected by RMB1,000/mu/day for each day of delay.

IV. Withdrawal Compensation

When Party A takes back the use right of industrial land from Party B in advance for a project with the construction land obtained by Party B in the way of transfer, Party A shall refund the land transfer price of the remaining period already paid by Party B, except for the free taking back of land according to laws and regulations; as for Party B’s above-ground buildings able to be continuously used, the compensation price shall be determined based on the replacement price in combination with the degree of depreciation. As for the project with the construction land used by Party B by means of leasing, Party A can take back the land rented by Party B in advance, and concerning the above-ground buildings able to be continuously used, the compensation price shall be determined based on the replacement price in combination with the degree of depreciation.

V. Supplementary Provisions

(I)Neither Party A nor Party B shall bear corresponding legal liability for failing to perform the Agreement in whole or in part due to force majeure, such as natural disaster, war or state policy adjustment.

(II) In the case of any dispute arising from the performance of the Agreement, Party A and Party B shall settle it upon amicable negotiation. If the negotiation fails, either party will be entitled to file a lawsuit with the Yanqing People’s Court of Beijing Municipality, or apply to the Beijing Arbitration Commission for arbitration.

(III) The Agreement, as an appendix to the land supply contract concluded, shall have the same legal force as the latter.

(IV) The Agreement shall come into force as of the date when legal representatives or authorized representatives of both parties affix signatures and corporate seals.

(V) The Agreement shall be executed in five counterparts with equal legal force, with one held by Party A, Party B, the Yanqing District Economy and Information Technology Bureau, the Yanqing Branch Bureau of Beijing Municipal Commission of Planning and Natural Resources and the Yanqing District Development and Reform Commission respectively.

Party A:  (seal)                                                                 Party B:  (seal)   

Signature of legal representative                                   Signature of legal representative 

or authorized representative:                                         or authorized representative:  

[MM][DD][YYYY]                                                             [MM][DD][YYYY]

Letter of Commitment for an Industrial Land Project in Yanqing District, Beijing (Template)

In accordance with the Contract Law of the People’s Republic of China, the Opinions of the People’s Government of Beijing Municipality on Land Use Policies for Accelerating Technological Innovation and Building an Economic Structure with High-grade, Precision and Advanced Technologies (Trial) and other relevant provisions,                     (the committing entity) hereby makes the following commitments in combination with actual conditions of the to-be-constructed project:

I. Basic Information of the To-Be-Constructed Project

1. Name:                                      

2. Main contents:                                       

3. Area of to-be-used land:                                                                      

4. Investment scale:                                      

5. Expected annual output value after the designed capacity is reached:                              

6. Expected annual tax after production:                           

7. Land service life:                                  

II. Commitment Contents

1. If the land is obtained, the project will be fully constructed and formally put into use within  months as of the date when the transfer (leasing) contract of use right of state-owned construction land is concluded, and the designed capacity will be formally reached within       months after it is put into use (in case of any unexpected factor such as policy changes, the aforesaid periods may be postponed upon written confirmation by the administrative department of the Parks or relevant functional departments ).

2. In the process of the production and operation of the project, the land will be used in strict accordance with the approved project contents.

3. The investment intensity of fixed assets  of the project  fixed assets per unit land area, including factory buildings and equipment, excluding land price) will be not less than      , the annual output value (business revenue) after the designed capacity is reached will be not less than RMB_____   00,000,000 (     per unit land area), the per capita output will be not less than      , and annual tax amount will be not less than RMB     00, 000,000.

4. In the process of construction, production and operation of the project, national standards and requirements will be conformed to in terms of energy consumption, water consumption, environmental protection, security and so on.

5. The registration place will be transferred into the Yanqing Park of Zhongguancun Science Park (except those units that been registered in the Park) within three months as of the date when the transfer (leasing) contract of use right of state-owned construction land is concluded, and will be not transferred out of the Yanqing Park within the land service life.

III. Administrative Measures for Failing to Meet the Commitments

If the undertaking entity fails to meet the aforesaid commitments, it will agree on the treatment in the following ways:

1. If it fails to start work within the committed period and there is no written confirmation and approval for postpone from the administrative department of the Parks or relevant functional department, the Yanqing District People’s Government will freely take back the right to use the state-owned construction land.

2. If it fails to realize the committed investment intensity, the output value of per unit land area or per capita, tax amount or any other indicator requirements within the committed period, the Yanqing District People’s Government will be entitled to order it to make corrections within a prescribed time limit, and if the project fails to make corrections as required, the Yanqing District People’s Government will be entitled to order relevant department to impose  penalties in accordance with  relevant provisions until the land use right is taken back. If the land use right of the project is taken back, the compensation price will be determined for the above-ground buildings (structures) and attachments based on the replacement price in combination with the degree of depreciation.

IV. Other Issues

1. After signing the transfer contract of use right of the state-owned construction land, the undertaking entity shall report the construction progress of the project to the administrative department of the Parks on the 15th day of the first month of each quarter, until the project is put into production; after the project is put into production, Party B shall, as per provisions of the administrative department of the Parks, regularly report project operation conditions in writing, until it does not renew the contract upon the expiration of land service life or it withdraws the project in advance. If an enterprise in the Parks fails to submit relevant certification materials on time, and still fails to do so after expediting, it will be dealt with in a way for the breach of commitment.

2. The undertaking entity shall strictly fulfill confidentiality obligations, and shall not disclose to a third party contents of the Letter of Commitment for a Project for any reason or purpose. The confidentiality clauses shall survive the expiration of the land service life or the early withdrawal of the project.

List of Access Declaration Materials of a Land Using Industrial Project in Yanqing District, Beijing

Concerning land using projects to be settled in the Yanqing Park of Zhongguancun Science Park and municipal development zones (the “Parks”), the following materials shall be provided, and be submitted to the joint review conference for the access and implementation of high-grade, precision and advanced industries and scientific research projects in Yanqing District for deliberation.

1. Project information registration form

2. Business license of enterprise

3. Statistical statements of the enterprise in recent three years

4. Business proposal of the project

5. Conceptual design scheme of the project

6. Construction fund plan of the project

7. Information on patents already received

8. State or Zhongguancun high-tech enterprise certificate

9. Other relevant materials required by the joint conference

In addition to indicators involved in the Declaration Form of Preliminary Review of Industrial Projects in Yanqing District, Beijing, the business proposal shall also specify in detail the project construction contents (including production line, names and quantities of production equipment, names and quantities of raw and auxiliary materials, detailed production technology, main product functions, and descriptions of manufacturing/R&D/headquarter- functions), explanations about technical advancement (including core technology, patent technology and main equipment), waste emission load and to-be-adopted pollution prevention and control measures, introduction to leading talents or core team, industry position and market shares, R&D and innovation capability and so on.

The construction fund plan shall include: the scale of to-be-invested fund, the source of the fund, the time when the fund is in place for each period, and the allocation conditions and certification of self-owned fund.

Information Registration Form of a High-grade, Precision and Advanced Project in Yanqing District, Beijing

Positive Access List of High-grade, Precision and Advanced Land Using Projects in Yanqing District, Beijing

I. Projects meeting the requirements of the Guiding Catalog of Green Industries (2019 Edition) (Fa Gai Huan Zi [2019] No.293) jointly issued by seven departments including the National Development and Reform Commission.

II.Projects meeting the requirements specified under the Registration and Guidance Directory of Beijing Municipality of Top Ten High-grade, Precision and Advanced Industries (2018 Edition) (Jing Jing Xin Fa [2018] No.10).

III. Projects conforming to the positioning of Yanqing District as an “ecological conservation area” under the general planning of Beijing Municipality.

IV.Projects meeting the energy consumption indicator requirements of Yanqing District.

V. Projects meeting the environmental protection indicator requirements with their annual emissions of major pollutants conforming to the provisions of the State, Beijing Municipality and Yanqing District.

VI. Modern horticulture, sports science and technology, new energy and energy conservation and environmental protection and unmanned aerial vehicle industries are primarily cultivated, and industrial projects in line with the directions of the high-grade, precision and advanced industries of Beijing Municipality are supported.

VII. Projects generating remarkable economic or social benefits are encouraged.

Positive Access List of High-grade, Precision and Advanced Land Using Projects in Yanqing District, Beijing

I. Forbidden and restricted projects within the ecological conservation area as specified in the Directory of Beijing Municipality of Forbidden and Restricted Projects in New Industries (2018 Edition).

II. Projects with total energy consumption or energy consumption per unit output value higher than the average level of the same industry in Yanqing District.

III. Projects not meeting environmental protection indicator requirements, and with annual emissions of major pollutants not conforming to provisions of the State, Beijing Municipality and Yanqing District.

IV. Projects with investment intensity, industry efficiency and other indicators not meeting access standards of industrial projects of Yanqing District.