Guizhou High-Tech Industry Development Regulations, issued by Standing Committee of the Guizhou Provincial People’s Congress on September 24, 2007 and will become effective on January 1, 2008
1. What is “high-tech industry” as referred to in the Regulations?
In the Regulations, “high-tech industry” includes the businesses that are listed in the national or provincial high-tech industry plan and in the “Guidelines on the Areas of High-Tech Industrialization”, and are capable of promoting new industries as well as enhancing and modifying traditional industries. Such businesses must have the features of intensive application of knowledge, technologies and capital as well as high risk and cost effectiveness.
2. What forms may high-tech achievements take?
The Regulations stipulate that organizations and individuals may apply their high-tech achievements in various forms. For example, a party may hold a certain percentage of shares of a company under a lawful agreement with other interested parties when applying high-tech achievements to modify the current technologies of the company or establishing a high-tech company by holding its shares in consideration of the party’s high-tech achievements. The percentage of the shares proposed by the party shall not be more than 70%.
3. What are the advantages for a company or high-tech company to participate in a high-tech industry development project?
A company or high-tech company that participates in a high-tech industry development project may enjoy preferential policies provided by the central government and the Regulations. The company may also apply for the corresponding national and provincial funds. High-tech industry development projects and new premises built by high-tech companies for commercial or industrial purposes within the high-tech industry shall be exempted from the charges levied on urban infrastructure and facilities. Upon approval of the authorities under the provincial government, products that qualify for intellectual property right protection and are manufactured in high-tech industry development projects or are independently invented by a high-tech company may be included in the government’s procurement catalogue. A company that satisfies the above requirements and is engaged in fixed asset investment or procurement supported by government funds shall have a higher priority in its inclusion in the government’s procurement catalogue.
4. What are the preferential policies provided to skilled staff?
Skilled staff in the high-tech industry employed in high-tech industry development projects and high-tech companies shall be released from the rules governing the total allowable salary paid by employers and address registration. The staff and their spouses and children are allowed to alter their registered addresses to the employers’ locations. Their children shall enjoy the same child-care services, education and opportunities to further their studies as those enjoyed by local urban residents. Housing subsidies and family maintenance fees paid by a high-tech company as incentives to attract skilled staff in the high-tech industry shall be treated as the company’s trading costs.