Yangtze River Delta is the most economically dynamic place in China, accounting for 20% GDP of the country, already attracting many enterprises from Europe, America, Japan, and South Korea to invest and set up factories. Here are a few steps for companies to invest in the Yangtze River Delta:
Firstly, clarify the premises and related figures. At present, the more common investment ways in China include leasing or purchasing existing workshops, purchasing the land-using rights, and entrusting a general contractor to do construction (the term of land-using rights is 50 years, but for some areas is only 20 years), built to suit (the government or the real estate developer to build up the factory according to the company’s requirement); Related figures mainly include: registered capital, fixed asset, and tax contribution, etc.
Secondly, contact the investment promotion bureau in the government. For example, Dushan Port is a town and a provincial-level industrial park, under the administration of Zhejiang Province. Dushan Port Economic Development Zone is mainly gathering a group of famous companies in the field of fine chemistry, automotive parts, and logistics. It’s neighboring Shanghai by land and by sea. The contact of Dushan Port: fiona.cheng@investinzhejiang.com. After initial communication with investors, the investment promotion bureau will provide workshop solutions and incentives (tax refund, rental refund, equipment subsidy, etc.)
Thirdly, the investor and the government will finalize the investment cooperation agreement after multiple rounds of visits and negotiations about the conditions and confirm the formal cooperation between the two parties through a grand signing ceremony.
After signing the investment agreement, the next step is to carry out company registration, plant design, safety assessment, environmental impact assessment, energy assessment, etc., For land-using rights purchase, it will have land bidding, auction, and listing work at the same time while doing necessary assessments. In general, it takes around one year from signing the agreement to starting construction. Then the construction period is generally one to two years depending on different size of the investing project.
Investing in the Yangtze River Delta can definitely enjoy efficient services from the government, which is the area having the most experience to serve foreign investors, helping new enterprises to develop and grow in China like thousands of other enterprises.
Image credit: The feature image is symbolic and has been created by Sean Pavone.
