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LIN-GANG SPECIAL AREA INVESTMENT GUIDE
SPECIAL AREA
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中国外运
SIEMENS
HDSC华大半导体
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CATERPILLAR
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PHILIPS
DB SCHENKER
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JINCHUANMAIKE 川酒网
EXL
伊禾农品
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LINGANG GROUP 港集 东和恩泰
Cambricon
SIASUN新松
STAPLES
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BTU
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天猫TMALL.COM
A哈通
During his visit to Shanghai in November 2019, President Xi Jinping expressed new requirements to Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, which can be summed up as “Five Important Elements". His remarks pointed out the strategic positioning, development goals, pathways for achieving the goals, and detailed measures for the development of Lin-gang Special Area in the next stage, asked Lin-gang to achieve comprehensive and high-quality opening-up on deeper levels, in broader areas, and with stronger determination, and underlined the necessity for innovation of mechanisms and systems, improvement of institutions, and higher economic quality.
The construction of Lin-gang Special Area is an overarching decision made by the Party Central Committee of the Communist Party of China, with President Xi at its very heart. It is a major strategic move based on rigorous decision-making processes to further expand the opening of China, and a key measure to underpin the all-round opening of China and its willingness to lead the healthy development of globalization in the new era. Lin-gang benchmarks itself against the most competitive free trade
Economic goal:
a special economic functional zone with stronger influence and competitiveness in international markets.
zones in the world, targets key areas that are in line with national strategies, with huge international market potentials, and not yet practical in other areas for their requirement of open markets, applies open policies and administrative measures that are competitive in international markets, embraces stress tests of open economy, actively serves and integrates into major national strategies, and provides better services to the overall strategic layout of opening-up China.
Urban development goal:
a modern city with open innovation, smart ecosystem, vibrant industries, and livable and business-friendly environment.
DEVELOPMENTGOALS
2025 Goal:
2035 Goal:
PLANNED AREA
Lin-gang Special Area locates at the southeast corner of Shanghai, with Pudong International Airport, the third largest airport in the world, at its north, and Yangshan Deep Water Port, the largest container port in the world, at its south.
As an independent node city of the Yangtze River Delta, it sits at the norther end of Hangzhou Bay, a major passage over the sea, and the middle section of coastal corridor of east China.
The total planned area of Lin-gang Special Area is 873 km2, including the region south to Dazhi River and east to Jinhui Stream, Xiaoyangshan Island, and the southern part to Pudong International Airport. Under the principle of "overall planning and step-by-step implementation", the first stage of development (119.5 km²) is carried out in Nanhui New Town, Xiaoyangshan Island, the southern part to Pudong International Airport, and Lin-gang Equipment Industrial Zone.
The largest port in the world Yangshan International Hub Port
Lin-gang Special Area sits at the intersection of Yangtze River estuary and Hangzhou Bay, connecting Pudong International Airport, the third largest airport in the world, in the north and Yangshan Deepwater Port, the largest container port in the world, in the south. It also boasts the only multi-purpose port in southeast Shanghai --Shanghai South Port. It is a critical link along the coast combining sea, land, air, rail, underground and river transport, and an international frontier city that faces the world, connects Asia-Pacific and serves Yangtze River Delta.
Sea Transport
With Yangshan Deep Water Port and Shanghai South Port in its vicinity, Lin-gang Special Area is only 35 km to Yangshan.
Air Transport
With Pudong Interational Air Transport Hub at its north, it takes only 15 minutes to get to Pudong Airport and 60 minutes to Hongqiao Airport from downtown Lin-gang.
Road Transport
The total road network stretches 1,500 km, among which 71 km are expressway. A 150-km rapid road network and a 400-km arterial highway network are planned. It takes less than 30 minutes on average to go to any place in downtown Lin-gang.
Metro Transport
It takes 37 minutes from Longyang Road Station (Metro Line 16) to Lin-gang Special Area. A 100-km transport framework is planned, which takes only 30 minutes to downtown Shanghai.
Rail Transport
Pudong Railway is now used for freight transportation, but it will be upgraded to an intercity railway connecting directly to Shanghai South Railway Station. It is integrated into the Yangtze River Delta and reaches nearby cities in the delta in 90 minutes.
River Transport
Dalu Line (level 3 passage) Jinhui Port (level 4 passage)
By 2022
Lin-gang Special Area issued Three-Year Action Plan for the Improvement of Transport in Lin-gangSpecial Area of China (Shanghai) Pilot Free Trade Zone (2020-2022)" on 18 April 2020, which aims to further ameliorate Lin-gang's connectivity to other areas as well as its internal transport network.
Local level
Build multi-level and green transport corridor. Improve the smooth transit among areas in Lin-gang to offer more choices on transport routes.
Municipal level
Improve the capacity and quality of transport corridors. Form an intensive rapid road system connecting the center of Lin-gang to key areas and transport hubs in Shanghai.
Internal level
Provide easy, smart and
intensive service.
Ensure the connectivity among the functional areas in down
town Lin-gang. Embody the
features of transport in Lin-gang Special Area.
In addition to the open and innovative measures adopted in existing pilot free trade zones in China, Lin-gang Special Area will make even larger strides in promoting investment and trade facilitation by encouraging the free flow of investment, trade, capital, goods, and personnel.
INSTITUTIONAL SYSTEM
ADMINISTRATIVE SYSTEM:
Lin-gang Special Area Administration was established on 20 August 2019. As an institution under Shanghai Municipal People's Government, it oversees the implementation of all pilot reform tasks, economic management, and coordination and management of related administrative affairs in Lin-gang Special Area.
2
Principles
Freedom
1
Facilitation
ADMINISTRATIVE MEASURES:
Lin-gang Special Area is not a mere expansion of the free trade zone, nor is it a simple duplication of existing policies. It is an all-round, deep-rooted, and fundamental institutional innovation and reform.
2
Systems
2
Privileges
POSSIBLE POLCIES":
Measures published by Shanghai are directly applied in Lin-gang Special Area il they are beneficial to its development
"AUTOMATIC POLICY APPUCATIC
New and innovative measures in the pilot free Irade zones in China applicable to Lin-gang Special
Investment and operation facilitation based on fair competition; trade liberalization with high standards; financial management system that facilitates cross-border payment and receipt; international shipping management that is highly opened up, and human résource management that encourages the flow of talents.
Safe and orderly flow of international Internet data across national borders.
An internationally competitive tax system, and a comprehensive risk management system.
The management of Lin-gang Special Area is based on that of an economic special area. Lin-gang Special Area is granted more discretionary power for its own development, reform, and innovation. Under the premise of controllable risks, it can carry out innovative business in respond to market demands.
PAGE 16. 02. Integrated Cir
PAGE 18. 03.Biomedicin
PAGE 14. 01. Artificial Intelligence
PAGE 04.Aerospace & Aeronautics
PAGE 24. 05.New Energy Vehicle
AGE
PAGE2 en R
08.Finance & New International Trade PAGE 30.
09. Commerce, Culture, Tourism, Sports PAGE 3
10. Yangshan Free Trade Zone PAGE
PAGE 44 11. Three Featured Industrial Parks
PAG erview of Key dustrial Parks
Industry Overview:
Lin-gang Special Area is the main battleground for Shanghai's initiative to become a scientific and technological innovation center with global influence. It is now sparing no effort to build an international smart manufacture center. Lin-gang Special Area will become a demonstrative zone for the innovative application of artificial intelligence with its leading technologies, diverse application scenarios, global innovation elements, and deep integration between Al and real economy. By 2025, Al-related industries will grow to 50 billionyuan. By 2035, the industries will grow to 200
billion yuan.
Building on its solid industrial base for smart manufacture and industrial Intemet, Lin-gang Special Area has attracted Al technology platforms and leading companies, such as Center for Excellence in BrainScience and Intelligence Technology (China Academy of Sciences), iFlytek, and Cambricon. Its industrial chain covers important links including hardware, algorithm, and application, providing a sound foundation for future development.
Artificial Intelligence industry
International Innovation and Cooperation Zone
Al chip design, unmanned platform, tool software and smart informat service, driverless vehiele, gener technology development and service.
Comprehensive Zone & Pilot Zone
Smart hardware, smart robot.
Frontier Industry Zone
Smart sensor, smart new energy vehiele, smart equipment & material.
Investment Advantages:
Functional technology transfer platforms are opened in Lin-gang, such as the Information and Innovation Center of China Artificial Intelligence Industry Alliance and Shanghai Lin-gang Artificial Intelligence Lab (Slailab), making the “Al Base in Lin-gang" a famous brand in the industry. Lin-gang Special Area cooperates with Shanghai Jiao Tong University and Fudan University for projects such as Al academician workstations, municipal research and transfer platforms for smart manufacture and industrial Internet, and World Laureates Association Annual Forum. The ecosystem for Al industry is well established in Lin-gang.
Shanghai Guosheng Group and Lin-gang Group co-founded Shanghai Al Investment Fund, which has an initial scale of 10 billion yuan. The fund adopts a hybrid investment strategy of direct investment and investment through sub-funds, seizes the opportunity offered by Al industry, and focuses on the core technologies and key applications of Al. It aims to nurture an industrial chain and ecosystem that connects cutting-edge technologies in the world and local application, strengthens indigenous innovation, application demonstration, policy support, and talent pooling, and accelerates the construction of an Al gravity center in Shanghai.
Lin-gang Special Area will implement the "Lin-gang Al+" campaign to encourage the trial run of the latest research results of global Al technologies. JD Al Research, Alibaba Cloud and other Al innovation centers are operational in Lin-gang, showing the prominence of Al clusters in the special area. Lin-gang Science and Technology City is chosen among the first application scenarios for new Al technology. It is building world-class application scenarios for "Al+ port transport".
Industrial Policies:
Support the clustering of major projects. Support the deep integration of artificial intelligence and other key industries such as integrated circuits, biomedicine, and aerospace and aeronautics, based on the functional positioning and industrial base. Support artificial intelligence's role as a catalyst for new and emerging industries such as smart connected vehicle, smart manufacture, and smart robotics.
Deep integration projects between artificial intelligence and integrated circuits, biomedicine, aerospace and aeronautics, high-end equipment manufacture, or other strategic and emerging industries. Artificial intelligence technologies that serve as a catalyst for new and emerging industries such as smart connected vehicle, smart manufacture, and smart robotics.
Enterprise for the development of key technologies or generic technologies of Al chip design, core algorithm, operation system, basic software, and smart sensors.
World-class and diversified application scenarios in Lin-gang Special Area.
Several Measures to Promiote the Clustering Developnent of Artificial Intelligence Industry im Lin-gang Special Area of China (Shaoghai) Pilot Free Irade Zone
Industry Overview:
Since its inauguration in 2003, Lin-gang has always been adopting a five-prong development strategy for industries, infrastructure, urban construction, ecology and environment, and city-industry integration. Integrated circuit is the staple product of information technology industry, it is also one of the pillar industries of Lin-gang in the past 17 years. It is worth noting that in 2017, Lin-gang put forward a “2+3+4” industrial layout, in which “4" stands for four major industries with integrated circuit industry being the largest one among them.
Integrated circuit industry is a critical link in the industrial layout, as it connects artificial intelligence and information software on one end, and smart equipment manufacture and aerospace and aeronautics on the other. After the official establishment of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone in 2019, the state government asked Lin-gang to prioritize 4 development areas: 1. develop new types of intemational trade, 2. build a global shipping hub, 3. expand cross-border financial service, and 4. construct an open industrial system that is competitive in intemational markets.
The integrated circuit industry in Lin-gang Special Area starts with equipment and materials, and its industrial chain keeps growing and improving. It responds to national strategies by attracting projects
Industrial Map of Integrated Circuit
Comprehensive Industrial Base for Integrated Circui
Chip fabrication, equipment & materials, high-end packing & testing, etc.
International Innovation and
Cooperation Zone
High-end chip design
Frontier Industry Zone High-end chip design
Special Comprehensive Bonded Area Chip fabrication, equipment & materials, high-end packing & testing, etc.
that aims to tackle "bottleneck" technologies in the industries. Breakthroughs are already made in EDA tools, large wafers, photoresist, and new storage medium. These loose links on the industrial chain of integrated circuit in Shanghai is strengthened.
Lin-gang is now home to more than 40 leading companies of the industry, including Huada Semiconductor, ZingSemi, Macronix, Galaxycore Microelectronics, AMEC, Cambricon, and iFlytek, forming an ecosystem for the entire industrial chain from chip design to specialized technique, new
storage, 3rd generation semiconductor, packaging and testing, equipment and materials.
The investment attraction in Lin-gang Special Area is well targeted. The attracted projects in integrated circuits have a total contracted investment of more than 100 billion yuan, among which 3 major ones have at least 10 billion yuan of investment each. By 2025, the industrial output of the integrated circuits in Lin-gang will exceed100 billion yuan, accounting for 20% of Shanghai.
Investment Advantages:
Lin-gang was launched in 2003. In the next year, Shanghai listed integrated circuits as one of its pillar industries and published a series of favorablepolicies.For example, the Shanghai Integrated Circuit Equipment and Material Fund was set up to pool supportive policies and private investment. As a result, many outstanding companies in the industry came to Lin-gang, and the industrial development accelerated. In 2019, the Overall Plan for Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone clearly stated that Lin-gang Special Area will build clusters of frontier industries that tackle core technologies. It will establish a comprehensive industrial base for integrated circuits, improve the bonded supervision over the whole process of the import of materials and parts, support multinational companies to set up offshore R&D and fabrication centers, and promote the development of core chips, specialized technique, key equipment and basic materials.
In May 2020, the Five-Year Development Plan for Integrated
Circuit Industry in Lin-gang Special Area mentioned that integrated circuit is the core and the basis of the next generation information technology, and it is one of the four clusters of frontier industries in Lin-gang Special Area, which will make efforts to further enhance the capacity of IC industry, attract more industrial resources and innovation factors, and build a world-class “Oriental Chip Hub". All these will expand the development space of the industry and improve its overall influence. A large number of planned platforms, including Shanghai SMIT EDA Institute, Shanghai Lin-gang Power Electronics Institute, and Compound Semiconductor Innovation Research Platform of SITRI, ensure the growth of indigenous innovation of integrated circuits. Lin-gang SpecialArea has set up several funds to attract private investment into integrated circuit industry, such as a special development fund of 100 billion yuan, Shanghai Industrial Fund for Integrated Circuit Equipment and Materials (total size 10 billion yuan, initial size 5 billion yuan), and Shanghai More than More Fund.
Industrial Policies:
In October 2019, Lin-gang Special Area Administration announced 16 policies to promote industrial development and 40 supportive measures to develop 4 pillar industrial (the “1+4” industrial policies), lending all-round support to the project construction, development scale, M&A, equipment purchase, R&D expenditure, EDA/IP purchase, tape out, testing and validation, promotion and application, and electricity price of IC companies. As a result, Lin-gang now offers the best policy support to the IC industry in China.
Investment R&D centers or industrial projects by IC companies with major global or domestic influence.
Attraction Offshore R&D centers or fabrication centers by multinational companies in IC industry.
Focus: Companies that are certified as a national or municipal major project will get extra fiscal support.
Industry Overview:
Biomedicine is a fundamental industry closely linked to people's livelihood. As a sunrise industry and one of the strategic emerging industries in Lin-gang Special Area, it has strong growth potential, affects industries in the upstreamor downstream, and boosts the development of other industries. Lin-gang Special Area is building a cluster for international medical services. By allowing high-level opening-up, unprecedented favorable policies, and visible investment benefit, Lin-gang provides the innovation-drive development of biomedicine industries with an environment that has a high
concentration of innovation factors, complete systems and functions, and active market players More than 80 companies in 15 related industries have set up presence in Lin-gang, including leading companies in each sector such as TopAlliance (the first producer of PD1 monoclonal antibody in China), Dejian (R&D and commercialization of protein and polypeptide drugs), Celgene Biopharma (R&D, manufacture and sales of recombinant protein and monoclonal antibody drugs), and Dragon Sail Pharmaceutical (R&D and manufacture of monoclonal antibody cancer drugs).
Investment Advantages:
Lin-gang Special Area regards biomedicine as one of its 4 pillar industries since the very beginning and provides supports in tax, finance, international trade, planning, and land provision.
Lin-gang is sparing no effort to build the best clinical research hospitals in the world. In the process of building a cluster of international medical services, it allows, in certain hospitals, the use of urgent clinical drugs, medical equipment and new cancer drugs that are approved overseas, and gives impetus to the new development model combining scientific research, clinical trial and medical services.
Lin-gang Special Area prioritizes biomedicine industry, attracts many leading companies, and forms an industrial chain across the upstream and downstream. It will also adopt an innovative incubation model of "base + project + government funds" to provide investment and registration service, attract international innovation-driven companies of biotechnology, medical care, medicine, and big health to come to Shanghai, help such companies to localize smoothly, and support international innovation-driven companies, investment institutions and industrial partners to build a new industrial ecosystem.
Industrial Policies:
To support the bio-pharmaceutical industry, Lin-gang Special Area has announced 10 favorable policies in the Several Measures to Promote the Clustering of Biomedicine Industry in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone:
Highlight high-end “R&D + manufacture + service". Focus on areas such as antibody drugs, biopharmaceuticals, cell therapy, precision medicine, and high-end medical equipment. Construct a complete industrial chain for life science.
Support the establishment of producer service providers for outstanding biomedicine companies and research institutes in China and the rest of the world.
Support the coordination between Zhangjiang and Lin-gang. Respond to the commercialization demand of high-end biomedicine projects. Support national industrial preparation projects that are unprecedented in China.
Launch the pilot demonstration zone of precision medicine in Lin-gang Special Area, with a focus on precision medicine, precision medical equipment, precision diagnosis and health service. Highlight high-end "R&D + manufacture + service", with a focus on key projects or companies in biotechnology drugs, precision medicine, and high-end medical equipment. Construct a complete industrial chain for biomedicine technology. Support the establishment of producer service providers for outstanding biomedicine companies and research institutes in China and the rest of the world. Respond to the commercialization demand of high-end biomedicine projects.
Industry Overview:
Since its inauguration in 2003, Lin-gang sticks to the principle of "embodying national strategy, Shanghai advantages and international competitiveness", and became very quickly a national demonstration base of new industrialization industry (aerospace and aeronautics). In many years, it regards the promotion of aviation industry and the nurture of aviation industrial chain as an important direction of development. In terms of aircraft manufacture, Lin-gang has attracted leading companies and
research institutes such as AECC Commercial Aircraft Engine, Aircraft Engine Research Institute of Shanghai Jiao Tong University, and Innovation Academy for Microsatellites of CAS, and deployed a cluster of aerospace industry that centers on the manufacture of engine and key parts of commercial airplanes and covers related sectors such as aerospace material, airborne equipment, environmental control, maintenance and refit, and air service.
The start of the second phase of SAEM Aircraft Equipment Project will forcefully enhance the smart manufacture of aircrafts in Lin-gang, underlining its importance and visibility in the industrial layout of the city.
After the inauguration of Lin-gang Special Area, an overall development plan is set for the 24.7 km² in the souther part of Pudong International Airport. According to that, the area will become a leading area for international frontier and emerging industries, which centers on a world-class aviation industry with global influence and innovation capability.
By 2030, the industrial output will exceed 100 billion yuan, attracting 100-150 first-rate companies and more than 30,000 talents.
By 2035, the industrial output will exceed 200 billion yuan, attracting 200-300 first-rate companies and more than 50,000 talents.
Aerospace and aeronautics industry will be found in 3 clusters
Southern Part of Pudong International Airport
Large aircraft design & manufacture, manufacture of avionic equipment and core parts, manufacture of high-performance spacecraft
Frontier Industrial Zone
Engine manufacture and assembly, compound material for aerospace and aeronautics, general aviation
Comprehensive Zone & Pifot Zone
Microsatellite, BeiDou Navigation Satellite System
Investment Advantages:
As a new strategic center for the resource allocation of international aviation industry, Lin-gang Special Area sees its economy output from the world-class aerospace industry growing steadily and rapidly.
It will build a number of research and innovation platforms for the key technologies and core parts of civil aviation, functional platforms for the research and technology transfer of avionics and aircraft engines, and testing and validation platforms for the new materials and products of civil airplanes. Its world-class capacity of sci-tech innovation will be enhanced continuously. As first-rate multinational companies in research manufacture, and logistic in the world come to Lin-gang Special Area, some with their regional headquarters, top talents such as researchers, engineers and highly skilled workers in various areas also flocks to Lin-gang. Their presence injects new impetus to the development of aerospace and aeronautics industries and provides strong support and assurance to the aviation industrial base with global influence.
Industrial Policies:
To support aerospace and aeronautic industry, Lin-gang Special Area has announced 10 favorable policies in the Several Measures to Promote the Clustering of Aerospace and Aeronautic Industry in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone.
With a focus on large airliners and civil aircraft engines, Lin-ganglifts restrictions on registered capital and investment methods, supports aerospace and aeronautic institutes with domestic and international competitiveness to set up R&D centers and invest in industrial projects. The specific incentives and supportive measures will be decided by the expert review of Lin-gangSpecial Area Administration.
Support breakthroughs in core products and technologies:
Lin-gang Special Area Administration follows the annual requirement from the central or municipal government on industrial development or technology innovation, encourages the research and development in cutting-edge technologies for large airliner, aircraft engine, drone, and
microsatellite, aims to make breakthroughs in their core spare parts, fundamental materials, advanced process techniques, and industrial technologies, solicits product requirements in aerospace and aeronautics, selects premium projects, and organizes international bidding to find the best team to tacked those needs. Financial support worth no more than 50% of the technology research expenditure is granted to the unit (or union) that makes the breakthrough of core technology, based on the project requirement and result of expert review.
Support the attraction and incubation of backbone enterprises that have sizable shares in domestic and international aerospace and aeronautic markets, as well as medium, small, and micro enterprises. Accelerate the establishment of supportive institutes and industrial projects for fundamental research, technology development, product research, and experimental validation. Form synergy among projects in the industrial cluster. Promote the development of whole industrial chain in aerospace and aeronautics, such as general assembly and delivery, manufacture support, operation, and maintenance. If a company has an actual investment of 50 million yuan or above, it will receive a reward worth 3%-5% if its certified paid-in capital is equal to or more than 50 million yuan, with the same company receiving no more than 10 million yuan. The amount of reward is calculated basedon the actual paid-in capital when it first exceeds the above-mentioned threshold, and will be granted in three years in the rate of 40%, 30%, and 30%.
Aviation/aerospace enterprises that purchase products or services exceeding 5 million yuan annually from non-related enterprises in Lin-gang Special Area will be given a reward equal to 2 percent of the purchase invoice amount, with a maximum reward of 3 million yuan.
Support the large-scale development of enterprises:
(1) R&D or producer service enterprises that achieve for the first time an annual sales revenue exceeding 50 million yuan, 100 million yuan, 500 million yuan, 1 billion yuan and 2 billion yuan will respectively be offered a one-off reward of 1 million yuan, 1.5 million yuan, 2 million yuan, 3 million yuan and 5 million yuan maximum. The difference between ranks will be rewarded when the enterprise upgrade to a higher rank.
(2) Manufacturing enterprises that achieve for the first time an annual sales revenue exceeding 500 million yuan, 1 billion yuan, 5 billion yuan and 10 billion yuan will respectively be offered a one-off reward of 1 million yuan, 2 million yuan, 3 million yuan and 5 million yuan maximum. The difference between ranks will be rewarded when the enterprise upgrade to a higher rank.
Support merger and acquisition:
For successful acquisitions of domestic or foreign enterprises or key R&D institutions in the aviation/aerospace industry chain, which cost more than 10 million yuan, a subsidy equal to 5% of the actual transaction cost is granted, with the maximum accumulative amount of 5 million yuan.
Support demonstration & application:
Aviation/aerospace manufacturing enterprises are supported to strengthen their IT application, upgrade intelligent equipment continuously, and form a number of exemplary application cases. Aviation/aerospace equipment manufacturers recognized as state-level intelligent manufacturing demonstration enterprises or demonstration workshops will be offered a one-off subsidy of 2 million yuan in addition to the municipal funding. Aviation/aerospace equipment manufacturers recognized as municipal intelligent manufacturing demonstration enterprises or demonstration workshops will be offered a one-off subsidy of 1 million yuan.
The financial support for enterprises that conduct function, performance, reliability, compatibility, failure analysis or other testing or validation for engineering prototypes or samples will be rewarded 50% of the actual cost with a maximum of 2 million yuan each year.
Enterprises that have obtained aviation/aerospace qualifications recognized or issued by China will be given a one-off reward of 300,000 yuan maximum foreachqualification, with a maximum of three qualifications for each enterprise. Enterprises that have obtained qualifications recognized or issued by international institutions or advancedcountries in the aviation/aerospace field will begiven a one-off reward of 1 million yuan maximum for each qualification, with a maximum of three qualifications for each enterprise.
Advanced aviation/aerospace enterprises (institutions) in Lin-gang Special Area will be included and classified in a database to enable precise policy implementation, priority in support, and combined support. A professional service team will be set up to assist enterprises (institutions) in the database in applying for State-level, Shanghai municipal or Lin-gang
Special Area supportive policies for various resources (including improving land use efficiency, etc.), finance and taxation (including income tax, investment and financing, listing incentives, etc.), investment promotion and enterprise introduction (including enterprise settlement, headquarters economy, etc.), human resources (including talent introduction, training, housing/rental subsidies, medical insurance, children's schooling, other incentives and subsidies), industrial progress (including breakthroughs in key core technologies and products, industrial capacity improvement, etc.), production-education integration (including industry-university-research cooperation, skilled personnel training, etc.), scientific and technological innovation (includingfunctional platforms, R&D subsidies and incentives, etc.), subsidies for R&D premises, international air traffic rights, internationalair services, and culture and tourism services.
"Aviation+” core industries:Aircraft general assembly and core spare parts: general assembly of passenger airliner, structural parts, electromechanical system, interior components and seats, compound materials, standard parts, etc.
"Aviation+" pillar industries:Powertrain: powertrain assembly, nacelles, core spare parts, new materials, power control system, and power experiments for aviation, aerospace, high-speed railway, metro, ships, and automobiles.
Electronics: core processing system, display system, airborme maintenance and fly data record system, comprehensive monitor system, communication system, navigation system, etc.
Supply chain & logistics: Asia-Pacific supply chain management center, bonded logistics of core parts, transit of international goods, international distribution and delivery, cold-chain logistics, bonded processing, etc.
Industry Overview:
Smart connected new energy vehicle is a pillar industry in Lin-gang Special Area. Starting from 2007, leading car companies has set up projects in Lin-gang, such as the SAIC-branded vehicle and its new energy vehicle, Benz remanufacture, and Yanfeng KSS. Along with them, a large number of supportive companies in the upstream or downstream of industrial chain also established in Lin-gang, forming a whole industrial chain with complete functions. The clustering effect of automobile industry in Lin-gang starts to take shape. In 2018, the vehicle of EV31 project of SAIC Maxus hit the road, making an important addition to the new energy vehicles manufactured in Lin-gang. In the same year, the electric vehicle giant in the world, Tesla, announced its plan to open a factory in Lin-gang industrial zone, which is not only the largest foreign-investedmanufacture project in the history of Shanghai, but also the first project in China after it lifts the restriction of foreign shareholding in electric vehicles. In 2018, the total industrial output of automobile OEM and spare parts in Lin-gang reached 38 billion yuan.
In Lin-gang Special Area, the development of new energy vehicle is already a national strategy. Thanks to top players such as Tesla and SAIC Roewe, the area is highly active in investment attraction across the industrial chain, and it is negotiating with many potential companies. Established Chinese brands, top intemational brands and nascent brands all flourish in this place. The production capacity of completed projects keeps growing, the construction of ongoing projects is accelerating, and the siting and registration of projects in the pipeline also speeds up. A world-class industrial cluster for new energy vehicle is in the making. In the next 5 years, annual vehicle production in Lin-gang will reach 900,000, with a yearly industrial output of 200 billion yuan. In terms of the innovation and industrialization of smart connected vehicles, Lin-gang has built a comprehensive demonstration zone for smart connected vehicles. The close testing and experience zone for smart driverless connectedvehicles covers 7 km². The phase 1 of open testing road for driverless vehicles stretches 26.1 km, and it can simulate traffic conditions for expressway, urban roads, rural roads, logistics and warehouse scenarios. Building on the comprehensive demonstration zone for driverless cars, Lin-gang Special Area has attracted a large number of famous high-tech companies in the industry, such as Horizon Robotics, Stratosphere, TrunkTech, and Tu Simple.
The infrastructure for smart connected new energy vehicles is also improving. In terms of the logistics infrastructure for automobile trade, Shanghai South Port, a type-1 open port in China, handled the loading and unloading of 400,000 vehicles in 2018, ranking among the top 6 in the country. In Lin-gang Logistics Park and the land area of Yangshan Bonded Port, well-known automobile companies including BMW, Volkswagen and Porsche have set up their Asia-Pacific distribution centers, and a large number of shipping, logistics, and trade companies are there to provide related services, such as Maersk.
At present, in addition to the assembly plants of SAIC Roewe, SAIC Maxus, and Tesla, there are also many providers of automobile parts, such as Mercedes Benz, Novare NEV, and Yanfeng. A number of new projects will be established in Lin-gang very soon, such as the high-end
aluminum material of Aluminum Corporation of China, the electric drive project of CRRC, the assembly and logistic center of Saint-Gobain, SAS project, the car seat project of Lear Corporation, and the key structural part project of MS Autotech.
Investment Advantages:
Lin-gang Special Area will step up its support in policy, finance, and others, and focus more on future cars that are "smart, connected, and environment friendly". It will choose innovation projects with the strongest research ability and biggest application potential and promote the development of new energy vehicles and smart connected vehicles through the functional platforms linking different sectors and industries.
The smart new energy vehicle industry is developing in large scale in Lin-gang. With such a good momentum, Lin-gang will further stimulate the economic development of other areas and build a world-class cluster for new energy vehicles.
Companies can choose from a rich pool of standard workshops in Lin-gang Special Area. Projects go through the registration and approval process very fast because Lin-gang provides full life-cycle services. The planning of smart connected new energy vehicle industry focus on solving bottleneck issues in the key technologies. It will continue to improve the industrial chain, enrich the supply chain of auto parts, and enhance the competitiveness of the new energy vehicle industry.
Industrial Policies:
In terms of supportive policies, Lin-gang Special Area is the main battleground for Shanghai's effort to build a world-class automobile cluster. The 50-point Special Policy clearly listed vigorous measures such as the support to new energy and smart connected vehicle projects, the priority given to platforms, and the support for IPO and equity investment.
Investment Attraction Focus:
Key projects of smart and connected new energy vehicles of 4 major types: manufacture, application, service, and functional platform.
industries that bring breakthroughs in core technology and develop key sectors such as core chips, specialized techniques, key equipment, and basic materials. Marine power industry started early in Lin-gang, and it has already formed a complete industrial chain. However, Lin-gang still needs to make efforts to "localize" the core technologies for high-end equipment manufacture after it became a special area in the China (Shanghai) Pilot Free Trade Zone. A large number of high-end equipment corporations have come to Lin-gang Special Area, such as
Industry Overview:
Since its inauguration in 2003, the Lin-gang Base, aiming at "high-end manufacture and original design manufacture", has established a “6+1" industrial layout with new energy equipment, automobile and auto parts, core parts of ships, engineering machinery, civil aviation supply, and strategic and emerging industries. The Overall Plan for Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone clearly stated that Lin-gang will establish clusters of frontier
SWS Offshore, CSSC-MES, CME WARTSILA, Shanghai Electric Nuclear Power Equipment, and SANY, laying a solid foundation for the industrial cluster. Lin-gang is one of the two core areas in Shanghai to develop marine economy. It focuses on high-end equipment manufacture such as offshore drilling equipment and deep-sea industry. Starting from 2018, the high-end manufacture and strategic emerging industries are coming to Lin-gang at a higher speed. Chinalco, China Transport Telecommunications and Information
Center, Institute of Engineering Thermophysics of China Academy of Sciences, and another 8 large-scale state-owned enterprises, research institutes or leading companies are registered in Lin-gang. They have focused on the bottleneck issues of key technologies, installed large science facilities, accelerated the process of industrialization, promoted the deep collaboration of the industry, improved industrial ecosystem, and build a vibrant industrial cluster.
Investment Advantages:
The ship and offshore engineering equipment industry in Shanghai has a layout of "two hubs and one belt", with one hub being the research and manufacture of high-end offshore engineering in Lin-gang, and the other the general assembly of ship and offshore engineering in Changxing Island. In 2018, Shanghai Offshore Manufacture Innovation Center was unveiled in Lin-gang, which has an operation model combining features of a company, an alliance, and a fund. The Center gathers industrial resources, facilitates cooperation and innovation, and aims to make breakthroughs in the generic and bottleneck technologies of offshore engineering. It will boost and promote the overall quality of the marine engineering in China through the participation in the entire industrialization process, from technology innovation to transfer and application.
As one of the places with the highest concentration of marine engineering equipment manufacturers, Lin-gang has a number of famous companies in offshore equipment, forms a relatively complete industrial chain, and nurtures a batch of premium projects in deep-sea equipment and deep-water exploration. Smart manufacture is the trend and direction of industrial development. Lin-gang has built clusters of new energy equipment, large ship parts, automobile and auto parts, offshore engineering equipment, engineering machinery and equipment, civil aviation equipment, and remanufacture. In May 2018, Lin-gang announced its plan for the comprehensive demonstrative zone for unmanned systems in land, sea, and air, that is, for driverless cars, unpiloted ships, and drones. At present, a number of companies have already started technical validation in the experimental scenarios in Lin-gang.
In the 50-point special policy of Lin-gang Special Area, it is clearly stated that key projects in smart manufacture and high-end equipment will be prioritized in Lin-gang. Supportive functional platforms such as engineering research centers and key laboratories will be built in Lin-gang. Guidance will be provided to the establishment of key science academies, research institutions, standard setting companies, inspection and testing institutions, and metrology and measurement platforms. Companies are encouraged to cooperate with research institutes and other companies on the industrial chain to make innovation and build industrial innovation centers.
Target bottleneck technologies based on national demand for development, such as next generation IT technology, chips, Al, aerospace and aeronautics, laser, and other smart manufacture.
Industry Overview:
As one of the key projects of the comprehensive reforms in Pudong and a upscale representation of circular economy, remanufacture is attracting wider and wider attention. In 2012, the first remanufacture industrial park opened in Lin-gang, which laid the foundation for a national-level remanufacture industrial base. A number of remanufacturers are already registered and operational in Lin-gang, among them internationally famous brands such as Caterpillar, Mercedes-Benz part remanufacture plant of Daimler Group, Shanghai Yixin Remanufacture, and Boche Renewable Resources.
The General Plan for Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone announced the construction of a maintenance and green remanufac ture center facing the counties and regions along the Belt and Road Initiative, the establishment of a green certification and rating system, the support to the inbound maintenance and remanufacture of numerically-con trolled machine tools and engineering equipment in the comprehensive bonded area, and the improvement of the international competitiveness of high-end and smart remanufacture industry.
Investment Advantages:
Lin-gang Special Area boasts unique advantages in green remanufacture. It has a complete industrial chain. In addition to basic services such as standard workshops, logistics, policy interpretation and human resource management, it also provides special services that include the supply of raw materials, trusted quality control, technical support, centralized precleaning, and disposal of dangerous solid wastes.
Many heavy-weight projects can be found in Lin-gang, such as GE Aviation (China) Smart Manufacture and Remanufacture Innovation Center. The remanufacture industrial system is comprised of technological research centers (National Key Laboratory for Remanufacture, and National Engineering Center for Mechanical Product Remanufacture) and public services platforms (such as on-site training centers
and testing and qualification centers). Building on its industrial base, policy advantages, and technical support, Lin-gang is sparing no effort to create an industrial ecosystem for remanufacture industry with global influence, and provide endless driving force for the development of smart, low-carbon, and high-end manufacture.
Lin-gang is accelerating the speed of project attraction and base construction to build a national demonstration zone for import equipment remanufacture.
Continue to promote the concentration of major industrial projects in Lin-gang Special Area. Lin-gangSpecial Area will have a priority in having national industrialization programs and major projects undertaken by Shanghai, especially in areas such as civil aviation engine and gas turbine, high-end numerically controlled machine tool and its basic equipment, deep-water and ocean offshore engineering equipment and material, and high-end energy equipment. Transport equipment (metro transport, new energy vehicle, smart car), basic equipment (construction machinery), and key projects in strategic and emerging industries (next generation information technology) will be encouraged to locate in Lin-gang Special Area to further enhance its capacity for high-end manufacture and extreme manufacture. Encourage the clustering development of remanufacture industry. Provide facilitation measures for the inspection, quarantine, and customs clearance for inbound remanufacture in Lin-gangSpecial Area using the bonded policies for remanufacture. Establish a joint development mechanism between Lin-gang Special Area and municipal industrial park brands. Attract high-level projects to Lin-gang Special Area. The incremental benefit gained in Lin-gang will be sharedaccording to a predetermined ratio.
Remanufacture projects or innovation platforms in aviation engine parts, computer and telecommunications equipment, construction machinery, automobile engine, industrial surface preparation, and printing supplies.
Several Opinions on the Implementation of Prefereutial Polteies to Boost High-quality Development of Lin-pang Special Aren of the Chita (Slaughat) Pilot Free Irade Zone by CPC Shanghai Commnittee and Shanghai Mumicipal People's Goverunent
Industry Overview:
It is of great significance to the open economy in Lin-gang Special Area to benchmark its practices against international high standards, and accelerate the high-quality development of modern service industries.Lin-gang Special Area will fully release its institutional advantages in trade and investment facilitation, make good use of its openness in modern service sector, focus on the development of cross-border finance, new international trade, digital economy and other newly
emerged businesses, constantly enhance its ability to allocate global resources and factors, and become a model for international modern services and a modern service center with global influence.
The only dispute settlement organization for securities and futures in China, the first joint-venture financial management company in China, and other agencies are opening in Lin-gang. A number of domestic and international financial organizations and enterprises, such as Bank of China, are registered in the area. National Base for the Transformation and Upgrade
of International Trade (Automobiles and Auto Parts) and Shanghai Intemational Service Trade Demonstration Base are unveiled. A modern service system with rich business types, vibrant innovative activities, compact spaces, and complete functions is taking shape.
Investment Advantages:
According to the “Five Important Elements" positioning by President Xi and the requirement of the General Plan of Lin-gang Special Area by the State Council, Lin-gang Special Area, in addition to applying all the open and innovative measures of the pilot free trade zones in China, is accelerating the process of harmonizing its investment and trade rules with the most competitive FTZs in the world. It focuses on the collection and allocation of global high-end resources and factors, promotes the facilitation and liberalization of cross-border investment and trade, pilots more vigorous open policies and more stressful pressure tests, and builds a modern service cluster based in Shanghai, benefiting China, and facing the entire world.
Industrial Policies:
Study and publish special industrial policies to encourage the opening-up and innovation in finance and trade, in order to promote the clustering development of new businesses such as cross-border finance andnew international trade. Pilot innovative measures such as the streamlined settlement of cross-border RMB, cross-border transfer of domestic trade financing assets, and registration reform of foreign borrowing in companies with good track record. A modern
30-Point Policy for Finance:
On 14 February 2020, the PBOC (People's Bank of China), CBIRC (China Banking and Insurance Regulatory Commission), CSRC service system of "2+X" that centers on cross-border finance and new international trade is taking shape. Functional policies, fiscal support, tax breaks, and other supportive measures aim to ensure the proper development of premium companies and talents in Lin-gang. At the same time, key institutions and companies will receive tailormade support for their operation and development.
(China Securities Regulatory Commission), SAFE (State Administration of Foreign Exchange) and Shanghai Municipality jointly
issued Opinions on Further Accelerating the Construction of Shanghai International Financial Center and the Integrated Development of the Yangtze River Delta. The Opinion closely follows the "Five Important Elements" of President Xi and the requirement of the General Plan of Lin-gang Special Area, starts from its functional positioning and industrial
50-Point Policy for Finance:
On 8 May 2020, Lin-gang Special Area announced Several Measures to Comprehensively Promote the Financial Opening-up and Innovation in Lin-gang Special Area of China layout, pilots more open and facilitated financial policies, and lends strong support to Lin-gang to attract high-end resources and factors of finance, technology, and talent, and speed up the construction of a special economic functional zone with more international market influence and competitiveness.
(Shanghai) Pilot Free Trade Zone (50-Point Policy for Finance), which contains 5 important messages: First, comprehensively implement the opening-up of financial sector on all fronts, at deep levels and with high standards, with an effort to attract more foreign institutions. Second, further enhance the institutional innovation and pressure test of the open economy, with an effort to ensure the financial innovation faring well in the long run. Third, nurture domestic financial institutions and related agencies that are competitive in domestic and international markets for the allocation of financial resources, with an effort to make a name for local financial brands.
Fourth, establish and improve the ecosystem for finance to support real economy, with an effort to help companies thrive. Fifth, enhance the tailormade services to the financial institutions, with an effort to make financial resources stay in Lin-gang. The publication of Several Measures is a way to fully implement the "Five Important Elements" positioning by President Xi, the design and planning of the General Plan of Lin-gang Special Area, and the specific requirements in the 30-Point Policy for
Finance. It serves the opening-up strategy of China and brings Shanghai closer to its goal of becoming an international financial center. It is another major move to promote the financial opening-up in Lin-gang Special Area on deeper levels, in broader areas, and with stronger determination, and a vivid example of serving national strategy through cooperation between central and local governments.
Investment Attraction Focus:
Implement innovation-driven development strategy. Encourage the concentration of premium resources and the development of high-end service industries including but not limited to modern finance, wealth management, fintech, headquarters economy, digital trade, cross-border e-commerce, and professional service. Constantly improve the functions of Shanghai international financial center and international trade center.
Commercial Policies:
Several Policies to Promote Commercial Development in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone is formulated to promote the clustering and sustainable development of commerce, attract and nurture premium commercial entities, enhance the commercial quality and capacity, create a sound commercial business environment, and build a modern city with open innovation, smart ecology, city-industry integration and livable environment in Lin-gang Special Area, according to policy documents such as the General Plan of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, Administrative Measures
Cultural Policies:
Several Policies to Promote the Development of Cultural Industry in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone is formulated to expand the support to the development of cultural industry in Lin-gang Special Area, according to policy documents such as Administrative Measures of Lin-gang Special Area of China (Shanghai) Pilot Free
Tourism and Sports Policies:
Several Policies to Promote the High-quality Development of Tourism and Sports Industries in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone is formulated to promote the high-quality development of the tourism and sports industries, nurture projects with new business
of Lin-gang Special Area of China
(Shanghai) Pilot Free Trade Zone, and Several Opinions on theImplementation of Preferential Policies to Boost High-quality Development of Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone.
Support the construction of food
markets and basic commercial facilities in communities to solve the daily needs of local inhabitants andmake their life easier. Support the attraction of
high-quality commercial brands at
various levels to upgrade the overall commercial environment in Lin-gang Special Area.
Trade Zone, and Several Opinions on the Implementation of Preferential Policies to Boost High-quality Development of Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone.
Support the development of cultural industries in Lin-gang Special Area, such as filmmaking, art performance, digital culture, artwork, creative
models and new business types, organize high-standard and professional activities, enrich urban functions, improve the quality of life, cooperate with intermational participants, and build a modern city with open innovation, smart ecology, city-industry integration and livable design, publication, and culture equipment manufacture. Promote the integrated development between art and tourism, sports, science & technology, commerce, finance, and trade. Build a cultural industrial system and market system with influence and competitiveness in international markets.
environment in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as "Lin-gang Special Area"), according to policy documents such as the General Plan of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, Administrative Measures of
Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, and Several Opinions on the Implementation of Preferential Policies to Boost High-quality Development of Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone. Support companies and institutions in tourism and sport industries or companies and institutions providing related services that have their venues of business registration, actual operation and tax account in the City-Industry Integration Zone (386 km²) of Lin-gang Special Area, as well as those major projects and brand activities related to tourism and sports industries that are approved to be included to the scope of support. Further accelerate the development of tourism and sports industries in Lin-gang Special Area. Create new
landmarks for the international metropolis. Form new models for high-quality life. Gather new resources for tourism and sports industries. Inject new impetus to leisure tourism. Improve the overall environment. Build a cluster of tourism and sports industries with vitality, openness, exquisiteness, and eco-friendliness.
Support the attraction of tenants with high-quality and new business type
Support the construction of supportive commercial facilities for business streets, neighborhoods, and industrial Parks.
Support the construction of regional commercial centers.
Support the improvement of commercial environment.
Encourage the investment in featured and high-quality tourism and sports projects.
Reduce the finance cost for companies. Provide subsidized loans to projects.
Support the import of high-end foreign entertainment and fitness equipment.
Support tourist sites to apply for national A-level scenic spots.
◆Support the development of film-making industry. Support market entities to invest in film and television production bases, post-production studios, application and development of visual effect technologies, and supportive facilities to large-scale film and television activities.
Support the development of art performance industry by encouraging the construction of performance venues and the promotion of new business models. Nurture premium productions. Create a sound industrial chain. Support the development of digital culture industry by facilitating the creation and promotion of animations, cartoons andgames by Chinese studios, and the establishment of famous brands for local e-sport teams.
Support the development of artwork, creativity and design, and publication industries. Support the international cultural trade and enhance financial service to art industry.
Investment Advantages:
In 2020, Lin-gang Special Area published a series of favorable policies in commerce, culture, tourism, and sports, which played a large role in promoting the clustering and sustainable development of commerce, and attracting and nurturing premium commercial complexes. The influx of industries and talents, the high-speed development of tourism, and the construction of a livable integrated city all provide firm support to the commer-
cial boom.
At present, the main commercial resources and the basic commercial facilities in the City-Industry Integration Zone (386 km²) of Lin-gang Special Area are found in 6 areas: No. 3 Ring
Road around Dishui Lake, residential area along Shengang Avenue, university area, Luchao Port area, Nicheng Town area, and Shuyuan Town area. Commercial clusters start to take shape. Lin-gangSpecial Area now has 5 middle- to large-scale commercial complexes and 26 hotels. Lin-gang has organized many professional sports events, such as UIM-ABP Aquabike World Championship, OP Regatta Invitational Tournament, China International Women's Match Race,
UIM XCAT PowerboatingWorld Championship, and other leading games. Other activities are also widely participated in Lin-gang, such as the New Year Running around Dishui Lake, SunshineMusic Festival, Dishui Lake Triathlon, and Lin-gang Ocean Festival. In 2018 and 2019, Lin-gang Special Area organized two sessions of World Laureates Forum in a roll. With innovation in its blood, Lin-gang Special Area will become a cradle for technological innovation and creative ideas,
and an exchange platform for scientists with international influence. Lin-gang Special Area will become a sub-center of Shanghai. As its development is gaining traction, more and more leading companies in China and the rest of the world are coming to this area. In the future, more commercial, cultural, and tourist projects will locate here. Lin-gang is emerging as a destination for travel and consumption.
Investment Attraction Focus:
The downtown Lin-gang is working hard to attract modern services (including travel, conference, exhibition, culture, creativity, commerce, trade, and finance) with its high concentration of elements, city-industry integration, and demonstrative role of leading industrial development. It inherits
Shanghai's city character of openness and inclusiveness, enters gracefully onto the global stage, embraces international diversity, creates colorful life, and allows the blending of various cultures. Lin-gang Special Area integrates the cutting-edge technologies with industries, art, and life,
creating an experimental field for future technologies. Through the exchanges between the east and the west, the traditional and the futuristic, Lin-gang has demonstrated its unique charisma and characteristics, promoted cultural development, and catalyzed the prosperity of local economy.
Complete commercial facilities
to improve business upgrade urban capacity
to nurture city character, showcase city spirit
Quality cultural and creative contents
Fashionable sports activities
to encourage healthy lifestyle, create new trends
Rich and colorful tourist attractions and routes
to build a tourist city, share scenic environ ment
YANGSHAN FREE TRADE ZONE
The first special comprehensive bonded area in China
Yangshan Free Trade Zone locates in the south of Shanghai, along the East China Sea. In January 2020, the State Council approved the establishment of Yangshan Free Trade Zone (25.31 km²), which covers 3 areas (in 5 land plots) namely Luchao Port, Xiaoyangshan Island, and southern part to Pudong
International Airport. On 12 May 2020, Yangshan Free Trade Zone (Phase 1) passed the joint acceptance inspection of 8 miniseries such as the General Administration of Customs and became the only special comprehensive bonded area among 151 customs areas in China.
Yangshan Free Trade Zone "opens the first line and controls the second line". Goods can be imported and exported freely on national border (first line) and go through quarantine and inspection inside the bonded area Goods that are imported from or exported to outside the bonded area (second line) only need to make customs declaration on one side. No customs account book is needed inside the bonded area. Goods can be transported without customs supervision within the bonded area. The import and export in the bonded area are calculated separately. If the goods need to be transport to another customs area, it only needs to declare on one side.
Planning of Yangshan Free Trade Zone:
Yangshan Free Trade Zone benchmarks itself against the internationally recognized and most competitive free trade zones in the world, follows the "Five Important Elements” required by President Xi, bases on the positioning of "Greater Shanghai along the coast and free trade port with both seaport and airport", aims at building a free trade port with intentional competitiveness and influence, harmonizes its rules with free trade zones/ports in the world and high-standard international trade and investment agreements, implements open policies and institutions that are fairly competitive in international market. It will become a world-famous area of best practices for the liberalization, facilitation, and integration of international investment, trade, services, an important functional zone to achieve the goals of “Five Important Elements” and leading
high-standard opening-up and high-quality development in China, and a main battleground for Shanghai's initiative to become an international economic, finance, trade, shipping, and scientific innovation center.
Going forward, Yangshan will continue to enhance basic functions for bonded logistics, bonded processing and manufacturing, and bonded services, further expand functional innovations, focus on international businesses for logistics, trade, offshore finance, and R&D, and build an integrated development zone for cross-border finance. It will also construct a pilot zone for international shipping service by attracting upscale shipping factors and functions, and an innovation demonstration zone for civil aviation by developing cutting-edge and high value-added tech industries such as civil aviation manufacture. At the same time, it will also nurture key industries such as intemational supply chain management, international high-end manufacture and related services, and cross-border comprehensive services, and build the international LCL center, internationaldistribution and delivery center, intemational order processing center, global sales and service center, cross-border digital trade center, global maintenance, repair and green remanufacture center, high-end R&D and manufacture center, international financial asset exchange center, intemational commodities spot trading center, and international finance lease exchange center.
Integration of port and bonded area
Implementation of
latest standards
Consistency with
high international standards
Establishment of an integrated information management and service platform
Four special features of Yangshan Free Trade Zone
Integration of port and bonded area
Phase 1 of Yangshan has a fenced area of 14.27 km2, which includes Luchao Port (6.36 km²), Xiaoyanghsan Island (7.91 km²), and 2 land plots connected by Donghai Bridge. The operation of bonded area and port is fully integrated in a closed area.
Implementation of latest standards
Phase 1 fenced area strictly follows the standards set in "Rules on Setting the Basic and Regulatory Facilities in 2019”. Compliance conversion and upgrade for fences, roads, CCTV cameras, perimeter alarm system, check points, and buildings for offices, customs supervision, and special technologies is finished.
Consistency with high international standards
Aiming at a first-rate smart park in the world, Yangshan adopts latest technologies, such as drones, 5G, loT, and all-in-one poles, to enhance its smart supervision. In particular, it took reference from the inspection center in Netherlands, and overhauled its check and inspection platforms to make them integrated, self-contained, high-standard, and operational 24/7.
Establishment of an integrated information management and service platform
The core functions of the platform include coordinated supervision, risk early waming, e-government service, and value-added service. It aims to become an electric fence on multiple dimensions, implement accurate, smart, and smooth supervision, and enhance supervision capacity through transparent data. The platform now has 9 modules for 53 functions. It has combined 1,282 items and 17,659 information sections from 67 authorities or departments. Its data are shared with 54 companies in Yangshan, 1 company outside the bonded area, and 15 banks. It can meet the demands for coordinated supervision from customs, market supervision, tax, and foreign exchanges.
Four special features of Yangshan Free Trade Zone
I.Highly opened-up policies and institutions
A tax regime and tax policies that are very competitive interationally is implemented, giving bonded or tax-free treatment to inbound goods to Yangshan (except from those provided separately in laws, regulations and existing policies). Domestic goods from outside Yangshan is deemed as export when they reached the bonded area and is granted export rebate. The waiving of VAT and excise tax for trade and service between companies in Yangshan is carried out. Also, companies in Yangshan have the freedom of operation to carry out businesses such as transit, container consolidation, warehousing, processing, manufacturing, trade, exhibition, research and development, remanufacturing, inspection and maintenance, distribution and delivery, etc. In addition, key companies in the core production or R&D links of areas such as integrated circuits, artificial intelligence, biomedicine, and civil aviation can apply for special customs policies such as "one assessment for several imports" for biopharmaceuticals, bonded supervision for the entire group, customs supervision of finance lease outside Yangshan, if they are registered in Lin-gang Special Area but outside Yangshan Free Trade Zone.
Il. Free and facilitated supervision model
According to the General Plan of Lin-gang Special Area, in addition to implementing all policies for the special comprehensive bonded area, Yangshan Free Trade Zone will also abolish unnecessary requirements for trade supervision, licensing, and procedures. Instead, it will adopt trade facilitation policies that are "fully open on first line, and highly liberal on second line". For example, the import and export permit will be suspended to the largest possible extent, giving clearance to all imported and exported goods on the national border (first line). The customs account books will not be maintained in the bonded area, and goods can be transported freely without customs supervision. Goods going into or out of the bonded area (second line), or goods to be transport to another customs area only need to make customs declaration on one side. The import and export in the bonded area are calculated separately.
Ill. Special functional positioning of integrated onshore and offshore development
According to the “Five Important Elements" by President Xi and the positioning of "Greater Shanghai along the coast and free trade port with both seaport and airport", Yangshan strives to build a free trade port with the strongest intermnational competitiveness and influence, harmonizes its rules with free trade zones/ports in the world and high-standard international tradeand investment agreements, and implements open policies that are relatively competitive in international market. It will become a world-famous area of best practices for the liberalization, facilitation, and integration of international investment, trade, services, an important functional zone to achieve the goals of "Five Important Elements" and leading high-standard opening-up and high-quality development in China, and a main battleground for Shanghai's initiative to become an international economic, finance, trade, shipping, and scientific innovation center.
IV. International industrial chains in special sectors Yangshan will further open key industries that are required by national strategies, in demand on international markets, but not yet practical in other places, such as telecommunications, insurance, securities, scientific research and technological services, education, and health care, implement open policies and institutions that are fairly competitive in international markets, and gradually elevate the investment and trade liberalization and facilitation to the highest levels in the world. It will also center on improving the allocation of global resources and factors, focus on international businesses for logistics, shipping, R&D, manufacture, offshore trade, and offshore finance, promote the clustering of industrial chains, nurture several featured industries with an output of trillions of yuan, hundred billions of yuan, or ten billions of yuan, continuously enhance the industrial capacity in the region, and beef up the regional creativity and competitiveness.
Investment Advantages:
Yangshan Free Trade Zone is the only special comprehensive bonded area in China. According to the General Plan, in addition to implementing all policies for special comprehensive bonded area, Yangshan Free Trade Zone will also abolish unnecessary requirements for trade supervision, licensing, and procedures. Instead, it will adopt policies and institutions that allow more trade liberalization and facilitation. Compared to other customs areas such as ordinary bonded areas, bonded logistic parks, export processing zones, bonded port areas, comprehensive bonded areas, cross-border industrial parks, and border economic co-operative zones, Yangshan Free Trade Zone boasts following advantages:
1.Policies and institutions are more liberalized and facilitated. General Administration of Customs stipulated in the Customs Supervision Measures in Yangshan Free Trade Zone that new customs supervision measures are applied in
Yangshan. Goods can be imported and exported freely on national border (first line). Goods imported from or exported to outside Yangshan (second line) only need to make customs declaration on one side. No customs account book is needed inside the bonded area. Goods can be transported without customs supervision within the bonded area. Compared to measures applied in comprehensive bonded areas (bonded port areas), which require registration and quarantine at first line, customs declaration at second line, maintenance of customs account book, and declaration on both side when transporting inside the bonded area, trade in Yangshan is significantly liberalized and facilitated. 2.The effect of guiding industrial functions is evident. Yangshan Free Trade Zone is adjacent to two major ports: Yangshan Deep Water Port and Pudong International Airport. It has a perfect location and rich regional functions. Clustering effect in trade, logistics, shipping service, and
aircraft manufacture has come into play in the original Yangshan Bonded Port Area and COMAC Pudong Base. In the future, Yangshan Free Trade Zone will forcefully develop international supply chain management, international high-end manufacture and related service, and cross-border comprehensive service, and build the integrated development zone for cross-border comprehensive service, the pilot zone for international shipping service, and the innovation demonstration zone for civil aviation. Its industrial functions will be unparalleled among its peers in China, providing much guidance to industrial development. Industrial collaboration between Yangshan and surrounding areas offers many advantages. In order to support and
promote the high-quality development of key industries and companies with international competitiveness in Lin-gang Special Area, the General Administration of Customs stipulated that key companies in the core production or R&D links of areas such as integrated circuits, artificial intelligence, biomedicine, and civil aviation can apply for special customs policies suchas e-supervision, new methods of inspection and quarantine, streamlinedmanagement of customs account book, and bonded supervision for the entire group, if they are registered in Lin-gangSpecial Area but outside Yangshan Free Trade Zone, so that the favorable policies and industrial functions in Yangshan Free Trade Zone can benefit other parts of Lin-gang as well.
Industries in Yangshan Free Trade Zone:
Yangshan Free Trade Zone is the only "comprehensive pilot zone for international shipping" in China approved by the State Council. As an integral part of Lin-gang Special Area, Yangshan Free Trade Zone has the special geographic advantage of the Yangshan Deep Water Port and more liberalized and facilitated trade policies and institutions. A featured and competitive industrial cluster is already established, which includes Asia-Pacific distribution, automobile and auto parts, food and cosmetics, commodities, cross-border e-commerce, bonded maintenance and repair, bonded R&D, bonded ship supplies, offshore transit trade, and international transit and LCL.
Featured industries:
Asia-Pacific Distribution Center
Yangshan Free Trade Zone actively implements a series of pilot programs for trade facilitation, such as free import and export on first line, single-side declaration on second line, no need for customs account book, and transportation without customs supervision, which help to unleash the potential of industrial clusters, and enhance its position as a hub on the Asian supply chain. At present, key tenants of the AP Distribution Center include Stanley Black & Decker, Dannon, Lego, Ikea, and Carrefour.
Automobile and Auto Parts
Yangshan Free Trade Zone has more than 20 distribution centers of automobile or auto part companies on the Global Fortune 500 list. At the same time, it is also the Yangtze River Delta Demonstrative Platform for Imported Auto Parts, and Credit System Platform for Auto Part Companies in China (Shanghai) Pilot Free Trade Zone. Related tenants in Yangshan include BMW, Volkswagen, Volvo, Chrysler, Ford, Fiat, Valeo, etc.
Food and Cosmetics
Yangshan Free Trade Zone has a large supply of cold chain facilities, including refrigeration storage of more than 130,000 m2, labs for imported food testing, and specialized warehouses for imported food and cosmetics. Imported food at Yangshan Port accounts for around 90% of Shanghai Ports.
Testing and Repair
Yangshan Free Trade Zone is an important hub for bonded maintenance and repair parts of international ship. Tenants in the industrial park include MAN Group, CSSC Service (CSSC Marine Service Co. Ltd), SCIC (China Shipbuilding Industry Company Limited), etc. It has also established a public supply platform for bonded ship parts, as well as bonded warehouses, testing and repair facilities and
distribution centers for ship parts.
Cross-border E-commerce
Yangshan Free Trade Zone is a Shanghai Demonstration Zone for Cross-border E-commerce. It was awarded "the best demonstration zone for cross-border e-commerce" by Shanghai Cross-border E-commerce Association."Yangshan Stocking Model for Cross-border E-commerce" made breakthroughs in many policies, and its first-mover advantage brings a highly concentrated development of the business. JD Worldwide, Dannon Milk Powder, SIPG Mall, Amazon, and many other projects are registered in theport area, making Yangshan Free Trade Zone an important industrial base for bonded import of cross-border e-commerce in Shanghai.
Commodities Trade
There are more than 310 commodity metal companies in Yangshan, with a combined registered capital of more than 10 billion yuan, trade volume of more than 200 billion yuan per year, and business covering the entire industrial chain of international trade. Yangshan has built specialized bonded warehouses for commodities (250,000 m²) and other facilities for logistics, distribution and storage. It also has featured functions such as bonded delivery of futures, Yangshan Copper Premium, and public announcement of shipping bills.
Bonded Research and Development
The bonded R&D platforms in Yangshan Free Trade Zone enjoys the advantages of Lin-gang Special Area such as favorable policies for high-end manufacture, the unique geographic location of Yangshan Deep Water Port, a high concentration of service providers for bonded R&D which has "both ends staying overseas”. They help to boost the hi-tech industries in Lin-gang Special Area.
THREE FEATURED INDUSTRIAL PARKS
Blue Bay World | Oriental Semiconductor Hub | Big Aircraft Park
Blue Bay World
Blue Bay World, located at the west gate of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, is a new generation industrial park co-developed by Lin-gang Group, Bright Food Group, and Fengxian District Government. It has an initial planned area of 17.04 km2, which later expanded to 45 km².
As an integral part of Lin-gang Special Area, Blue Bay World is an important place for the development of high-end and frontier industries and the pilot area for biomedicine industry. It has nurtured industrial clusters for life science and technology, new energy and smart connected vehicle, and high-end intelligent equipment. The park is listed on the Shanghai Industrial Map for New Energy and Smart Vehicle, the Three-year Action Plan for the High-quality Development of Biomedicine Industry in Shanghai (2018-2020) and selected as one of the 26 featured industrial parks in Shanghai.
Industrial On a planned area of 4.5 km2, Blue Bay World spares no effort to build a cluster for international
Features: life science and technology industries that has combined functions of R&D, production, testing and demonstration. It focuses on the near-to-middle term commercialization projects of biomedicine, and has planned high-end intemational health care services, bonded R&D of biomedicine, and intemational hospitals for clinical research in its area.
Industrial Ecosystem:
It has attracted many leading bio-tech companies, such as Tellgen, TopAlliance, Wuxi AppTech, Celgen Biopharma, OBiO, Dragon Sail Pharmaceutical, and Zhenge Biotech, with a combined land use of nearly 500 mu, building area of 400,000 m2, total investment of nearly 8 billion yuan, and an estimated output of 26 billion yuan. In addition, Blue Bay World has attracted more than 70 industrial projects from a dozen of countries such as the US, Germany, France, Japan, Netherlands, and Brazil, and has nurtured a life science and technology industry with a solid foundation on biomedicine.
Core Policies:
“1+4” policies of Lin-gang Special Area, the Special Development Fund for Life Science and Technology Industry.
