2. Beijing Economic Technological Development Area (BDA)
Introduction
Beijing Economic Technological Development Area (BDA), approved by the State Council on August 25, 1994 enjoys preferential polices and employs a new administrative system confirming to international standards.
The development area's Admonistrative Commission manages on behalf of the government, and is entrusted by the municipal authority to examine and approve projects.
The city government plans to constantly improve the area's investment climate and develop its advantages. So far, the United States, Japan, Germany, Britain, France, Belgium, Sweden, Finland, Italy, Switzerland, Luxembourg, the Netherlands, Canada, Australia, New Zealand, Malaysia, Singapore, the Republic Korea, Thailand, Myanmar, Turkey, Israel, South Africa, Hong Kong , Macao and Taiwan have all invested in the development area.
Environment
The Beijing development area (BDA), in southwestern suburbs, is to the west of the starting point of the Beijing-Tianjin-Tanggu Expressway, and to the south of a palnned Fifth Ring Road. BDA is 7 kilometers from the south Third Ring Road, 16.5 kilometers from downtown Tiananmen Square, 30 kilometers from the Capital International Airport, 10 kilometers from Beijing railway freight terminal and 140 kilometers from the port of Tanggu in Tianjin.
Prospecting has demonstrated the area fit for industrial and civilian construction projects. The area's geological conditions include 80-180 meter bedrock, with a smooth surface and no fracture zone. The earth has an endurance of about 15 tons per square meter, the frozen soil has a depth of 0.85 meters. Groundwater is found at depth of 6-11 meters, and causes no corrosion of concrete. The area has a continental monsoon climate of the warm temperate zone, and the annual average temperature is 11.5 degree Celsius, within the maximum average 26 degrees and the minimum average 6 degree below zero. The annual average of wind velocity is 2.6 meters per second and the annual average precipitation is 580 millimeters.
Infrastructure
Water: The area's water supply comes from the municipal water supply pipeline network, with water pressure at 1.8 kilograms per square centimeter and water quality up to State standards for portable water.
Electricity: BDA has dual-feed power supply. Users are exempted from surcharges for expansion in power supply. The inlet voltage at user's end is 10 KV (+/- 0.5%), and the frequency is 50 HZ (+/-0.2%).
Gas: BDA supplies quality pipeline natural gas for users, with the available pressure at 0.8 kilogram/per square metter and the heat value at 8,500-10,000 Calories per cubic meter.
Heating:
BDA plans to have six central heating plants in the 18-square kilometer area. Currently there is one plant with a capacity of 175 tons per hour, providing steam, heat, hot water for domestic use and heat source for absorption refrigeration.
Telecommunications;
The telephone exchange now has 100,000 lines, hooked via fiber-optic cables with the municipal telephone network. Wireless and microwave communications are also available. Telecommunications services include domestic and international calls, telegraph, fax, wireless communication, video phone and data transmission.
Sewage:
BDA's sewage system separately drains sewage and rainwater. Its rainwater is discharged into the Liangshui River and Dayangfang Canal. Sewage is first collected and treated at sewage treatment plant, and then drained into Liangshui River.
Transport:
There are three roads leading to the downtown area, and a BDA-to-dowmtown light-rail transit system has been included in the municipal development plan for 2000.
Guidelines
BDA encourages development of high-tech enterprises, export-oriented firms and foreign-funded companies. BDA welcomes projects of high economic efficiency, high added value and high technology content. Prefered projects should be energy and water efficient, requiring less land to build and non-polluting.
Projects in the following fields are especially welcomed:
SHD optical communications system, cross connection system, manufacturing of network management equipment, advanced electrical and electronic technologies and products.
Energy-saving products and new electrical home appliances.
Motor vehicles, automatic components and automotive electronics.
Digital/intelligent precision instruments and devices, liquid crystal display technology and office automation equipment.
Precision mechanical/hydraulic/pneumatic parts and components, optoelectronic technology, optical-mechanical-electronic integrated equipment, industrial automation and numerical control system.
Precision medical electronics, clinical diagnostic equipment, new Chinese and Western medicines and biomedical engineering projects.
Fine chemicals, new materials, new energy resources, life science and bio-engineering projects and laser technology products.
Ecological and environmental protection technologies and products.
Space sience and aerospace technologies and products.
High-end and brand-name light industrial and textile products that meet market need.
Export products with high added value:
Urban power, heat and water supply projects, refuse and sewage treatment projects.
Catering tourism, real estate, culture and education, health research and development, computer software development and information consulting service.
Preferential tax
Productive enterprises with foreign investment in BDA ( Sino-foreign joint ventrues, Sino-foreign cooperative ventures and wholly-foreign-funded firm) will enjoy a business income tax of 15%.
For a company with an operation term of more than 10 years, the business income tax is exempted in the first two years and cut by half (7.5%) in the following three years beginning from the profit-making year.
Local income tax (3%) is exempted in the first five years and cut by half in the following five years.
After the business income tax holidays expire, business income tax is levied at a rate of 10% on any enterprises with its exports in the year accounting for more than 70% of its annual output value.
After the business income tax holidays for a technologically-advanced enterprise expire, the business income tax may be held at a preferential rate of 10% for another three years, depending on recognition of technological advancement.
Business license
To set up in BDA, application should be made to the Economic Development Bureau.
Sino-foreign equity joint venture or cooperative joint ventrue:
The following documents are needed:
1. Project proposal ( in place of feasibility study report)
2. Document of approval from the environmental protection department.
3. Business license, bank credit report and certificate of authorization from Chinese partner.
4. Business license, bank credit report, certificate of authorization, testimonial of the corporate representative and certificate of authorization from the foreign partner.
5. Contract and constitution of the joint ventrue.
6. A list of board of directors, their certificates of appointment and credentials.
7. Certificate of use of the site of operation or land.
8. Notice on approval of corporate name registration.
9. Other documents necessary for certificate approval.
If the above-mentioned documents fully confirm, the project proposal, contract and constitution will be approved, and the Certificate of Approval of Foreign-Funded Enterprises and Corporate business License will be issued.
Wholly foreign-funded enterprises:
The following documents are needed:
1. Feasibility study reprot.
2. Constitution of the enterprise.
3. Credit report from a bank.
4. Form of registration of the corporate representative.
5. Document of approval from the environmental protection department.
6. Certificate for use of the site of operation or land.
7. Certificates of appointment for the members of the board of directors.
If the above-mentioned documents fully confirm, the project proposal, contract and constitution will be approved, and the Certificate of Approval of Foreign-Funded Enterprise and Corporate Business License will be issued.
registration procedures
Investors can begin business operation after:
* opening a bank account
* inspection of capital
* examination by the economic and trade commission and registration at the administration for industry and commerce.
* registration for taxation, finance, customs,management of foreign exchange and statistical work
Except for registration for management of foreign exchange, all the procedures can be completed within BDA.
Service institutions
* Economic Development Bureau
Investment consulation, negotiations and project examination and approval.
* Government Department
Planning, Land and Environmental Bureau, Bureau of Construction, Beauru of Personnel and Labor, Administration for Industry and Commerce, Sub-bureau of State Taxation, Bureau of Finance, Customs.
Banking Institutions
Bank of China, China Construction Bank, Agriculture Bank of China, and Industrial and Commercial Bank of China.
Other Service Institutions
Beijing Economic and Technological Investment Development Corp., Service Center for Foreign Investors, Employment Service Center, Social Insurance Center, Insurance Company, Law Office, Accountants Office, Water Supply Company, Bureau of Power Supply, Heat Supply Center, Post Office, Natural Gas Company, Import & Export Company, and Commercial Center.
Support Facilities
* International hospital:
Beijing Toronto International Hospital in BDA is the first international hospital set up in China since the founding of the People's Republic of China in 1949, and the first comprehensive international hospital established and operated in line with international standards.
International School:
Yewchung International in BDA is an affiliate of Yewchung Education Foundation of Hong Kong. After 60 years' development, the foundation now has 11 affiliated schools, including seven in Hong Kong, one in the United States, and two in Shanghai.
To help meet the needs for education from economic growth in the city and especially in BDA and improve BDA's investment climate, Yewchung Education Foundation established this school in BDA in September 1995, with support from the municipal government and approval by the municipal education commission.
The school offers bilingual courses linked to programs in various education systems in the world for children of foreign citizens, so as to enable them to continue their education in other countries smoothly.
* Residential and recreation facilities
Of the residential quarters, Evergreen Garden Villas and King Hero City Gardens are the most representative. Evergreen offers 100-odd villas in five styles, including one-family, two-family and multi-family ones, ranging from 250-450 square meters, and an underground garage with twin packing lots. First-class building materials were used in the villas, including imported bathroom utilities. Within the villas area are the BDA Hotel and Commercial Club. King Hero offers several hundred apartments in five-story and 16-story buildings. Lumingyuan, another residential quater, offers the cheapest housing in various styles in Beijing. The 36 hole golf course in BDA covers an area of 138 hectares, plus a multi-functional health club, it opens round-the-clock, catering BDA residents'needs for recreation.
* International Exchange Center:
BDA International Exchange Center includes an international convention center, sports and recreation- bowling, tennis, mock golf, badminton, table tennis, billiards, and KTV-and accommodation-luxury hotel, digital telecommunications, satellite TV, bar and fastfood.
Restaurants and shops
BDA has Chinese and Western restaurants.They also offer prepared meals and take-outs for employees.A world-class supermarket and shopping center are now under construction.
How to go
Go along the South Third Ring Road, turn to the Beijing-Tianjin-Tanggu Expressway. Exit at the first exit (Dayangfang Exit). Drive 300 meters to the west and turn left.
Regarding the site for your investment, before you make a decision that you may later regret, do consider us:
Beijing Development Area- the right place for your wise choice.
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1.Zhongguancun High-Tech Zone