Guo Ban Han [2010] No. 128

Relevant departments of the State Council,

The Plan for the Division of Labor of Departments on Implementing Several Opinions of the State Council on Futher Handling Well the Utilization of Foreign Investment (hereinafter referred to as the Plan for the Division of Labor), which has been approved by the State Council, is hereby printed and distributed to you, and please carry it out seriously.

Relevant departments shall earnestly carry out and implement the spirit of the Several Opinions of the State Council on Futher Handling Well the Utilization of Foreign Investment (Guo Fa [2010] No. 9), specify responsibilities, strengthen leadership, fullfil their own duties and firmly implement the work, also further detail the work related to themselves as prescribed in the Plan for the Division of Labor and promptly formulate specific measues and organize the implementation as soon as possible. In case the same work is involved in many departments, the departmetns shall conduct close cooperation and the lead department shall strengthen coordination. The National Development and Reform Commission(NDRC) and the Ministry of Commerce (MOFCOM) shall submit the status of the annual completion of various works to the State Council together with related departments, and the General Office of the State Council will carry out inspection on the implementation of key works at an appropriate time.

General Office of the State Council

August 18, 2010

Plan for the Division of Labor of Departments on Implementing Several Opinions of the State Council on Futher Handling Well the Utilization of Foreign Investment

Article 1 Optimize the structure of foreign investment utilization

(I) The Catalogue for the Guidance of Foreign Investment Industries shall be amended in accordance with the requirements for Chinese economic growth and combined with the state industrial restructuring and revitalization plan to expand the open fields and encourage foreign investment in high-end manufacturing, hi-tech industry, modern service industry and new energy and energy-saving and environmental protection industry, and place severe restrictions on “high-polluting, high-energy-consuming and resource-dependent”and low-level and overcapacity expansion projects.(NDRC and MOFCOM with the first being the lead department, the same below)

(II) The policies and measures as prescribed in the the state industrial restructuring and revitalization plan shall be applied to qualified foreign-invested enterprises.(NDRC and the MIIT)

(III) Priority shall be given to the foreign investment projects intensively using land encouraged by the state in land use, which shall be executed at 70% of the corresponding land with the ranking not lower than the land they occupy upon the determination of the minimum land transfer price as prescribed in the State Standard for the Minimum Price of Transfer of Land for Industry Use. (Ministry of Land and Resources)

(IV) Foreign investment shall be encouraged in the hi-tech enterprises and the recognition on hi-tech enterprises shall be improved. (MOST, MOF and SAT together with such departments as NDRC, MOFCOM and MIIT)

(V) Domestic and foreign enterprises shall be encouraged to enhance R&D cooperation and qualified foreign investment enterprises shall be supported to cooperate with domestic enterprises and research institutes to apply for the scientific development projects and innovation capacity building projects of the state.(NDRC, MOST and MOF)

And application shall be filed for the recognition of the establishment of the national-level technology center.(NDRC, MOST, MOF, GAC,and SAT)

(VI) Transnationals shall be encouraged to set up such functional agencies as regional headquarters, R&D centers,procurement centers, finance management centers, settlement centers and cost and profits accounting centers with