Foreign-invested firms that were newly set up or increased investments in Shenzhen will be rewarded up to 2.5 million yuan (US$386,000) based on the actual paid-in foreign capital in the year 2020.
According to an implementation plan recently released by the Shenzhen Municipal Commerce Bureau, the city will adopt a tiered award system based on the contributions of foreign investors in actual utilization of foreign capital. But the award will skip real estate, financial and quasi-financial projects.
For foreign businesses whose actual utilization of foreign capital ranged between US$5 million and US$10 million last year, the reward will be 1 million yuan.
The reward will be doubled to 2 million yuan if the amount of foreign investment in actual use reached US$10-20 million in 2020, but will be capped at 2.5 million yuan if the amount exceeded US$20 million.
A pioneer of China's reform and opening up, Shenzhen has been a popular destination for foreign investment.
The city is accelerating legislation on the promotion of overseas investment to create a more favorable business environment and better protect the legal rights and interests of overseas investors.
According to the city's commerce bureau, Shenzhen's actual use of overseas capital amounted to US$7 billion in the first 10 months of last year, accounting for 6.13 percent of the country's total and growing 7.58 percent year on year, with China's Hong Kong Special Administrative Region, the United Kingdom, France, Germany, Japan and Singapore being the main sources.
By the end of September last year, more than 90,000 foreign-invested enterprises had been set up in Shenzhen since the city issued the first business license for a foreign-funded company in 1981.
Foreign-funded enterprises, which account for only 2 percent of business entities in Shenzhen, generate about one-fifth of the city's GDP, 40 percent of its import and export volume, and nearly 30 percent of its tax revenue every year, data from the municipal bureau of commerce showed.
Despite the heavy impact of the COVID-19 pandemic on the global economy, Shenzhen has shown strong economic vitality and appealed to foreign investment with its excellent business environment and investment climate.
A total of 4,665 foreign-invested enterprises settled in Shenzhen in the first three quarters of 2020, statistics from the city's statistics bureau showed.