Recently the Foreign Economy and Trade Bureau of Dongguan released a notice concerning Dongguan enterprises’ application for the provincial program ‘go global’ to nourish and attract more internationally competitive enterprises in Dongguan. A maximum incentive of 5 million yuan will be given to enterprises that register for the program. Enterprises can complete related formalities downloaded from the website of the Foreign Economy and Trade Bureau of Dongguan.

By now there are less than 20 enterprises that have ‘gone global’. These enterprises primarily major in the fields of logistics, petrochemistry, clothing, and decoration materials.

Officials from Bureau explained that the fund will be utilized in overseas investment, foreign economy and trade, overseas cooperation in agriculture, forestry, fishery and mining industries. Most of the enterprise applicants are those who have signed contracts and gained substantial achievements via attending the 2007 Africa Economy and Trade organized by Guangdong Province and the 2008 ASEAN Trade forum.

The Notice requires that each overseas project will be given a special fund subsidiary which is required not to exceed the Chinese investment contribution in the project.

Enterprises will be offered subsidiaries for a maximum of 50% of the set up fees incurred through preparing for the projects. These typically include fees charged for legal, technical, business consultation and assessment, project research and planning. Furthermore, enterprises can enjoy loans at discounted rates in funding for overseas investment, overseas development of industries such as agriculture, forestry, fishery and mining, and overseas project contracting.

Tips

Basic requirements for project applicants

1. Legally registered in the country where the project is to operate.

2. Concise and clear property relationships between the overseas investment project and the domestic headquarters.

3. Single minimum loan amount of 1 billion yuan for the projects applying for loan subsidies. The sum of loans for each single project shall not exceed the total investment volume of Chinese investment.

4. The enterprise should set up an overseas industrial park for economic trade cooperation with at least five enterprises invited or with more than US$10 million investment volume. Or it should set up an overseas commodities display center with at least 10 cooperating enterprises or the whole investment value amounts to over US$5 million.

5. Overseas enterprise applicants for the fund should participate in the Joint Annual Inspection of Overseas Investments and the comprehensive performance appraisal.

(By Tan Jing)