Mianyang Science and Technology City Investment Guide Contents

"Opening up the West"--To designate Mianyang as a Sci-Tech City Designating Mianyang as a Sci-Tech City is the realization of Mr. Deng Xiaoping's important theory that science and technology are the first productive forces. This is an important component of the State's policy of opening-up West China and "Science and Education for National Revival", and is a new exploration to build a Sci-Tech City in a Chinese way.

1.Resources

• Introduction
  Mianyang is located in the northwest of Sichuan, 98 kilometers from Chengdu, the capital city of Sichuan province. Its administrative divisions includes the two districts of Fucheng and Youxian, the New and High-Tech Industries Development Zone, the six counties of Santai, Anxian, Zitong, Yanting, Pinwu and Beichuan, Jiangyou city, and the Science Zone Administration Office of the provincial government. It covers an area of 20000 square km with a population of 5.18 million, among which 50 square km and 500 thousand people are in the urban area. The place enjoys a subtropical, humid and temperate climate, with annual average temperature 14.7—17.3?, the lowest temperature 4—5?, the highest temperature 32—34?, annual average relative humidity 71%
  
  Since the setting up of Mianyang Municipal Government in 1985, GDP has increased by an average of 10.8% per year, and the Industrial Added Value has increased by an average of 14.9%. GDP in 2001 reached RMB 32.98 billion yuan. It is thus the second most important city in Sichuan, one of the fastest developing cities in Western China, and has a very favorable development potential.
  
  GDP (billion):
  2001, 32.98 ; 2000, 31.79;
  1999, 31.05; 1998, 30.87;
  1997, 27.52;
  Finance Revenue (billion):
  2001, 2.66; 2000, 2.57;
  1999, 2.85; 1998, 2.74;
  1997, 2.3;
• Industrial Situation
  Industrial structures in 2001
  Primary Industry
  Secondary Industry
  Tertiary Industry
  
  In Mianyang, there are about 50 big and middle scale key enterprises such as Changhong, Jiuzhou, Changgang, Shuangma, Huachen, Huarun, Shuanghui, Fuling, Fenggu, Taiji Group and so on. Electronics, mechanical engineering, metallurgy, construction materials, chemical industry, etc., make up the key industries. Mianyang has already been developed to be the largest IT products producer in Western China.
  
  It also has enormous advantage and potential in such fields as new materials, biology, fine-chemicals, and mechanical—electronic integrated systems. Moreover it has well-known brands like Changhong TV sets, Jiuzhou wide band network system, Greatwall special steel, Shuangma cement, Jianmen gasoline engine, Fenggu winery, Hushan audio-equipment, Dongfang insulation materials, Xipu erucic acid, etc. And the small and middle scale enterprises and private enterprises such as Fuling, Xinglida, and Tieqilishi are developing very quickly.
• Scientific & Technological Resources
  Mianyang is a very important state defense military industrial and research base with 18 state defense research institutes, such as China Academy of Engineering Physics, Chinese Aerodynamics Research & Development Center, Chinese Gas Turbine Institute, etc. There are six universities and technical schools, two national technical centers (Changhong and Jiuzhou), six provincial technical centers (eg. Shuangma and Dongchai). In the various fields of nuclear technology and its application, aerodynamics, aeronautic engines, magnetic materials and industrial automation, Mianyang leads in China and / or the world.
• Labour Resources
  A large percentage of Mianyang's population are made up of people from all over China. These people are well-educated and eager to absorb new ideas. There are over 100,000 professional technicians of all kinds. Among them, 25 are academicians of Chinese Academy of Sciences and Chinese Academy of Engineering, and about 800 among which enjoy the State Special Allowance. It also has a whole range of schools of industry, agriculture, medicine, etc., totaling 100 majors in 8 sorts of different levels, and a rich labour resource.
• Big Market
  Mianyang is located at the center of Western China, with a population of 300 million. It has always been the political, economical and cultural center of Northwest Sichuan throughout history, and is the bridge between Northwest and Southwest China.
• Natural Resources
  The potential hydroelectric resource is 3000 MW. Of this, 1380 MW is readily exploitable. The natural gas reserve is 10,000 billion cubic meters. There are 15 mineral deposits in Mianyang with industrial exploiting value, which are also key ones in Sichuan province. Mianyang is particularly rich in gold, manganese, flux, dolomite, dilatable humid soil with verified reserves, barite, glass sandstone, cement gray rock, cement burden, casting mold sand .
  Fucheng Ophiopogon Japonics, Jiangyou Monkshood, Pingwu Rhizoma Gastrodiae, Zitong Roof of Balloonflower, Beichuan Taxus Chinensis, Santai Olive, Anxian Date Skin, ginkgo, the bark of eucommia, the rhizome of Chinese goldthread, ginseng, the bulb of fritillary, Chinese caterpillar fungus, etc. are famous overseas and at home. Among these Fucheng Ophiopogon Japonics, Jiangyou Monkshood, and Pingwu Rhizoma Gastrodiae have already been set up as state production base.
  There are also over 55 state protected animals, such as giant panda, golden monkey, takin, lesser panda, etc.
• Tourism and Cultural Resources
  Mianyang has about 2200 years of history with official local government. It is the birthplace of the Emperor Dayu, Leizhu the mother of silk, and Li Bai the great poet of Tang Dynasty. It is also named as the “Giant Panda Country”. To the north is the Jianmen Castle, to the south ChengDu Plain, to the west Jiuzhai Huanglong, and to the east Bayu and Three gorges, so it is known as the hub or “the throat and key” of Sichuan through its history. The eco-tourism routes include Wanglang Natural Protection Zone, Qianfu Mountain, Yuanwang Cave, etc. Fule Mountain and Zitong Damiao contain important remains for tourists interested in the “Three Kingdoms”. There are also industrial and scientific sites for interested tourists, such as CAEP Exhibition Center, Asia's largest aerodynamics center, Changhong Commercial Center. It is becoming the top tourism center of Sichuan and West China. The famous Yuewang Lou (tower) is one of the four most famous towers in China.
• Preferential Policies
  1. New productive enterprises listed in the Mianyang Sci-Tech Industry Policy pay only 15% of the CIT. If the export value amounts to 40% or more of their total revenue of the year, it can pay at 10% CIT rate.
  2. The foreign-invested productive high-tech manufacturers with more than 5 years operation shall be exempted from their CIT in the first two years beginning from the profitable year, and reduced by 50% CIT from the third year to the fifth year, and after 5 years by 50%. If it still remains an advanced-tech company, then it may be extended for another three years of 50% payment of CIT.
  3. Foreign investors who re-invest company profits to increase the registered capital for a period of no less than five years, 50% of the above tax will be rebated. Or those who reinvest their profits to build another productive high-tech enterprise with a running period of no less than three years, 100% of the paid CIT from the reinvestment portion can be refunded.
  4. The identified high-tech industrial projects, the local part of their operation tax, company tax and added value tax will be collected first and returned in due time from the day the enterprise starts to sell its products. The identified high-tech industrial projects with self-owned intellectual property will enjoy the exemption of 50% of company tax and operation tax, and 50% of the local part added value tax will be rebated from the third to the fifth year.
  5. Mianyang Sci-Tech City high-tech projects encourage foreign venture capital. If the investment is more than 50% of the total investment value, 50% of the company tax will be returned for the first 5 years from the profitable year to compensate the investment loss for the first few years.
  6. 100% of the local government part of the value-added tax paid by major projects in the Mianyang municipal area,(whose general investment exceeds USD 30 million, with an operating period of ten years or more, and which enjoys special incentives,)will be rebated in the first and second year, based on their tax receipts. From the third to the fifth year, 50% of the above tax will be rebated.
  7. Foreign-investment enterprises which have been administratively allotted land-use rights pay land-use fees at 50% of the rate set by the state, commencing one year from the date of issue of the State-owned Land-Use Certificate. The following categories enjoy additional incentives:
  Foreign-investment enterprises engaged in agriculture, forestry or municipal infrastructure projects, environmental protection, education, scientific research and sanitation industries pay NO site-use fee;
  Foreign-investment enterprise engaged in road construction (highway), bridge-building, power stations, airport auxiliary facilities and mineral resource exploitation pay NO site-use fee.
  Foreign-investment enterprises engaged in advanced technology and export products, which operate for a period of more than 10 years, enjoy exemption from site-use fees for five years from the commencement of operation. Enterprises, which operate for a period of more than 5 years, enjoy exemption from site-use fees for three years.
  8. Foreign-investment enterprises which acquire land-use right by purchase, transfer or lease pay NO site-use fee. Additionally, 10-30% of the local government’s part of the land price may be rebated under certain conditions.
  9. Major projects of general investment above USD 30 million are exempt from the local government component of site–use fee for any development and construction within their operating period, subject to Municipal Government approval.
• Investment Environment
• Traffic
  Mianyang Nanjiao Airport (4c Airport) has flights to Beijing, Shanghai, Guangzhou, Shenzhen, Haikou, Wuhan, Kunming, Chongqing and other important capital cities, and is also the nearest civilian airport with good facilities to Jiuzhaigou. There are 5 main grade-one highways and expressways leaving and entering Mianyang. Among them, Chengdu-Mianyang, Mianyang-guangyuan Mianyang-Chongqing are three expressways. The Baoji-Chengdu Railway goes through Mianyang. The Mianyang Railway Freight Station is a first class state station which guarantees freight transportation.
  Commodities Interflow Center and Transportation Center
  Mianyang Customs, Mianyang Extry-Exit Inspection and Quarantine Bureau of P.R.C., the only public protective tariff depository in Western China are all in place. Ships go directly to Guang xi Beihai harbor, Chongqing harbor and Luzhou, etc.
• Municipal Infrastructure
  Daily urban water supply: 460,000 tons
  Electricity output per year: 6 billion kw
  Capacity of power distribution system: 1.76 million kw
  Daily natural gas supply capacity: 900,000 cubic meters per day
  60 bus lines and over 1100 taxis in the urban area.
  Mianyang is the largest post and communication hub in northwestern Sichuan. The ADSL service and high-speed wide band network have already been put in use, the city Sewage Treatment Plant and Garbage Treatment Plant will meet the demand of the city's continuingdevelopment.
  Environment Protection
  The urban green land coverage reached 32.5%, 6.15 square meters per person. The water resource is plentiful. Public transportation (buses and taxis) mostly uses natural gas. The urban air quality reaches National Standard Grade One. Mianyang has gained the titles of "National Civilized City", "National Clean City", "National Green City", and "Urban Residential Improvement UN Model City".
• Service
  There are 11 hotels with stars in urban area. Mianzhou Hotel is a four-star hotel, and Fuleshan International Hotel, Prince Hotel, and Changhong Hotel are three-star hotels. Finance and insurance services are all in place. The commercial center around the People's Park consists of the super-markets N-Mart, Trust-Mart, Parkson, and Jialefu, as well as the fast-food outlets McDonald's and KFC. Several high standard residential areas, sports fields and stadiums guarantee the people in Mianyang a good living and working environment. Mianyang has successfully held the Fourth Farmer's Games and Provincial Minority Sports Meeting.

II. Encouraging Guide Fields for Investment

• Energy, traffic and communication, Construction of Commodities Interflow Center and Transportation Center
• Modern agricultural technology
• Development of Traditional Chinese Medicine production base and Chinese Patent Drug
• Magnetic materials
• Superfine powder materials,
• Nanometric materials
• Superhard materials
• New type building materials
• New type household appliances
• Digital communication equipment
• Integrated circuits
• Computer and network technology
• Precision medical equipment
• New type electronic components
• Software development
• Genetic engineering
• New energy
• Fine-chemicals
• Nuclear technology appliance
• Photoelectric device, sensitive component and sensor product
  Projects of Environmental Protection
• New technology and equipment to prevent environmental pollution
• Development of tourist products
• Set up of research and development center for new technology and product.
• Set up of Venture Capital Investment
• Enterprise asset reorganization
• Business, transportation, finance, insurance, stock branch
• Accountant's Office, Lawyer's Office, Auditor Office, Travel Agent

III.Encouraging areas for investment

• Mianyang High & New -Tech Industrial Development Zone
  Mianyang High & New-Tech Industrial Development Zone was approved in 1992 as a “State-level High & New-Tech Industrial District” by the State Council of the Chinese Government. It has a planned area of 61 square km, of which 43 square km is under its control now. It has a population of 80 thousand. It has attracted a few well-known enterprises like Japan Fine-Chemicals, Changhong Group, and Jiangshu Zhonlian Group. An industrial system with electronic information as its core and new materials, fine chemicals, and organic technology as its key industries has already been set up.
  Mianyang New-tech Industrial Development Zone provides an advantageous investment environment. All necessary infrastructures is already in place. The first Protective Tariff Deposit in Western China, National Sci-Tech Venture Service Center, Oversea Students Venture Garden, and several post-doctoral working stations are located here. The medical and education facilities, housing and hotels of the zone are first class, for example Mianyang Foreign Language School.
• Mianyang Sci-Tech Venture Garden
  It is located in the Gardening Area, next to the future Municipal Administration Center, with a planned area of 4.98 square km. The entire necessary infrastructure is designed according to the standards of developed countries. Its multiple functions include commodities development, hi-tech technicians training, services, and high-tech commodities development demonstration. The area is going to make full use of the intellectual resources, and create a new administrative system to set up an example area.
• Mianyang Economic & Technology Development Area
  The total planned area of this area is 22.7 square km. There will be an urban lake of 5.76 square km after Sanjiang Hydropower Station is accomplished and this will create an excellent eco-system. It is adjacent to Mianyang Airport, and with all necessary infrastructures already in place. It is an excellent place for high-tech industries such as IT, medicine, environmental protection as well as entertainment, real estate, food processing, etc. The land along the main road and around the airport is convenient for the development of air transportation and relevant industries. The plentiful and cheap power, natural gas, and water resources are especially favorable for the energy intensive industries.
• Mianyang Sci-Tech City Modern Agriculture Demonstration Area
  This multiple-function modern demonstration area is located in the southeast suburb area for science research, development, creation and demonstration, and to challenge the traditional agriculture and set up modern agriculture structure. The area has a total area of 28 square km and a total population of 18 thousand. Our aim is to use this area for scientific research into modern technology of agriculture and promote the use of this technology. This will include breeding, a demonstration base, and agriculture technician training, etc.
• Mianyang Nanjiao Industrial Park is the first of Sichuan province to be set up by the Provincial Sci-Tech Commission as a "Spark Sci-Tech Site" and "Sci-Tech City Industry Park" by the Mianyang municipal government. This park is adjacent to Nanjiao airport with convenient transport and all necessary infrastructures in place.
• Youxian Economic Experimental Zone is a provincial development park. Its planned extent is 5square km. It has an immediate access to national research institutions and major enterprises such as national military research institution-CAEP, the Southwest Automotion Research Institution, Southwest China Computer Center, Taiji Group, Sichuan Oriental Insulator Material Factory, Sichuan Chaoyang Machinery, etc.

IV. Service for Investment
Investment Cost (just for reference)

Investment Procedure

• Service Organization
  Mianyang Foreign Investment Bureau
  Mianyang Administration Service Center
  (Investment Service Center)
  Mianyang Investor Complaint Center
  Mianyang Development Planning Committee
  Mianyang Economic and Trade Committee
  Mianyang Foreign Trade & Economic Cooperation Bureau
  Mianyang Industry and Commercial Administration Bureau
  Mianyang Customs
  Mianyang Extry-Exit Inspection and Quarantine Bureau
  Mianyang Social Insurance Bureau
  Mianyang Hongxing Public Protective Tariff Deposit
  Mianyang Technology Innovation Center
  Mianyang Enterprise Developing Advice Center
  Mianyang Puruishida Management Consulting Company
  Mianyang Employment Service Center
  Sichuan Ruifeng Accountant Office Co. Ltd.
  Sichuan Jingjian Accountant Office Co. Ltd.
  Mianyang Wanfa Lawyer Office
  Mianyang Municipal Foreign Investment Bureau
  87 Jingzhong Street, Mianyang, Sichuan, P.R.China
  Tel: 86-816-2240298 2240299 2240625
  Fax: 86-816-2232688
  E-mail: myfio@my-public.sc.cninfo.net
  P.C.: 621000
• Doutuan Mountain
• Baima Tibetan
  Mianyang relic -- horse of Donghan Dynasty.
  Teaching area of South-west University of Science and Technology.
  Hongkong Huacheng Group Gasoline Engine Production Line – Mianyang Branch.
  Changhong National Technology Center.
  The nearest civilian airport to Jiuzaigou .
  Hi-Tech Industrial Park Nanometric Technology Developmental & Applied Center
  The Vice-premier of the State Council, Li Lanqing, inspecting the Service Center of New-tech Industrial Zone.
  The Welcoming Mianyang
  In September 1999, Zhu Rongji, premier of State Council, inspected China Academy of Engineering Physics.
  The jewel of "Open–up the West"－Mianyang
  Sanjiang Project.

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