Tailored policies in Qingdao FTZ boost enterprise development

Situated in Qingdao West Coast New Area in East China's Shandong province, the Qingdao Area of the China (Shandong) Pilot Free Trade Zone serves as a hub of institutional innovation and competitive industrial clusters. [Photo/WeChat account: qdxihaianfabu]

The Qingdao Area of the China (Shandong) Pilot Free Trade Zone (Qingdao FTZ) recently introduced policies to support enterprises in seven key sectors such as international trade and shipping logistics.

International trade

In the realm of international trade, the focus is on fostering an ecosystem that combines traditional trade with new formats like cross-border e-commerce, offshore trade, and barter trade.

Noteworthy incentives include awards tied to cross-border e-commerce business scale, with import awards up to 15 million yuan ($2.09 million) on offer under the 1210 model, while trade volume-based awards are capped at 200,000 yuan for barter trade. Moreover, the commercial industry sector offers sales-based awards of up to 0.078 percent of total sales.

Shipping logistics

In the shipping logistics sector, ship supply enterprises stand to benefit significantly, receiving awards equivalent to 90 percent of their regional contribution. Additionally, businesses utilizing bonded warehouses can receive an award of 0.5 percent of the cargo value. For entities in shipping technologies, maritime economy and related fields, a rent subsidy ranging from 50 to 90 percent is provided for up to two years.

Modern finance

In modern finance, financial leasing services receive support equal to 2 percent of the actual paid-up capital, up to a maximum of 100 million yuan. Financial leasing companies receive support equal to 1 percent of their actual paid-up capital, with a maximum of 20 million yuan. Additionally, financial and financing leasing companies that increase capital by over 100 million yuan receive support qual to 1 percent of the increased capital amount.

Advanced manufacturing

National and provincial-level intelligent manufacturing benchmark enterprises, intelligent factories and digitized workshops stand to benefit from awards of up to 2 million yuan. Additionally, national, provincial and municipal manufacturing innovation centers as well as key laboratories are eligible to receive awards of up to 5 million and 4 million yuan, respectively.

Integrated circuits

Enterprises are eligible to receive support equal to 30 percent of their annual R&D investment, capped at 12 million yuan. Furthermore, a certain percentage, potentially up to 100 million yuan, will be granted based on the actual investment amount in fixed assets for a given project.

Foreign investment

Projects attracting foreign capital inflows exceeding $5 million are eligible to receive awards proportional to the foreign capital utilized, with a maximum of 3 percent.

Talent aggregation

Furthermore, emphasis is being placed on talent aggregation, with high-level talent being offered substantial living allowances of up to 6 million yuan. Companies that successfully attract and integrate various high-level talent are also eligible for awards of up to 1 million yuan.