Governments of all-leveled counties and districts and all departments of the Municipal Government:

　　In order to adapt ourselves to the new situation that out country will participate in the WTO and implement the develop-the-west strategy, continually improving the investment circumstance, attracting more investors to our city, boosting the development of out city. According to the related policies of the State Council and the Provincial Government, now the municipal government puts forward several suggestions to the policy, which is for further attracting external investment, by combining with the truth of our city and the discussion of the municipal government.

　　Article 1. We encourage domestic and international personal business, enterprises and other economic organizations, especially, large enterprises(groups), listed companies, high and new tech enterprises, to invest to our city by registering and establishing joint venture and wholly owned enterprise cooperation, participating in the enterprises reform, reshuffle and merging of our city, being engaged in the research, development and industrialization of high and new technology, being engaged in various industries, which are good for the sustainable economic development of our city.

　　Article 2. We establish Xianning Joint Office Center for the external Investment. This office affiliates the municipal leading team of investment promotion Its staff are composed of members from various institutions, which belong to the team, and they will work in the office punctually. The office implements one-stop service, which means all procedures of the investment program are managed by this center and completed in this building. The economic and environmental issues that affect production and operation of the enterprises will be dealt with by the center. Varieties of appraisal and acceptance, as well as the pay checks are validated by the centre. Also, the center is responsible for the reporting, audit, and approval procedures in the “suggestions” of the rewards. The specific methods of work of the United Service Center of the city will be worked out separately. Counties, cities, and districts can set up a joint office center to be responsible for relevant work.

　　Article 3. If external investors want to set up enterprises in the city, they will only be charged with the production fee of license for all kinds of procedures. When the enterprises officially put into operation, all kinds of fees will adhere to the “one year exemption and two year reduction, that is to say, the enterprises can be without charge for all the administrative fees for the first year after officially  putting into operation and just be charged with a half of the fees in the second and third year. Then in the forth year, will be charged according to the rules.

　　Article 4. As for some projects, like the development of high-tech, high value-added and export-oriented enterprises, tourism development, agricultural development, the reduction period mentioned above can be added an additional year, as “one year exemption and three year reduction”, starting from the fifth year.

　　Article 5. To some high-tech enterprise, their production and research equipment can adopt the accelerated depreciation method, the comprehensive depreciation will be increased by 30% on the basis of the provisions in the country.

　　Article 6. The state-owned assets of the enterprises that buy and merge the state-owned and collective enterprises will be checked by the State-owned Asset Administration Department and the transaction prices can be lower than the assessed value. The capacity of the water and electricity of the original enterprises can be retained or brought to the relevant new enterprises and free of transfer fee. The employees in the original enterprises with continual employment will be charged with no management fees by the Labor Department.

　　Article 7. If the external investors invest and develop productive enterprises that conform to national industrial policy in the Hot Springs Economic and Technological Development Zone Industrial Park, the city will provide land free of charge.

　　Article 8. If the external investors develop high-tech, high value-added and export-oriented enterprises in the city, the prices of the land for production will be decreased by 50% on the basis of the prices the city announced on comprehensive land. As for other enterprises, the prices will be decreased by 30%.

　　Article 9. If the investors hire some sites, its land fees or land using fees, will be free in 5 years after the investors obtaining land-using rights and pay 20% according to the required standards.

　　Article 10. The administrative staff and the family of the external investors can settle down in the city, and when going through the “Temporary Residence Permit”, and only be charged for the cost of production. Their children have the same treatment of the city residents in nursery, school, further education, recruitment, recruitment for leaders. After two years’ living, they can be changed into non-agricultural registered permanent residence freely. If one, who holds the “temporary residence permit” for more than one year, wants to go abroad for trade, technical operation, investigation and other business, the relevant departments can check and go through the formalities in time according to the rules.

　　Article 11. The external investors can introduce all kinds of professionals with a Bachelor degree or above. The ways of introduction could be mobilization, part-time or short-term work. The city carries out “one-card-pass” measure for management and full personnel agency service. Relevant departments in the city can go through the formalities free of charge for ones who are willing to transfer their registered residence to our city for permanent residence.

　　Article 12. The professional technique personnel, under the external investors, can apply to the Personnel Department to gain the middle or senior professional titles. Ever since they are qualified for the profession, they can be promoted exceptionally or even get a higher position. The employees can participate in the technique training and skill certifications organized by the city and apply to the Labor and Social Security Department for assessment for technique certificate and technician titles.

　　Article 13. The non-native professional technicians who quit their public position to work in our city can regain their cadre identities, technical positions and wage standards after examination and check. And they can go through the hiring procedures which is free again. The specific policies will be performed according to the XZF 2000 8th document.

　　Article 14. The external investors can go through Labor Handbook, pension insurance, unemployment insurance, medical insurance and the housing fund for their staff. Workers that hold household registered residence in this city or other valid formalities, can apply for individual housing provident fund loans after paying housing fund for one year.

　　Article 15. The external investors in joint-stock reform, bond issuance, stock market, business qualification assessment, national allowance, product identification, appraising and exhibition, project bidding, bidding for the right to import and export, the export tax rebate and establishing branches outside, have the same treatment as the enterprises have in our city.

　　Article 16. It is forbidden to charge or fine the investors wrongly in the name of various reasons. The joint office center for external investment enterprises and department for commodity prices give away “Enterprises Charge register” to all the investors. When the administrative institutions charge the enterprises, they must show the State Council or the Hubei Provincial People's Government for approval of the relevant documents and permit fees paid by the price department of this Municipality and fill in the facts in “Enterprises Charge register”. If not, the enterprises have the right to refuse to make payments and report it to the external investment enterprises united office center.

　　Article 17. The city should establish foreign investment enterprises production development funds , specially used for  loan subsidies ,loan guarantees  ,technology risk , technology  progress programs appropriation and special subsides  of foreign investment enterprises. The investors set up  all sorts of enterprises in our city, within three years beginning from the day of being put into production, according to a certain percentage of the gross income of the actual tax revenue turned over to the state by the same-level, appropriating year-end nonrecurring production development funds  :if a part of the total annual profits which turn over to the country is in the range of 100,000 yuan (including  100,000) to  300,000 yuan ,according to the allocation of 20 percent (the level of the portion of income, the same below) ; if the profits turned over is in the range of  300,000 yuan (including  300,000) to 500,000 yuan, 30 percent allocated; if the total annual turnover is in the range of in the range of 500, 000 yuan (including  500,000)to 1 million yuan, 40 percent allocated; if the total annual turnover is in the range of 1 million Yuan(including  1 million) to 5 million yuan percent allocated, if the total annual turnover is over 5 million yuan , production development funds for the high value-added and export-oriented enterprises on the basis of above favorable grade will be increased by 10 percent.

　　Article 18. High and new tech enterprises establish through the transformation of advanced technology, patent technology, new process and new product or share investment by High Technology Achievements. The amounts of share investment in the registered capital of the enterprise possess 49% to the highest. If the technological achievements are beneficial to the enterprises in our city, the technique owner will be rewarded by the ones who benefit in one time. The standards are as follows: If the technology makes the enterprises reach 1million yuan in newly-increased tax, the technology owner will be rewarded a apartment with 3 rooms and 2 halls in urban area. The ones who are willing to settle down in our city, the non-agricultural permanent residence can be solved freely. If the technology makes the enterprises reach 2 million yuan in newly-increased tax, a double-storied villa with an area of 150 square meters and an ordinary domestic sedan will be rewarded. Parts of the criteria can be raised appropriately.

　　Article 19. If other related encourage investment policies issued in this city do not conform to the guidelines, implementation should be performed according to the guidelines. Several relevant questions appearing during the process of implement will be explained by foreign investment enterprise joint office center in Xianning.

　　Article 20. The guidelines will be carried out after the printing. Relevant departments can formulate detailed principles based on the spirit of the guidelines.

　　April, 20th 2001