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Setting the bait for businessmen
By Wu Huixin and Xu Wenwen |
May 28, 2012, Monday
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Print Edition
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ZHEJIANG Province is famous for its entrepreneurs, who have made great contributions to the country's economy, and Hangzhou is working hard to lure these people to the city. Wu Huixin and Xu Wenwen report.
Hangzhou is trying to bring entrepreneurs who are Zhejiang Province native back to the city by providing preferential policies and financial support.
Zhejiang business people have been an integral part of the Chinese economy since ancient times. But they do not only invest in their hometowns. They invest everywhere around the country and some even go global.
Now the Zhejiang government is luring them back to invest more in their home province.
Since the end of 2011, supporting Zhejiang entrepreneurs and innovation have become major priorities for the provincial government.
During the first four months of 2012, Hangzhou has already attracted 271 projects to the city worth a combined 15.9 billion yuan (US$2.5 billion).
Zhonghao Well Group has developed business in Shandong, Jiangsu and Hainan provinces, as well as the Xinjiang Uygur Autonomous Region. Wu Guozhong, the company's president, is a native of Lanxi, Zhejiang. Wu has responded to the government's call and has saved 1 million yuan because of a government policy.
According to the Zhejiang Finance Bureau, enterprises with headquarters in the province and with registered capital exceeding 1 billion yuan are eligible for a 5 million yuan subsidy from the provincial government. Firms with registered capital exceeding 100 million get a subsidy of 2 million yuan, and those with registered capital of 50 million yuan to 100 million yuan qualify for a 1 million yuan subsidy.
Preferential policies also involve taxes and even residency and education benefits.
Zhejiang Ailimei Energy Technology Co Ltd gets a 200 yuan subsidy from the local government for every 1 ton standard coal they help high-energy consumption enterprises save.
The company provides advanced technology and equipment to enterprises to help them reduce energy usage by 10 to 50 percent. The cost savings will be shared by both sides.
Zhejiang Ailimei also gets a tax exemption and fiscal subsidies.
The government has also helped the company's manager Miao Meifang's six-year-old son, who is from Quzhou, Zhejiang, enter a Hangzhou elementary school, without extra charge. Usually, school fees are higher for children from other cities.
In order to resolve school registration problems for the children of businessmen, the Hangzhou Education Bureau drafted a policy that states these kids could pay the same fees as locals for primary and secondary schools.
The company receives such support because it is run by a Zhejiang businessman and it is in the energy conservation sector, one of the city's 10 key industries.
The other nine are: culture creation, tourism and leisure, financial services, electronic commerce, information software, advanced equipment manufacturing, Internet of Things, new energy and biomedicine.
"For us businessmen, returning home is a must, but we need to consider realistic elements," says Cai Guanping, deputy director of the Gansu Chamber of Commerce of Zhejiang Businessmen.
"Zhejiang does not have advantages in terms of land resources and labor costs, and we prefer projects with quick results," he adds.
Recently, the chamber of commerce decided to invest in a real estate project in Hangzhou. It will cover 4,200 square meters and include shopping, leisure and office buildings.
"Many look for projects with quick results because to invest in a new project in a new place requires a period of cultivation, and it requires government to offer entrepreneurs much information," says Wang Shuguang, executive president of the Zhejiang Businessmen Research Society.
"However, only projects with high added value can survive," he adds.
The province has two national level economic regions - Thousand Islands District, which features an ocean economy pilot area, and Yiwu International Trade Comprehensive Reform Pilot Area.
"National level economic regions are attractive to Zhejiang businessmen as it lowers the threshold of private capital and enlarges the investment area," says Cai.
Hangzhou is trying to bring entrepreneurs who are Zhejiang Province native back to the city by providing preferential policies and financial support.
Zhejiang business people have been an integral part of the Chinese economy since ancient times. But they do not only invest in their hometowns. They invest everywhere around the country and some even go global.
Now the Zhejiang government is luring them back to invest more in their home province.
Since the end of 2011, supporting Zhejiang entrepreneurs and innovation have become major priorities for the provincial government.
During the first four months of 2012, Hangzhou has already attracted 271 projects to the city worth a combined 15.9 billion yuan (US$2.5 billion).
Zhonghao Well Group has developed business in Shandong, Jiangsu and Hainan provinces, as well as the Xinjiang Uygur Autonomous Region. Wu Guozhong, the company's president, is a native of Lanxi, Zhejiang. Wu has responded to the government's call and has saved 1 million yuan because of a government policy.
According to the Zhejiang Finance Bureau, enterprises with headquarters in the province and with registered capital exceeding 1 billion yuan are eligible for a 5 million yuan subsidy from the provincial government. Firms with registered capital exceeding 100 million get a subsidy of 2 million yuan, and those with registered capital of 50 million yuan to 100 million yuan qualify for a 1 million yuan subsidy.
Preferential policies also involve taxes and even residency and education benefits.
Zhejiang Ailimei Energy Technology Co Ltd gets a 200 yuan subsidy from the local government for every 1 ton standard coal they help high-energy consumption enterprises save.
The company provides advanced technology and equipment to enterprises to help them reduce energy usage by 10 to 50 percent. The cost savings will be shared by both sides.
Zhejiang Ailimei also gets a tax exemption and fiscal subsidies.
The government has also helped the company's manager Miao Meifang's six-year-old son, who is from Quzhou, Zhejiang, enter a Hangzhou elementary school, without extra charge. Usually, school fees are higher for children from other cities.
In order to resolve school registration problems for the children of businessmen, the Hangzhou Education Bureau drafted a policy that states these kids could pay the same fees as locals for primary and secondary schools.
The company receives such support because it is run by a Zhejiang businessman and it is in the energy conservation sector, one of the city's 10 key industries.
The other nine are: culture creation, tourism and leisure, financial services, electronic commerce, information software, advanced equipment manufacturing, Internet of Things, new energy and biomedicine.
"For us businessmen, returning home is a must, but we need to consider realistic elements," says Cai Guanping, deputy director of the Gansu Chamber of Commerce of Zhejiang Businessmen.
"Zhejiang does not have advantages in terms of land resources and labor costs, and we prefer projects with quick results," he adds.
Recently, the chamber of commerce decided to invest in a real estate project in Hangzhou. It will cover 4,200 square meters and include shopping, leisure and office buildings.
"Many look for projects with quick results because to invest in a new project in a new place requires a period of cultivation, and it requires government to offer entrepreneurs much information," says Wang Shuguang, executive president of the Zhejiang Businessmen Research Society.
"However, only projects with high added value can survive," he adds.
The province has two national level economic regions - Thousand Islands District, which features an ocean economy pilot area, and Yiwu International Trade Comprehensive Reform Pilot Area.
"National level economic regions are attractive to Zhejiang businessmen as it lowers the threshold of private capital and enlarges the investment area," says Cai.
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