The Opinion is enacted for the purpose of improving the policies and measures of economic development, optimizing the environment of development and achieving a sound and rapid development of economy.

I. Encouragement of Investment

1. Industrial projects invested in our city will benefit fro the preferential policies contained in the Opinion. The municipal government has established specific fund to support the introduction of enterprises and their development.

2. Tax Preference

2.1. Enterprises incorporated into the scope of support with specific funds will benefit all the tax preferential polices of the state and the provincial government, on the premise of lawful operation of business.

2.2. From the taxable year, the locally retained portion of the value-added tax and corporate income tax will be rewarded to the enterprises with new projects in the first year; 50% of the locally retained portion of the value-added tax and corporate income tax will be rewarded to the enterprises with new projects in the second and third year.

2.3. Fulfillment of Tax Incentives. The application will be reported in written form to the Bureau of Investment Attraction, arranged by the General Office of the Municipal Government for examination by the Bureau of Investment Attraction, along with the Bureau of Economy and Commercial and the Bureau of Finance, and last examined and approved by the municipal government. The tax incentives will be fulfilled annually at the end of the year. The fund will be provided in the principle of reward made by beneficiary.

3. Land Preference

3.1. New projects must be in conformity with the industrial and environmental protection policies and as a general rule, the fixed assets shall exceed 1 million yuan per mu . The municipal government will carry out specific research and give top priority to the use of land by considering the investment scale and industrial layout.

3.2. The municipal government or related units will sign a construction contact with investors and give priority to the land price for new projects or existing industrial projects requiring the expansion of land. The municipal government will transfer the land for the use of project development in accordance with the relevant policies of the state, and assist enterprises with specific fund for the infrastructure by considering the project's investment scale, investment intensity, technology content and taxation contribution.

3.3. Investors shall start the construction as scheduled according to the construction contract and meet the requirement of investment intensity. The municipal government is entitled to withdraw the right to the use of the land that is otherwise used or unused for more than two years. And the municipal government will adjust the specific fund proportionally on projects that fail to reach the requirement of investment intensity.

4. Preference on the Collection of Fee. The administrative and operating fee of new projects that is within the extent of municipal authority, exclusive the cost of production will be exempt. The service fee involved in the construction will be charged (not more than the lower limit of the current prices) on the basis of mutual agreement.

5. Other Preferences

5.1. Children of the investors as well as the major managers and backbones of enterprises with the fixed assets of more than 5 million yuan that is recognized by the Bureau of Investment Attraction and Bureau of Education under the arrange of the General Office of the Municipal Government, will enjoy the privilege of free selection of schools during the compulsory education stage. Excellent representatives of enterprises will be recommended as deputy to the municipal people's congress or candidate of the committee of the municipal political consultative conference.

5.2. No department is allowed to take the measures at will of exercising restrictions on personal freedom, impounding vehicles and assets, and fining of the legal person and major managers of enterprise without the approval of the municipal government.

5.3. Infrastructure including water, electricity and road will be guaranteed. Arterial roads, main water pipeline and high-voltage line out of the red line of the planning area of the plant will be laid by relevant departments free of charge. No department is allowed to stop the supply of water and electricity and interfere with the construction work at will.

6. Enterprises and projects with large amount of investment, high technology content, profound influence on the development of national economy and society and promising prospect will be treated with unique policies and special preference.

7. Rewards of Investment Attraction

7.1. For production projects with the investment of fixed assets of 5 million or above, 1 ‰ of the actual amount will be taken as reward. For construction by stages, rewards will be fulfilled by stages, not exceeding the limit of 100,000 yuan.

7.2. Those who succeed in introducing enterprises with famous brands, hi-tech enterprises or famous enterprises above the provincial level, will receive double of the above reward. For enterprises living up to multiple rewards, rewards at the top level, other than being added up, will be applied.

7.3. The recognition of the amount of the fixed assets of projects introduced shall be reported by the enterprises to the Bureau of Investment Attraction and made by the Bureau of Investment Attraction, Bureau of Economy and Commerce and Bureau of Finance under the arrangement of the General Office of the Municipal Government. (Specific recognition methods are otherwise provided.)

7.4. Those who initiate and succeed in such introduction will receive full reward. Those who initiate the introduction but are joined by others in the successful introduction will receive 70% of the reward and 30% will be reward to those concerned.

20% of the locally retained newly added tax of the year will be rewarded to the units succeeding in introducing production projects into the urban area by the municipal government from the taxable year for 3 consecutive years.

Separate statistics and single settlement will be applied to enterprises introduced outside of the city. 20% of the locally retained newly added tax on the base of the actual revenue in 2006 will be allocated to the place where the enterprise is settled and 80% of that will go to the place that introduce the enterprise. And specific subsidy will be provided after the examination by the financial and tax department under the arrangement of the General Office and approval by the municipal government.

7.5. The municipal government will assign personnel for investment attraction, whose reward and work expenses will be related, if the project of investment attraction is accomplished. Non-government officials can be engaged as agent for investment attraction and assisted with necessary conditions for investment attraction.

II. Larger and Stronger

8. Industrial expansion projects with the investment of fixed assets of 5 million yuan above will enjoy the preferences of the use of land and collection of fees.

9. Enterprises are encouraged to carve out famous brands. Enterprises with state famous product or famous brand for the first time will receive a reward of 300,000 yuan. Those with national inspection-free product will receive a reward of 200,000 yuan; those with provincial famous product or famous brand will be reward with 100,000 yuan.

10. Enterprises are encouraged on the progress of science and technology. Enterprises selected as national hi-tech enterprises for the first time will receive a reward of 100,000 yuan; Enterprises selected as provincial hi-tech enterprises for the first time will receive a reward of 50,000 yuan

11. Enterprises making profit with their own products in foreign currency of 500,000 US dollars will be rewarded in the proportion of “500,000 US dollars to 5,000 yuan”. And reward will also be given to people with special contribution.

12. Enterprises receiving the honor of “Double Top 100" (Top 100 Small and Medium-Sized Enterprises and Top 100 Pioneering Non-governmental Enterprises), Top 10 Industrial Enterprises in Xiaogan City or Top 10 Progressive Industrial Enterprises, and Top 5 industrial Enterprises in Anlu City will receive the reward of 80,000 yuan, 50,000 yuan and 30,000 yuan respectively.

13. Carry out the training on the technical personnel of the enterprise. Integrate the resources of vocational and technical training of the whole city, strengthen the joint between the technical training and demand for labor force of the enterprise, and encourage various training institutes to carry out specific technical training on the labor force of the city and the town, so as to meet the demand for labor force. Training institutes within the scope of support policy of reemployment will receive subsidy according to relevant regulations.

14. After the examination and recognition of the taxation department, enterprises that pay the tax of more than 500,000 yuan and whose newly added tax is 20% more than that of last year will be rewarded by 2% of the exceeded portion.

15. Financial investment is encouraged. Each financial institute shall strengthen the cooperation between enterprise and bank and give support to the development of the enterprise. Financial institutes with large credit input will receive reward as regulated in Method of Financial institute Assessment in Anlu City (AnZhengBanFa [2005]).

16. After the approval of the municipal government and based on appropriate planning, industrial enterprises are permitted to build dormitories on their own land to be rented or rewarded to the staff but shall not for the purpose of commercial housing development.

17. Fulfillment of rewards for supporting enterprises to be larger and stronger. The application will be made by the enterprise with evidentiary material by relevant departments, examined by the Bureau of Economy and Commercial and the Bureau of Finance under the arrangement of the General Office, and last examined and approved by the municipal government. The rewards will be arranged by the Bureau of Finance.

III. Optimize the Environment for Development

18. Regulate the collection of stipulated fees. For industrial enterprises, the fees collection will be brought into the centralized management system of the service center with main items listed on a card. A team initiated by the Soft Environment Optimizing Office of Municipal and joined by the Legal Affairs Office of the Municipal Government, the Municipal Administrative Service Center , the Municipal Financial Bureau, the Municipal Price Control Bureau, the Commerce and Economic Development Bureau, the Bureau of Investment Attraction and the Municipal Small and Medium-Sized Enterprise Bureau, will be formed.

19. Regulate law enforcement. In performing their official business, law enforcement departments should abide by the law, file for approval in advance and enter the enterprises upon agreement. Inspection of law enforcement within 1 work day shall file for the approval of the Soft Environment Optimizing Office of Municipal; that within 1 to 3 working days shall file for the approval of the deputy mayor in charge of industry; that of 3 working days above shall file for the approval of the major leaders of the government.

20. Improve the administrative service efficiency. Put together all relevant functional departments to work in one building of the Administrative Service Center for foreign investors and provide the investors with continuous line of service. Specific measures shall be formulated and implemented by the municipal Administrative Service Center within a prescribed time.

21. Reduce the burden of the enterprises. Relevant departments should improve the quality of their staff and nurture stronger sense of services; the staff should never ask for reception and material, put up obstacle, press for account rendering; or collect fees or apportions charge not listed on the card or stipulated by the center; or appoint a specific service; or force into advertising and subscribing; such activities as competition in urging the enterprises to contribute money is absolutely forbidden. Activities of organizing enterprises to participate in exhibitions and sales should be under the approval of the enterprise.

22. Carry out the enterprise administrative agent system. A high-quality team will be selected by the municipal party committee and the municipal government as the administrative agent of the enterprise assisting and representing the enterprise to deal with the relevant departments of the government.

23. Strengthen the specific service duty. A powerful working team will be established to provide coordination in key projects and industrial expansion projects. The internal affairs are taken charged by the enterprise; while the external affairs are taken cared by the working team. Problems in all the ongoing construction projects shall be solved dynamically. Pause or stop of the project shall be prohibited.

24. Improve the surroundings of enterprises. The judicial organs should severely crack down on “four arbitrariness, six violence” and other criminal activities that interfere with the normal operation of the enterprises, to maintain a normal and sound order of the market economy and keep a good public security environment for the enterprises.

25. Practice a severe investigation and punishing system. Efforts shall be made to investigate into cases of destructing the developmental environment of the enterprises and ascertain the responsibilities of the unit and personnel concerned. Specific measures will be formulated and implemented by the Municipal Bureau of Supervision.

26. The Legal Affairs Office of the Municipal Government is responsible for explanation; the Supervision Office of the municipal government is in charge of the supervision and implementation.

27. These provisions are to come into force from the date of promulgation. In case any discrepancy exists between the previous policies and the Opinion, the opinion shall prevail.