On 6 August 2019, the State Council issued an Overall Plan for the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone. The Lin-gang Special Area will benchmark against the most competitive free trade zone recognized internationally, and implement open policies and systems with international market competitiveness, to realize the convenience of foreign investment, business operation and capital flow, facilitate the import and export of goods, and offer highly connected transportation network.
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Overall Planning and Step-By-Step Implementation
Lin-gang Special Area is located to the south of Dazhi River, east of Jinhui Port, and southern area of Xiaoyangshan Island and Pudong International Airport in Shanghai, with a total area of 819 km2. Under the principle of "Overall Planning and Step-By-Step Implementation", Nanhui New City, Lin-gang Equipment Industrial Zone, Xiaoyangshan Island, and the southern area of Pudong Airport will be the pilot areas, covering an area of 119.5 km2.
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Pilot Areas
Nanhui New City：
Lin-gang Equipment Industrial Zone：
Xiaoyangshan Island：
Southern area of Pudong Airport：
Lin-gang Fengxian：
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Development Goals
By 2025, a sound system will be developed to promote investment facilitation and trade liberalization, and more open and functional platforms will be established, to build 100-billion-level industrial clusters, with regional GDP quadrupled compared to 2018. By 2035, a special economic functional zone with strong influence and competitiveness in international market will be created, with a resident population of about 2.5 million and a regional GDP of over 1 trillion.
Since the inauguration of Lin-gang Special Area, 18 industrial support policies have been issued to focus on and support the four major industries of integrated circuits, artificial intelligence, biomedicine, and aerospace, which are explicitly promoted in Lin-gang Special Area by the State and Shanghai Municipal Government. These policies focus on supporting advanced manufacturing and strategic emerging industries such as new-generation information technology, high-end equipment manufacturing, intelligent connected vehicles, new materials, new energy, energy conservation and environmental protection. With coordinated support of major projects and specific funding programs initiated by the State and Shanghai Municipal Government, core enterprises can enjoy 15% corporate income tax policy.
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Integrated Circuits
Companies and organizations that undertake and achieve breakthrough in the research of core technologies will be granted a funding of up to 50% of the technology R&D expenditure.
Enterprises engaged in the research and development of integrated circuit EDA design tools will enjoy a subsidy of up to 50% of R&D expenditure, limited to a maximum of 30 million yuan.
Enterprises adopting Multi-Project Wafer (MPW) will enjoy a subsidy of up to 3 million yuan. Enterprises that deliver full mask tape out for the first time will enjoy a subsidy of up to 50% of the tape-out cost, such subsidy not exceeding 20 million yuan.
Enterprises that sell core equipment and materials independently developed and manufactured for integrated circuits will be awarded a bonus of up to 30% of the sales revenue, a one-time award of up to 10 million yuan.
Enterprises that are recognized as the manufacturer offering materials and IC packaging and testing services will enjoy a subsidy of 50% of electricity bills, with annual funding not exceeding 5 million yuan.
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Biomedicine
Enterprises that have obtained clinical approval for new medicine, medicine manufacturing approval, and medicine marketing approval will be granted a funding of up to 3 million yuan for each approval (license). For drugs that have been marketed and redeveloped with new indications, enterprises will receive a maximum funding of 2 million yuan, with annual funding not exceeding10 million yuan.
Enterprises that have obtained medical device certificate, pharmaceutical production certificate (license) will be granted a funding of up to 2 million yuan, with annual funding not exceeding 5 million yuan.
Institutions that have obtained international and domestic professional qualifications in the field of biomedicine will be granted a one-time funding of up to 1 million yuan for each qualification, with annual funding not exceeding 5 million yuan for an individual institution.
Biopharmaceutical enterprises that have marketing license and have been identified and registered in Lin-gang Special Area will be awarded 1% of year-on-year sales revenue increase, limited to a maximum of 5 million yuan, provided that the sales tax of their manufactured products is settled in Lin-gang Special Area.
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Artificial Intelligence
A maximum of 20 million yuan will be granted for the projects that have led industrial development or achieved disruptive breakthrough in the research and development of the core technologies involving artificial intelligence chips, core algorithms, operating systems, fundamental software, and intelligent sensors.
Artificial intelligence enterprises registered in Lin-gang Special Area with actual capital of more than 20 million yuan (inclusive) will be awarded 5% of the paid-up capital, such award not exceeding 5 million yuan.
Artificial intelligence enterprises that are newly registered or relocated in Lin-gang Special Area with shares acquired through fund investment such as Angel investment and venture capital will be granted a one-time settlement support of 10% of the fund investment, limited to a maximum of 5 million yuan.
Demonstration projects and scenario investment providers will be awarded 30% of the investment and procurement involving artificial intelligence technologies, products, and services, with a maximum of 3 million yuan, and the institutions that provide related technologies, products and services will be awarded 50% of the actual R&D expenditure, with a maximum of 2 million yuan.
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Aerospace
The domestic and foreign aerospace industrial leaders and SME enterprises with actual capital of over 50 million yuan (inclusive) will be awarded 3%-5% of the paid-up capital, with a maximum of 10 million yuan for an individual enterprise.
Manufacturing-oriented enterprises with annual sales revenue exceeding 500 million, 1 billion, 5 billion, 10 billion yuan for the first time will be awarded four-level bonus of no more than 1 million, 2 million, 3 million, 5 million yuan respectively, and the bonus difference will be made up when the enterprises level up.
Over 10-million-yuan Mergers and acquisitions of the enterprises or key R&D institutions in domestic and foreign aerospace industries will enjoy a subsidy of 5% of the actual acquisition cost, accumulatively no more than 5 million yuan.
Testing and verification of the function, performance, and reliability of engineering prototypes (samples) will enjoy a subsidy of 50% of the actual cost, with annual subsidy no more than 2 million.
Aerospace equipment manufactures recognized as national or municipal demonstration enterprises or workshops in the area of intelligent manufacturing will enjoy a one-time subsidy of 2 million (in addition to municipal subsidy), and 1 million yuan respectively.
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Finance
Licensed financial institutions settled in Lin-gang Special Area with a certain scale of paid-up capital will be awarded a settlement bonus of no more than 60 million yuan.
New financial institutions settled in Lin-gang Special Area with a certain scale of paid-up capital will be awarded a settlement bonus of no more than 20 million yuan.
Equity investment companies settled in Lin-gang Special Area with a certain scale of paid-up capital will be awarded a settlement bonus of no more than 20 million yuan.
Newly established financial institutions that purchase self-use office space in Lin-gang Special Area will enjoy a subsidy of up to 12% of the actual purchase price, limited to a maximum of 60 million yuan; for renting self-use office space, a maximum subsidy of 100% of the annual rent will be granted for a period of up to three years.
Newly established functional institutions in the line of finance that purchase self-use office space in Lin-gang Special Area will enjoy a subsidy of up to 6% of the actual purchase price, limited to a maximum of 20 million yuan; for renting self-use office space, a maximum subsidy of 100% of the annual rent will be granted for a period of up to three years.
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Yangshan Special Comprehensive Bonded Area
Goods not subject to inspection and quarantine or verification of regulatory credentials for import and export can directly leave the port upon submission of requests for release;
Trade processing manuals are no longer required for companies located within the bonded area, which are exempted from some administrative processes such as manual registration and verification. Companies in the area can carry out businesses such as merchandise transfer, container consolidation, warehousing, processing, trade, exhibition, research and development, remanufacturing, and inspection and maintenance, exempted from customs approval;
Except for prohibited items, goods and items imported by companies in the area and used for R&D within the area are exempted from submission of licenses;
Third-party inspection and testing institutions or certification bodies are encouraged to provide import/export inspection and certification services within the area. Remanufacturing of aerospace and engineering equipment and CNC machines of advanced technology and high added values are allowed in the area.
Bonded warehousing and exhibition of imported vehicles are allowed in the area.
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Talents
The required period of stay for residents to receive household registrations is reduced from seven years to five years, and is further shortened to three years for those eligible as core talents in priority industries;
Applicants who are employed by key institutions as core personnel with skills in short supply and are holders of a bachelor’s degree or above with a minimum of two years‘ working experience in related areas are eligible for immediate household registration;
High-caliber overseas talents with skills in urgent need are granted subsidies for the difference in individual income tax payable;
Foreign students who intend to start their own businesses in Lin-gang Entrepreneurial Park are granted a work permit. Their start-up experience in the park will be deemed as work experience;
Returned overseas Chinese with a foreign nationality who work in the Lin-gang Special Area may apply for long-term Foreign Talent Residence Permits (Category B Permit, with a maximum validity of 10 years) and are exempt from work permit application;
Foreign employees who work as technical experts in companies registered in the area are granted a work permit with a validity of a minimum of two years if certain conditions are met.
Frontier industry zone：
International innovation partnership zone：
Life science industry zone：
Comprehensive pilot zone：
Special free trade zone：
Modern services zone：
South area of Pudong Airport：
Lesser Yangshan Island：
Covering an area of 10.3 km2, Zone 103 is planned to be an area that promotes international innovation partnership through a top scientist community, a technology innovation area, a high-tech headquarters hub, an intelligence technology community, and an international innovation collaboration area. By 2022, Zone 103 will host two or three top labs led by Nobel laureates, a versatile conference facility, labs, research institutes of the world’s top universities, and supporting living areas and international schools. By the same year, available R&D office space will reach one million m2, with another one million m2 under construction, to attract 1,000 technology- and innovation-oriented companies.
on the west shore of the Dishui Lake with an area of 20 million m2, Zone 105 is expected to house a living area of 9.15 million m2, a commercial area of 7.8 million m2, an area of 0.6 million m2 for R&D facilities and an area of 1.05 million m2 for supporting public facilities. It will be home to 170,000 residents and 300,000 jobs. To develop into an interactive, livable and high-end community, Zone 105, which centers around airport express stations, will have a cultural and art island, a headquarters bay area, a CBD, an offshore trade area, an international community, and a modern service area providing diverse supporting services.
Education Resources
Education resources are booming in the Lin-gang Special Area. From kindergartens, primary, middle and senior high schools to colleges and universities, a variety of well-known schools gather at the heart of the Lin-gang area.
Kindergartens：
Primary schools：
Middle schools：
International schools：
Colleges and universities ：
By 2022, Lin-gang Special Area is expected to be home to 26 public schools. It will promote the development of education platforms such as open universities, industry-oriented colleges and the Lin-gang Lecture Hall, and accelerate the development of a national demonstration area for industry-education integration.
Positioning: From Lin-gang to Shanghai, from Yangtze River Delta to China and Overseas
Lingang Group is a large state-owned enterprise managed by the Shanghai State-owned Assets Supervision and Administration Commission with a focus on the investment, development and administration of industrial parks and supporting services. As the controlling shareholder of Shanghai Lingang (600848.SH), the group operates three brands, namely Lin-gang, Caohejing, and Innovation Galaxy. During its more than 30 years of industrial park operation, it has built 23 industrial parks including the Shanghai Lin-gang industrial area, the Caohejing development area, the Yangshan Free Trade Zone, the Lin-gang Songjiang Sci-tech City, and the Lin-gang Innovation Galaxy. The group has also led many urban renewal projects in China. In addition, it has established overseas innovation centers in San Francisco and Boston, USA, Helsinki, Finland and Stockholm, Sweden.
Lingang International Innovation Center
Lin-gang Special Area
