SZ to pilot quality infrastructure development

 Shenzhen has been chosen as the first Chinese city to pilot high-quality infrastructure development, according to an approval of the National Development and Reform Commission recently publicized on its official website.

The pilot high-quality infrastructure development program includes traditional infrastructures in transportation, energy, water conservation, logistics and public works. It also covers new infrastructures such as AI, industrial internet and IoT (Internet of Things).

By 2025, the city’s infrastructure construction scale and innovation level will join the ranks of leading groups in the world. Its traditional facilities will be deeply integrated with new ones; and infrastructure-supported new social and economic development modes, and business modes will be formed.

According to the Shenzhen Municipal Development and Reform Commission, the pilot will be developed around four “crossovers” — crossing the border to lead development, crossing regions to synergize development, crossing domains to coordinate development and crossing cutting-edge technologies to integrate development.

The commission also states that to attain these goals, the city will push forward the construction of some major projects and platforms.

As Shenzhen aims to be an international comprehensive transport hub, it will break institutional barriers and establish highly efficient, balanced and coordinated mechanisms for the hub’s development. It will also push forward the transformations of advanced manufacturing and modern service industries from infrastructure-based to internet or platform-based, thus forging emerging economic growth points.

In terms of cross-regional development, the city will enhance cross-city infrastructure connectivity and Shenzhen Metropolis Circle’s integrated operation and maintenance system under the guidance of joint infrastructure planning, construction and management, and mutual service sharing.

In terms of cross-domain coordinated development, the city will coordinate planning and spatial layout of traditional infrastructures in transportation, energy, water conservation and urban security, and ensure infrastructure resource sharing, joint facility construction and mutual space utilization.

Shenzhen will apply new infrastructures onto traditional ones and make these traditional transportation, energy and public works infrastructures more intelligent.

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City to boost satellite-related industries

 Shenzhen is now collecting industrial key projects relating to satellites and their applications to seek the industrial development opportunities and constructing “satellite+” innovation ecology.

The projects include six orientations, namely demonstrations of special application scenarios, research on major equipment and key spare parts, key technologies’ research and innovative applications, core products and spare parts industrialization, civil use and public service platform infrastructure construction and major industries’ public service platform.

This June, in a move to be a global satellite and applied industrial innovation pinnacle, Shenzhen Municipal Development and Reform Commission unveiled a regulation covering 16 innovation measures from five aspects including advancing application scenarios, enhancing innovation capabilities and consolidating infrastructures.

Shenzhen will offer a subsidy up to 200 million yuan (US$31.43 million) for a single satellite project and up to 50 million yuan for satellite launch insurance.

In the regulation, the city encourages the integration of satellites with different industries to forge different application scenarios, supporting application of satellite technologies in different industries like transportation and logistics, marine economy, natural resources, urban safety and environmental protection. For demonstration projects with great market potentials, the city will provide subsidies up to 30 million yuan a year.

The city supports private enterprises in construction of civil space infrastructures like the high-powered broadband communications satellite system and will offer subsidies up to 200 million yuan for a single project and 50 million for launch insurance.

The city also supports leading enterprises to set up satellite industrial parks and to form an industrial cluster in chip research, telecommunications research and developments, remote sensing data treatment and research and operations of intelligent satellites.

For research on major facilities, core technologies and key spare parts relating to comprehensive and integrated application of communications, navigation and sensing, the city will offer subsidies up to 300 million yuan.

Shenzhen has made solid progress in the development of its satellite industries and its global influence has kept increasing in recent years.

In December 2018, the first satellite for the Hongyan constellation, which is comprised of hundreds of satellites in the first phase, was launched. It was the first national-level commercial space project developed by Shenzhen Aerospace Dongfanghong Development Ltd. After completion, the constellation will provide services in various areas, including Internet of Things (IoT), intelligent terminals, mobile broadcast, navigation enhancement and broadband.

In September 2019, China’s first polar-observing satellite, BNU-1, which was made in Shenzhen, was launched. In one year, it obtained more than 2,500 images covering the Arctic and Antarctic regions. It is the first member of China’s polar observation satellite constellation, which will have a total of 24 satellites. Supported by the Ministry of Science and Technology, the satellite was designed by Beijing Normal University and jointly developed by China Great Wall Industry Corp. and Shenzhen Aerospace Dongfanghong Satellite Co. Ltd.

In July 2020, a high-powered broadband communications satellite, Apstar 6D, designed to provide internet access to airline passengers, cruise ships, fishing vessels, and other mobile users, was successfully launched aboard a Chinese Long March 3B rocket. This made Shenzhen become the second city in China that owns a communications satellite.

It is estimated that the market of satellite mobile communications terminals will reach 8 billion yuan in the coming five years. The city will support enterprises developing core products related to satellites and its applications, research and scientific achievement transformations of satellite terminals, BeiDou navigation system, liquid crystal phased array antenna and remote sensing mapping equipment.

SZ, Belgium forge deeper biomedicine cooperation

 Shenzhen Huaya Regional Economic Development Service Center and Belgium’s Wallonia Export-Investment Agency (AWEX) signed a strategic agreement to further deepen cooperation in biomedicine at a forum, a sub-event of the 23rd China Hi-Tech Fair (CHTF), which was held yesterday in Nanshan District.

Didier Denayer, business development and technology counselor of AWEX, said at the Belt and Road Forum for Innovation Cooperation that the signing is a follow-up to the two sides’ collaboration formed in 2019, adding that concrete projects will be mapped out afterwards.

The Belt and Road Forum for Innovation Cooperation, themed around digital information and Belt and Road Initiative opportunities, attracted nearly 200 online and offline participants.

Invited guests, including Jose Roberto de Andrade Filho, head of the science, technology and innovation section of the Embassy of Brazil; Qu Jian, vice president of the China Development Institute (CDI); and Aitor Mate, head economic and commercial counselor of the Economic and Commercial Office of Spain in Guangzhou, delivered speeches at the forum.

De Andrade Filho said that Brazil is accelerating the digital transition of its economy and expecting wider 5G technology implementation. From his viewpoint, 5G development can help spur progress in many sectors such as e-commerce and technology.

Qu suggested in a keynote speech that huge business potential lies in developing countries along the Belt and Road. To seize the opportunities, international cooperation is necessary. “We need to first recognize and then satisfy developing countries’ demands via international innovation cooperation,” Qu said.

The forum was hosted by the China Hi-Tech Fair Organizing Committee Office and organized by the China Hi-Tech Transfer Center and Shenzhen Huaya Regional Economic Development Service Center, a nonprofit service organization that promotes two-way investment and cooperation along the “Belt and Road.”

New SZ-Los Angeles cargo route opens

 A China Cargo Airlines (CCA) flight took off from Shenzhen Bao’an International Airport to Los Angeles, the U.S., on Monday – a first for the airline, according to Shenzhen Special Zone Daily.

This is Shenzhen airport’s second international cargo route and first intercontinental cargo route launched this year after China Central Longhao Airlines added a route to Ho Chi Minh City, Vietnam, on Jan. 6.

CAA’s new cargo route runs four times a week and is operated by a Boeing 777 freighter.

So far, the number of flights on the all-cargo aircraft route from Shenzhen airport to Los Angeles has been increased to 12 per week, boosting North American cargo route capacity.

Shenzhen airport currently has 51 freight waypoints including 31 international and regional ones, which is a new high.

Shenzhen airport’s annual cargo and mail throughput increased by 12.1 percent year on year to 1.56 million tons in 2021, ranking third among the top 10 airports on the Chinese mainland.

International and regional cargo volume increased by 26.8 percent year on year to 650,000 tons, accounting for 41.5 percent of the total.

In 2021, Shenzhen airport introduced eight new cargo airlines including Atlas Air and Southern Air, and added 17 international cargo routes to Chicago, Los Angeles, Bangkok, Singapore, Cologne and Paris.

SZ to reward foreign-invested companies for new projects

 Calls for application have begun for a special 100-million-yuan (US$15.7 million) incentive for foreign-funded enterprises registered in Shenzhen to invest in new projects, Shenzhen Special Zone Daily reported, quoting the commerce bureau.

The 2022 Guangdong Province High-quality Economic Development Promotion Special Fund aims to scale up foreign investment and encourage foreign-invested project establishment across the province, particularly to reward projects using foreign capital to increase investment and expand production, according to the commerce bureau.

The fund application guide said that incentives will be given to new foreign-funded projects, which were established in Shenzhen in 2021, with actual foreign capital amounting to US$50 million and above. These projects will be awarded 2 percent of the foreign capital put into use in 2021, and the maximum funds shall not exceed 100 million yuan.

Last year’s Shenzhen-based new projects with added foreign capital with actual foreign capital amounting to US$30 million and above will also be rewarded according to the same rules.

The fund applications exclude real estate and financial sector projects.

Why Set Up Business Register Company In Shenzhen?

 

Asia-Pacific Hub

Sharing borders with Hong Kong, Shenzhen is endowed with geographical advantages. It is a significant transport hub in the Belt and Road Initiative and Asia-Pacific. Shenzhen is home to an international deep-water port, an international airport, and the largest land ports in Asia, important expressways, and national freight and passenger rails.

The Pearl River Delta upon which Shenzhen is situated has incomparable supporting facilities. Within one-hour drive from Shenzhen, you can procure any main parts or accessory for any industry. Consequently, scientific research can be translated into innovative products rapidly. Shenzhen is within an arm's reach of the most developed market in the world. 

You can travel from Shenzhen to Hong Kong at the drop of a hat, reaching Hong Kong's city center in only 23 minutes, or just a 1-hour drive to Hong Kong International Airport. Within one hour, products can be transported from factory to Shenzhen-Hong Kong ports where they are poised to transport to every corner of the world.

An FDI Top 10 Asia-Pacific Cities of the Future

In China Urban Cities' Transit-Oriented Development Index Report, Shenzhen is No.1 in the City Metro Comprehensive Rank

The growth of international air travelers ranked No.1 in the country

In 2020, Shenzhen's total foreign trade value was RMB 3.05025 trillion, ranking second amongst large and medium-sized cities in the country.

In 2020, container throughput reached 26.55 million TEUs, ranking the fourth in the world.

The growth of international air travelers ranked No.1 in the country

The scale of Shenzhen’s total foreign trade volume ranked No. 2 among large and medium-sized cities in China

With container throughput at 26.55 million TEUs, Shenzhen ranks the fourth in the world.

City of Innovation

Innovation is in Shenzhen's genes. Shenzhen is the first National Demonstration City of Innovation in China. It is developing itself as an international science and technology center and an industrial innovation center, playing a leading role in electronic information, Internet, biology, and new energy industries. Shenzhen has given birth to a large number of high-tech companies such as Huawei, ZTE, Tencent, BYD, and DJI. It is truly a city of innovation.

Shenzhen has been rated as the Best City for Innovation and Start-ups.

Shenzhen has reached  the top of the Forbes China Top 30 Most Innovative Chinese Cities 2018 

The number of PCT international patent applications has been at the top of the country for 17 years in a row.

In The National Innovative City Innovation Capability Evaluation Report 2019 by the Institute of Scientific and Technical Information of China, Shenzhen's innovation capability ranks first among 72 national innovative cities

Second only to Beijing, the number of national high-tech enterprises reached 18,650 in 2020, ranking second nationally.

Shenzhen has been dubbed as "Silicon Delta" by The Economist 

Openness and Inclusiveness

Shenzhen is a window through which China began to reform and open up and a city of immigrants which pools a great number of quality talents, making the city become a brimming vitality. "If you come, you are a Shenzhener", and Shenzhen's unique population structure ends up bursting out strong talent vitality and market vitality, thus forming a unique urban culture that is open, inclusive, innovative and facilitate cultural exchange. In the city of Shenzhen, different cultures and ideas of various countries collide producing all kinds of innovations, creativity and imaginative ideas helping to make Shenzhen a modern international innovative city.

UNESCO awarded Shenzhen the Global Model for the Promotion of Reading

More than 1.75 million people in Shenzhen are registered volunteers

Shenzhen was awarded as the National Harmonious Community Construction Demonstration City

Shenzhen has been named as a National Civilized City for 5 years in a row

95% of Shenzhen residents are from outside of Shenzhen

More than 90% of Shenzhen's populationis of working age

The average age of citizens is around 32.5 years old

Market Vitality

Shenzhen is the city with the deepest level of "market economy" in China. As the first Special Economic Zone in China, its market economy has been well-developed. Shenzhen operates a level playing field and shows respect to all businesses. In 2020, Shenzhen's GDP exceeded RMB 2.77 trillion, making it one of the fastest-growing cities in the world. Shenzhen was transformed from a border town to one of the most developed cities in China.

Shenzhen has given birth to eight Global Fortune 500 companies including Ping An, Huawei, Amer International Group, Evergrande, China Merchants Bank, Tencent, Vanke, and Shenzhen Investment Holdings. Shenzhen is not only a "world-class home for entrepreneurs", but also a "cradle of startup companies."

41st anniversary of Shenzhen Special Economic Zone

In 2020, Shenzhen's GDP was more than RMB 2.77 trillion

Nearly 300 Global Fortune 500 companies invest in Shenzhen

There are more than 3.2 million commercial entities in Shenzhen. Both the total number and density of commercial entities rank first in the country.

Home to 8 Global Fortune 500 companies

(Ping An, Huawei, Amer International Group, Evergrande, China Merchants Bank, Tencent, Vanke, and Shenzhen Investment Holdings)

It was rated by The Economist as the most successful Special Economic Zone among its 4,300 counterparts.

It is among the first batch of demonstration cities in the project of Broadband China and pilot cities of Information Technology for People

In the Global FinTech Hub Report 2020, Shenzhen ranked 6th amongst global financial technology centers, and third in China.

In Global Competitiveness Report 2018-2019, Shenzhen's economic competitiveness ranked fourth in the world.

Efficient Government

The Shenzhen government is one of the most efficient governments in China, aiming to be rule-by-law, and service and clean-oriented. Leveraging the legislative power delegated to Special Economic Zone, Shenzhen has created a fair, transparent, and easy environment for business. As the first Special Economic Zone in China, Shenzhen is also an experimental field and a window through which China began to reform and opening up.

With the goal of marketization, rule of law, internationalization and facilitation, Shenzhen strives to promote a number of reforms, streamline administration and delegate powers, optimize business processes, and take the lead in promoting the reform of the commercial registration supporting system in the country, simplify the process of establishing companies, and stimulate entrepreneurial enthusiasm. Furthermore, the time required to register a company has been reduced 20 working days to only 1.

The Blue Book of Urban Competitiveness 2019 issued by the Chinese Academy of Social Sciences shows that Shenzhen was No.1 in the ranking of Comprehensive Economic Competitiveness of Chinese Cities

In Blue Book of China Urban Development Report in 2019, Shenzhen ranked first on the measure of healthy urban development

In China Rule of Law Government Evaluation Report 2018, Shenzhen ranked first in the evaluation of the level of urban law government

Shenzhen ranked first in the 2018 China Top Ten Highly Efficient Government released by the China Urban Competitiveness Research Association

Coastal Ecology

Shenzhen is a beautiful city in the south to the Tropic of Cancer at the junction of tropical and sub-tropical. The climate is moderate and pleasant. Shenzhen boasts a coastline of 260 km with attractive scenery and charming environment. Shenzhen is proud to have an excellent ecological environment but still steps up efforts in developing green and low-carbon economy, advocating the idea of using resources and energy efficiently to achieve development. Green and low-carbon strategy has become part of the development plan of Shenzhen. 

UNEP's Global 500 Roll of Honor

Shenzhen is one of the most favorable mainland cities amongst expatriates

Shenzhen has 1206 parks

UNEP's Global 500 Roll of Honor, the first International Garden City in China

It boasts one of China's Eight Most Beautiful Coastlines

It was rated as one of the 31 must-see destinations of the world by The New York Times

It was ranked No.2 in the top ten cities and countries worth visiting by Lonely Planet

International Professionals Exchange rated Shenzhen as one of the most favorable mainland cities amongst expatriates

Shenzhen has 1,206 parks and is known as the City of A Thousand Gardens

The energy and water consumption per RMB 10,000 of GDP is the lowest amongst Chinese cities

The air quality is amongst the best in Chinese cities

How to Start a Business in Shenzhen Without a Legal Entity

 

The rules and regulations for foreign companies to do business in China are considered to be strict, depending on the type of industry.

But it is possible for foreign companies to do business in China without WOFE or another type of entity.

Such companies can, for example, sell and import goods into China, have their products manufactured in China, sell their services in China.

There are still various issues that should be considered and which can make doing business in China complicated.

These issues are explained as below:

• Issue 1: a local entity is required for issuing ‘fapiao’

When selling goods and/or services in China, local companies need to issue a ‘fapiao’ which is an official Chinese invoice. This document is important since, without this, local companies won’t be able to deduct Corporate Income Tax and deduct input VAT from their output VAT.

• Issue 2: employees can only be hired by a local entity in China

Both Chinese citizens and expats are allowed to work only for local companies registered in China.

• Issue 3: it is difficult to receive payments from the client without a local entity

Since there are strict Foreign Exchange controls in China and all exchanges in China are administrated by the State Administration of Foreign Exchange (SAFE), if you don’t have a local entity, it is complicated to receive payments.

The Solution to the Above Issues

One of the proposed solutions is the setting of a WFOE in China. In this way, your company can have a local entity and also conduct profit-making activities.

But companies can make use of another solution called PEO or employment outsourcing.

This is probably the best solution in terms of costs and time spent to start the business in Shenzhen. And this is a solution that does not require you to have a local entity in the country.

Basically, investors can rely on local experts in employment and labor law to legally hire the employees on their payroll. These employees will continue to work for you, while the PEO company will manage all the HR and employment relationships.

Employment outsourcing is the most reliable, rapid, and compliant way to have employees hired to work for you in Shenzhen.

Such PEO agencies act as an employer of record (EOR) for your employees directly hiring employees to work for you on your projects.