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The Zhongshan Bureau of Commerce recently issued the Detailed Implementation Rules of Special Funds for Business Development (Promotion of Projects Using Foreign Capital) of Zhongshan City.

The Rules target foreign-invested enterprises (including Hong Kong-, Macao- and Taiwan-invested enterprises, excluding real estate, financial, and pseudo-financial projects).

The Rules clarify the scope and standards of financial incentives. From 2022, foreign-invested enterprises with an annual paid-in registered capital of 5 million US dollars or more (monetary contribution only) will be given financial rewards according to the following standards:

1. For enterprises with a paid-in registered capital of 20 million US dollars or more, 2% of the paid-in registered capital will be covered, with a maximum reward of 20 million yuan;

2. For enterprises with a paid-in registered capital between 10 to 20 million US dollars, 1.5% of the paid-in registered capital will be covered;

3. For enterprises with a paid-in registered capital between 5 to 10 million US dollars, 1% of the paid-in registered capital will be covered;

According to the Zhongshan Bureau of Commerce, from January to March 2022, Zhongshan approved 78 new foreign direct investment projects, a year-on-year decrease of 47.3%, but the amount of foreign capital actually used reached 318.69 million yuan, up 8.24% year-on-year.