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The State Council's Approval of “The Overall Development QIANHAI FINANCIAL POLICIES The State Council’s Approval of “The Overall Development Plan of Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone” (Guo Han [2010] No. 86 August 26, 2010) Guangdong Provincial People’s Government, National Development and Reform Commission: We have received the document “Call for Instruction Regarding the Overall Development Plan of Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone” (Fa Gai Di Qu [2010] No. 1814) and have the following remarks: 1. We have approved the “Overall Development Plan of Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone” on principal, hereinafter referred to as the “plan”. Please carry out this plan with dedication. 2. The implementation of the plan must be done under the spirit of socialism with Chinese characteristic and the scientific development outlook. Within the “One Country, Two Systems” framework, the plan should further strengthen the partnership between the province of Guangdong and Hong Kong, using the development of modern service industry to facilitate the upgrade of industrial structure. The plan should help create a new phrase of the opening up process, providing a fine example of shift in economic development model and the implementation of the scientific development outlook for the nation. Qianhai should take full advantage of the strengths and functions of Hong Kong as an international economic center; using the plan as a platform to promote partnership and integrated development with Hong Kong. The goal is to turn Qianhai into a pilot area for modern service industry under the partnership between Guangdong and Hong Kong. 1 Qianhai will play a leading role in promoting the partnership between Hong Kong and mainland China in the area of modern service industry. Qianhai must strengthen its planning, focus on its strengths and develop the overall economy while facilitating the development of modern service industry as well as strengthening the efficiency in resource allocation and utilization. The goal is to turn Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation into a key national base for modern service industry and an influential manufacturing service industry center, playing a leading role in the upgrade of our nation’s modern service industry. Being part of the Special Economic Zone that always acts as a pioneer, Qianhai should seize the opportunity to develop its modern service industry while exploring the system and mechanism that can facilitate the development of modern service industry, providing new experience for the development of modern service industry across the nation. 3. The Guangdong Provincial People’s Government must play a leading role in the implementation of the plan, by creating a sound working system and having a clear set of responsibilities. Following the development positioning and core industries introduced by this plan, the Guangdong Provincial People’s Government must work hard to provide favorable conditions for Qianhai and implement the plan in a timely fashion, taking full advantage of Qianhai’s leading role in industrial upgrade in the Pearl River Delta. The Shenzhen Municipal People’s Government must follow the spirit of this approval, implementing the plan in a timely fashion. They must aim high and come up with a unified plan; then they should coordinate and implement the plan step by step. They should also improve the democracy and the legal system while taking full advantage of the Special Economic Zone’s legislative right assigned by the National People’s Congress to provide a legally sound environment for the development of Qianhai’s modern service industry. One must seek approval according to relevant rules if the legislation exceeds the scope of the central government’s authorization. 4. Departments from the State Council must play their part in providing support and guidance to the development of Qianhai. One must come up with a coordination mechanism that is led by the National Development and Reform Commission and is 2 QIANHAI FINANCIAL POLICIES joined by related departments from the State Council, Hong Kong SAR Government, Guangdong Provincial People’s Government and Shenzhen Municipal People’s government. This mechanism should help solve the problems faced when implementing the plan and provide active support in terms of policy implementation and project arrangement, creating a favorable policy environment that can help facilitate the development of Qianhai modern service industry. One must follow and analyze closely the implementation of the plan, with focus on supervision and evaluation. During the process of implementation, one must focus on studying the new situations, solving new problems, forming new conclusions and reporting to the State Council in a timely manner when faced with significant issues. Taking advantage of the comparative advantages of Shenzhen and Hong Kong, the decision to develop modern service industry in Qianhai is a significant move in a new phase of the reform and opening up process. All related parties must recognize the significance of development of Qianhai; one should see the implementation as an opportunity to innovate, to cooperate closely and to work diligently to promote the development of modern service industry while continuing to explore the new development model under the scientific outlook. State Council of People’s Republic of China August 26, 2010 3 Notice Issued by the National Development and Reform Commission Regarding Printing and Issuing of “The Overall Development Plan of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone” (Fa Gai Di Qu [2010] No. 2415 October 10, 2010) People’s Governments of the Provinces, Autonomous Regions, Municipalities Directly under the Central Government, and Cities Separately Listed on the State Plan, Ministries and Commissions of the State Council, and Departments Directly under the State Council: “The Overall Development Plan of Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone” (hereinafter referred to as the “plan”) has been approved by the State Council. According to the spirit of The State Council’s Approval of The Overall Development Plan of Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone (Guo Han [2010] No. 86), we proceed to distribute the plan to you and have the following announcement to make: 1. Located at the west part of Shenzhen and on the east shore of the Pearl River while being very close to both Hong Kong and Macau, Qianhai enjoys unique geographical advantages with enormous potential for development. Guangdong Provincial Government and Shenzhen Municipal Government, together with departments of the State Council, must study closely the State Council’s approval of the plan; one should seize the opportunity that comes with the 30th anniversary of establishment of the Shenzhen Special Economic Zone, combining the implementation of planning with opening up further, promoting innovation within the current system and mechanism as well as exploring the new development model under the scientific outlook. One must strengthen the partnership between 4 QIANHAI FINANCIAL POLICIES Guangdong and Hong Kong so they can promote the development of modern service industry, gradually turning Qianhai into an innovative area for modern service industry system and mechanism, a concentrated area for development of modern service industry, a driving force for closer partnership between Hong Kong and mainland as well as industrial upgrade within the Pearl River Delta area. The ultimate objective is to realize the strategic goal of turning Qianhai into a pilot area for modern service industry under the partnership of Guangdong and Hong Kong. 2. We would like to urge the Guangdong Provincial Government to play a leading role in implementing the plan and to complete all the objectives mentioned in the plan. One must establish a working system and lay out all the responsibilities clearly. One must follow the development positioning and major industries mentioned in the plan to build the Qianhai Shenzhen- Hong Kong Modern Service Industry Cooperation zone. One must ensure that Qianhai’s governing institution is entitled to favorable policies that are equivalent to what a city separately listed on the State Plan would be entitled to by creating favorable conditions, decentralizing administrative privilege, simplifying the review process and providing favorable policies. Together they should help build a system and mechanism that promotes the concentrated development of Qianhai modern service industry. 3. As the main body of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, the city of Shenzhen must implement the plan in a timely manner and complete the objectives laid out in the plan. First, one must come up with an innovative management model for the development of Qianhai; one must aim high, coordinate the planning and implement step by step. One must come up with a centralized system and mechanism that could manage taxation, land, planning and human resources efficiently and flexibly, showing the advantages of combining executive management and market operation. This approach should enable Qianhai to develop quickly in a sound fashion. Second, one must speed up the planning and construction of major projects such as the Qianhai Bonded Port Area, the Shenzhen Hong Kong Western Express Railway, the Suiguanshen (Guangzhou, Dongguan, Shenzhen) Intercity Railway and Qianhai Port Complex. Third,
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