Guangzhou Nansha New Zone and Free Trade Zone

2017·09 01 Location and 06 People’s Positioning Livelihood

02 Economic 07 Eco- Development environment

Industrial Profile of Nansha 03 Transportation 08 Hub Pattern

Urban 09 Opening and 04 Development Cooperation

05 Regional 10 Institutional Planning Innovation

01 Preferential Policies 1+1+10 Preferential Policies 1.1 Profile of Nansha--Location and Positioning

One of the three economic rims in , the state-level strategic new zone and pilot free trade zone located in the geometric center of PRD, with strategic significance equal to Putong and Binhai,

TianjinChina (Tianjin) Pilot Free Trade 2017 Zone An opening-up gateway hub of and a core city within Guangdong- Kong- Macao Greater Bay Area 2016-An urban sub-center , of

ShanghaiChina (Shanghai) The River Delta Pilot Free Trade 2014-A pilot free trade Zone Economic Rim zone

2012-A state-level strategic new zone

香港 The Delta Nansha, 澳门 2005-An administrative of Guangzhou China Economic Rim Guangzhou(Guangdong) Pilot Free Trade Zone 1993-Economic and technological development zone 1.1 Profile of Nansha—Location and Positioning

l Tip of the A-shape Pearl River estuary, 38 nautical miles to and 41 nautical miles to Macao

l 11 modernized cities of Guangdong-Hong Kong-Macao Greater Bay Area, 5 international airports and a high-end population of 70 million are within 100-km radius of Nansha, with accumulative GDP accounting for one seventh of the total in China

l Covering an area of 803 km2, with a permanent resident population of 780,000, with an available land for construction area of 90 km2 1.2 Profile of Nansha—Economic Development

l Nansha's GDP reached 65.364 billion in 13.8 1500 13.3 the first half of 2017, an increase of 11.58% 13 12.5 year on year 13 1279 l GDP growth rate ranks first among all 11 1300 districts in Guangzhou for consecutive 14 10.2 11 quarters. 1133 1100 1026 l Total industrial output value, fixed asset 9 investment, and general revenue of public 908 budget increased respectively by 3%, 10%, 900 and 5.5% year on year 809 7 l 28378 enterprises are newly established, over double of the total number since the 700 5 establishment of the Free Trade Zone 2012 2013 2014 2015 2016 GNP（RMB 100 million）and its growth rate（%） 1.3 Profile of Nansha--Transportation Hub

• one-hour life circle among cities within the Guangdong-Hong Kong-Macao Greater Bay Area • 84 major transportation projects worth 200.6 billion yuan well under way

• Connecting to city center of Guangzhou: 3 highways, 3 fast roads and metro line 18 under construction, allowing 30 minutes to the city center • Connecting to two banks of the Bay Area: - corridor, the 2nd Bridge, Nansha Port Railway under construction, Shenzhen- Railway，etc。 • Other major infrastructure projects: Phase one of the widening project for deep-water navigation channel to be put into use by the end of this year; Internal transportation network: As part of the urban road skeleton structure phase four of Nansha Port, international terminal, system, Phoenix Bridge 1, 2, 3, Phoenix Avenue, two bridges across Jiaomen river-and- inter-model terminal under Bridge and phase one of Bay Area Road are ready for use; Pearl Bay Bridge, construction; and early preparation for commercial Qingsha Road, Wanxin Avenue, Huanglan Road, Shazai Bridge 2, extension of Xixian Road and Metro Line 15 to begin construction airport and Nansha hub well under way 1.4 Profile of Nansha--Regional Planning The area of land is 570km2; the Free Trade ④ Zone, 60km2： ① ① The Harbor Block ② The Pearl Bay Start-up Area Block ⑥ ③ Nansha Hub Block ④ Qingsheng Hub Block ② ⑤ ⑤ Nansha Bay Block ⑥ Jiaomen River CBD Block ③ ⑦ Wanqingsha Bonded Processing and Block ⑦

① 1.5 Profile of Nansha--Urban Development

Fixed Asset Investment（RMB 100 million）

Year-on-year Growth of Fixed Asset Investment（%）

813 850 750 621 60 650 60.8 550 54 40 403 450 350 251 31 31 20 191 250 150 0 2012 11.2 2013 2014 2015 2016

• All-in-one planning framework and an integrated planning management mapping concept, with FTZ development planning and comprehensive transportation planning ready • Jiaomen River central area: 6.23 million m2, a headquarters clustering area and the city lounge • Pearl Bay start-up area: 1.71 million m2 , with trunk road network and major bridges ready for use • Nansha Bay area: Construction of international cruise home-port well underway, extension of Metro Line 4 to be operational in 2017 • Creating a high-level and international coastal eco-city pattern, supported with high-class public service system 1.6 Profile of Nansha--People’s Livelihood

• The expenditure on people's livelihood and other social undertakings （RMB 100 million） accounting for 88% of the fiscal expenditure 400 Taxes from Nansha 387 • 79 and medical service related projects under construction, 337 335 with investment volume reaching 5.44 billion yuan 350 298 • Employment rate of 78% for registered unemployed urban residents, ranking first for the 7th consecutive year in Guangzhou 300 251 • To control the property market size and housing price, and to increase 250 the supply for affordable housing 44875 Shenzhen 66326 200 2012 2015 2016 Shanghai 47393 , 103000 2013 2014 Shenzhen 30117 24395 l Guaranteeing 15% of “Reserve Land” in land acquisition and removal, and implementing the improvement project of countryside environment 21739 , 42000 Zhuhai l The state-level elementary education internationalization demonstration zone; the state-level health care tourism exemplary base; the state-level community 20456 Guangzhou 22898 governance and service innovation experimental zone l The Second Affiliated School to Normal University, Primary School 16605 Nansha, 15027 Affiliated to Guangdong University of Foreign Studies, Shrewsbury Guangzhou International Experimental School, Nansha branch of Guangzhou Women and 12106 16983 Children's Hospital, phase two of Nansha Central Hospital, Disease Control and Prevention Center, Nansha Library, Opera House and Museum, well under way Average price of new commercial housing in the 4th quarter of 2016 (yuan per square meter) 1.7 Profile of Nansha—Eco-environment

• 43.2% of green ratio for built-up areas in Nansha, 90 86 87.7 46 including 7,749 hectares of forest 80 42 76.4 42 • Winner of UN International Award for Liveable 71 40 Communities in 2011 70 38 • improvement, Phoenix lake and other ecological corridors along main roads in Nansha 60 33 34 31 • Wetland park, Huangshanlu national forest park and 50 30 other ecological attractions 2013 2014 2015 2016 • 30% of water, 5% of forest, 65% of flat ground, and 25% Excellent air quality rate（%） PM2.5 concentration（μg/m3） ecological reserve 1.8 Nansha Profile--Industrial Pattern

l Nansha has formed a industrial framework giving Percentage of the three main industries in GDP（%） equal emphasis to modern service industry (shipping logistics, cross-border e-commerce, financial lesing, Primary industry headquarters economy and ect.) and advanced 4.26% manufacturing industry (automobile manufacturing, ship repairing and building, maritime engineering Ter tiar y industr y 29.80% equipment, and nuclear power equipment). 3056 2928 Secondary 2900 2769 industry 65.94%

2474 l The investment in industrial technical transformation 2500 increased by 1.3 times, driving the increase of investment in industry by 34%. 2052 2100 l The increased value of primary industry enjoyed a year- on-year growth of 28.6%, contributing to over 53.2% of

1700 GDP growth. 2012 2013 2014 2015 2016 l Focus on developing high-end manufacturing, shipping GDP of industry of designated scale (100 million RMB) logistics, technological innovation, and financial business industry. 1.8.1Industrial Pattern--High-end Manufacturing Current Advantages Situation

• Whole automobile industry chain: • The world manufacturing center, Guangqi Toyota Automobile Town with complete supporting facilities. • The third largest ship-building maritime engineering base: Longxue • Delta landform, few mountains Island Ship-building Base and flat ground, and stable climate. • Shidle tunneling machine and railway transport equipment • Obvious late-mover advantages, manufacturing of Herrenknecht and sufficiant available land. Engineering • Policy advantages of free trade Corporation zone, flexible investment, and • Manufacturing of nuclear power low risk. equipment of Dongfang Electric Corporation and Vallourec 1.8.2 Industrial Pattern--Harbor-shipping Logistics Current Situation 35000 1400 • Nansha Port: handled up to 12 million TEU in 30393 2016, ranking the 12th among single port in the 30000 28161 1300 world, the fastest-growing port. 25758 1273 • 81 international liner routes, 31 ”dry ports” 25000 1200 • Shazai Island: the largest professional 20993 1177 automobile ro-ro terminal in China 20000 1100 1115 • Guangzhou Shipping Transaction Bureau: the 15576 largest ship transaction platform in southern 15000 1032 1000 China • Cruise home-port: rank the third in terms of 961 10000 900 number of travelers in China 2012 2013 2014 2015 2016 Harbor freight volume (10,000 tons), number of Advantages containers (TEU) • Geometric center and transportation center in , beneficial to cargo gathering and distribution • The “single window” of international trade and “three mutuals”customs clearance mechanism • The location of freight index of pearl river navigation, lower shipping management risk 1.8.3 Industrial Pattern--Technological Innovation

Current Advantages Situation • Policy interaction and advantages superposition between free trade zone and self-dependent innovation demonstration area. • 99 munipal enterprise technology R&D centers, 1/4 of all new R&D institutions of • Adjancent to college town to the north, Shenzhen to the east, broad Guangzhou. hinterland, beneficial to industrialization of innovative technology.

• 160 high-tech enterprises, the GDP of • Has built the China Internet of Things Names Service Platform and Nansha products of high-tech enterprises accounts sub-center of Guangzhou supercomputer center. for 55.4% of GDP. • High and extensive rewards to top talents and badly-needed talents. • R&D innovation platform involving Chinese Academy of Sciences, universities and • Sufficient local finance, annual rewards budget in the amount of over one colleges, and international cooperation has billion yuan for supporting technical R&D. begun to take shape. • Build startup investment guidance fund and the first pilot of technology service system of Guangdong Province. • Has gathered 14 experts of “Thousand Talents program” and 2 provincial innovation and scientific research teams. 1.8.4 Industrial Pattern--Financial Business Current Situation Situation Current • By May, 2017, there were 2138 financial and similar financial enterprises. • Has built 56 cross-border financial innovation pilots like cross-border RMB direct lending. • Financial leasing industrial cluster involving oer 100 billion yuan; SPV has introduced 25 planes. • 70 investment projects of Global 500, and 98 headquarters enterprises.

• Special financial and headerquarters economic policies of pilot free trade zone. Advantages • Finance serves the real economy and the obvious function of globalization management. • The first pilot of unified management of internal and external financial leasing in Guangdong Province. • Central location avantages of the economic circle, beneficial to the operation of enterprise headquarters. • Open to the outside world, beneficial to the international business operation of large enterprises. 1.9 Nansha Profile--Open and Cooperative 300 Total import-export volume (100 million USD) 34 273 Contractural foreign capital (100 million USD) 270 30 246 32

240 28 26 210 210 22

180 159 18 • Nansha accounts for 1/5 of total import-export volume of Guangzhou, contributing 150 138 17 14 to over 60% of increased export. 16 15 • There are 1071 registered cross-border e-commerce enterprises; “Nansha mode” 120 10 has been copied nationwide. 2012 2013 2014 2015 2016 • Nansha has built CEPA foods inspection and supervision scheme, and the innovation• Collaboratively promote the planning of surrounding cities with Nansha as center. and entrepreneurship alliance among colleges and universities in Guangdong, Hongkong, and Macao. • Promote the development of Guangdong free trade zone and policy extension with Nansha as core. • International capacity and technology cooperation center, “Belt and Road” city • Extend admission limitations to professional service institutes of Hongkong port alliance. and Macao, and mutual recognition of job qualification. • Accelerate building the area of deep cooperation between Guangdong and Hongkong; introduce service enterprises from Hongkong and Macao. • Build a one-stop platform for “going global” to establish technical cooperation with international investment. • Attract foreign affairs and trade institutes of all countries to set up business representative offices in Nansha. • Promote the establishment of exchange and cooperative mechanism for global free trade zones. 1.10 Nansha Profile--Institutional Innovation

16000 Number of increased registered 14188 1800 • Carry out the negative list manage pattern and “the system of a unified business license with a unified social credit code” to 14000 enterprises 1600 1590.5 domestic and foreign investment. Increased total registered capital (100 1400 12000 million RMB) • Enterprises set up “one acceptance window”, Nansha ranks 1200 10000 the first in terms of the number and speed of admission jointly running certificates. 7122 1000 8000 • The international trade mechanism of “single window” and 736.7 800 6000 “three mutuals” helps Nansha rank the first nationwide in 600 terms of the customs clearance efficiency. 4000 1631 400 • Nansha is the first area in China to implement “the Internet 1150 113 2000 684 53 200 plus easier customs clearance”, inspection and quarantine ​, 2012, 1 175.6 “smart inspection port”, tracing to the source of quality of 0 0 global imported and exported commodities, and government's 2012 2013 2014 2015 2016 paying for inspection service. • Carry out the comprehensive administrative law enforcement and process and post-project supervision with credit supervision as core. • Carry out the service of universally available webpage exclusive to enterprises, and “electronic tax bureau” in the whole process. • Nansha has the first free trade zone court and procuratorate, and Nansha international arbitration center, and a join operation pilot of law firms in Guangdong, Hongkong, and Macao. • Nansha actively explores the cooperation model between government and social capital in such fields as infrastructure construction and zone development. 2.1 Main Policies for Promoting Investment 1+1+10 Preferential Policies Main features of policy system Sound system 1 programmatic document, 1 management method of industrial development fund, and 10 industrial policies. Wide coverage The system covers 1 Nansha key development fields and 3 similar industrial promotion policies, and provide sufficient guarantees to industrial introduction in talents, carriers, and information. Strong pertinence The system gives “customized” supporting policies to enterprises and projects which have great contribution. An enterprise can simultaneously enjoy several supporting policies given by local and higher-level government. Awards given to top managers and backbones of enterprises may reach 100% of tax, and the number of awards winner and the amount of awards are not limited. Convenient operation The policy window implements the service mechanism of “one- window acceptance, internal transfer, integrated service, and finishing within limited time”, ensuring enterprises enjoy corresponding supporting policies on time. 2.1 Supporting Policies to Headquarters Enterprises

Financial Incentives to Headquarters

Incentives The highest incentives Awards for settling down in At most 20 million yuan. Nansha Awards for economic Give enterprises 95% of their economic contribution contribution to Nansha for consecutive 5 years. Awards for improving energy At most 20 million yuan. level Subsidies for office At most 10 million yuan. occupancy Awards for listed enterprises At most 5 million yuan. 2.1 Supporting Policies to Technology Enterprises

Incentives to Technology Enterprises

Incentives The highest incentives New R&D institutions established in Nansha by national research At most 100 million yuan. institutions, well-known domestic and foreign colleges and universities, or world-renowned scientists. Subsidies for land occupancy of new R&D institutions. At most 10 million yuan. Subsidies for capital investment. At most 3 million yuan. Awards to researches. At most 5 million yuan for each agency each year. New R&D institutions who provide the market with such technology At most 2 million yuan. services as technical R&D, inspection and testing, achievement transformation, and scientific and technological consultation. Obtain project capital deployment of public service platform set up At most 5 million yuan. by departments of national development and reform commission and industry and information technology at different levels. 2.1 Supporting Policies to Financial Enterprises

Incentives to Financial and Similar Financial Enterprises

Incentives The highest incentives Awards for settling down in At most 18 million yuan. Nansha Awards for economic contribution Award enterprises 100% of economic contribution to Nansha in the first 3 years, and then award them at most 70% of economic contribution to Nansha in the next 2 years. Awards for improving energy level At most 20 million yuan. Subsidies for office occupancy At most 10 million yuan. Awards for listed enterprises At most 5 million yuan. 2.1 Supporting Policies to Talents

Supporting Incentives to Talents

Incentives The highest incentives Guangzhou innovation and entrepreneurship Project expenditure subsidies: 30 million yuan for teams, leading talents support plan. 1 million yuan for talents. Guangzhou preferential treatment to top-level Monetary subsidies for renting a 200 –square-meter talents. house. Guangzhou talents green card system. The same right as those with Guangzhou family register to buy a house and car. Policies of supporting top-level leading talents. Subsidies in the amount of 2 million yuan for buy a house.

Nansha talents awards (cover all top managers Equivalent to awards of 40% of individual income tax, at with annual tax basis surpassing 300,000 yuan) most 2 million yuan. Subsidies for renting and living to invited talents to Equivalent to: a house with three bedrooms for a doctor, Nansha. a house with two bedrooms for a master, and a house with one bedroom or a high-end single room for a bachelor. Talents invited to Nansha new R&D institutions. 5 million yuan. Note: the above content is abstract of part policies, see details in relevant policy documents. Thank You!