Policy Interpretation: Shaoguan City Successfully Set Up National Demonstration

         On August 26, 2019, the National Development and Reform Commission issued the "Notice on Further Promoting the Construction of Demonstration Zones of Industrial Transformation and Upgrading" to support the construction of the second batch of industrial transformation and upgrading demonstration zones in the following cities, namely West of Beijing, Dalian Coastal Areas, Daqing City Heilongjiang Province, Xuzhou City Jiangsu Province, Pingxiang City Jiangxi Province, West of Henan Province, Shaoguan City Guangdong Province, Liupanshui City Guizhou Province. Shaoguan was the only city in Guangdong Province that had been selected as a demonstration zone. What preferential policies will the city enjoy after being included in the list of demonstration zones?
        In accordance with the document issued by the central government, in the next few years, the five ministries of the central government will support the cities mentioned above in terms of industrial policies, innovation policies, investment policies, financial policies, land policies, central special funds, policy implementation, project arrangements, and institutional innovations. For those demonstration zones that achieve remarkable results, stronger preferential policies will be put forward to support their further development. Typical experiences and featured practices will be promoted across the state.
        In terms of industrial policies, the Ministry of Industry and Information Technology will build a number of new industrialization demonstration bases and manufacturing innovation centers relying on the demonstration zones. In terms of innovation policies, the Ministry of Science and Technology will set up pilot projects for the transformation of scientific and technological achievements and incubation projects for innovative SMEs, and support the construction of “Mass Entrepreneurship and Innovation” in the demonstration bases in the above mentioned cities. In terms of financial policies, the China Development Bank will issue preferential policies to the demonstration zones in terms of total financing, credit access, and industrial investment funds. In terms of land policies, the Ministry of Natural Resources will support the pilot projects for the redevelopment of urban low-efficiency land and the reclamation of obsolete industrial and mining land. In terms of investment policies, the National Development and Reform Commission will set up special funds to support the construction of public infrastructure, public service facilities and the upgrading of innovation capacity of enterprises of the demonstration zones.
        In terms of investment policies, based upon the financial support given to the first batch of pilot zones from the central government, it is expected that at least 60 million to 100 million yuan of central special funds will be given to Shaoguan City each year in the future. According to the notice issued by the National Development and Reform Commission, in 2020, the central government will focus on supporting the construction of public infrastructure, public service facilities and the improving of innovation capability of enterprises in the city's industrial parks by issuing funds within the budget of the central government. At present, in accordance with the requirements of the National Development and Reform Commission, Shaoguan municipality has submitted a number of project proposals and been listed in the bank of national major construction projects, hoping to get more central financial support in 2020.
        In addition, the central government requires the provincial government that has set up demonstration zone to formulate related supporting measures and prioritize the construction of pilot zones of various reform and innovation in the demonstration areas and industrial parks. The provincial government should guide the cities where the demonstration zones are located to accelerate the implementation of various preferential policies according to the construction plans, striving to make breakthroughs in key areas.