Regulation of Yunnan Province on the Promotion of In-coming Investments

· Area of Law： Reform and Opening-up

· Level of Authority： Provincial Local Regulations

· Date issued：03-31-2006

· Effective Date：06-01-2006

· Status： Effective

· Issuing Authority： Yunnan Province

Announcement of the Standing Committee of Yunnan Provincial People's Congress
(No. 36)
The Regulation of Yunnan Province on the Promotion of In-coming Investments, which was deliberated and adopted at the 21st meeting of the Tenth Standing Committee of Yunnan Provincial People's Congress on March 31, 2006, is hereby promulgated and shall come into force as of June 1, 2006.
Standing Committee of Yunnan Provincial People's Congress
March 31, 2006
Regulation of Yunnan Province on the Promotion of In-coming Investments
(Adopted at the 21st meeting of the Tenth Standing Committee of Yunnan Provincial People's Congress on March 31, 2006)
Chapter I General Provisions
Article 1 This Regulation is formulated according to the relevant laws and regulations and by considering the actual situation of this Province for the purpose of promoting in-coming investments, safeguarding the lawful rights and interests of in-coming investors, creating a good investment environment and accelerating the economic and social development.
Article 2 The “in-coming investments” mentioned in this Regulation refers to the direct investments in the administrative region of this Province by the natural persons, legal persons and other organizations of foreign countries, Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan Area and other provinces, autonomous regions and municipalities directly under the Central Government. The natural persons, legal persons and other organizations mentioned in the preceding Paragraph are referred to as in-coming investors, and the enterprises established thereby within the administrative region of this Province are referred to as in-coming investment enterprises.
Article 3 The in-coming investments within the administrative region of this Province shall be governed by this Regulation.
Article 4 The people's governments at or above the county level shall formulate the plans for in-coming investments and incorporate them into the plans for national economic and social development.
The People's Government of this Province shall give key support to the work relevant to the promotion of in-coming investments of national autonomous areas.
Article 5 The economic cooperation and management department under the People's Government of this Province shall be responsible for the coordination, organization, administration and services of in-coming investments within the whole province. The economic cooperation and management department or the investment promotion department of each prefecture (city) or county (city or district) shall be responsible for the work regarding in-coming investments of its own administrative area in light of its authorities. The relevant administrative departments under the people's government at or above the county level shall, in light of their respective authorities, be responsible for the work regarding the administration of and services for in-coming investments.
Article 6 In addition to enjoying the relevant policies of the State, the in-coming investment enterprises can also enjoy the preferential policies of this Province according to the provisions.
The in-coming investment enterprises shall abide by the relevant laws and regulations, operate according to law, be honest and faithful, and shall not obtain the treatment of in-coming investments by false investments or other illegal means.
Article 7 The people's government at or above the county level shall grant awards and prizes to the in-coming investment enterprises that make significant contributions to the economic and social development and the entities and individuals that make remarkable achievements in the capital introduction and investment promotion.
The local people's government shall, according to the relevant provisions, grant awards to those persons who successfully introduce the capital and promote investments.
Chapter II Scope and Method of Investments
Article 8 An in-coming investor is allowed to invest within the administrative region of this Province in any filed or project except those as prohibited from being invested in by the law, regulation, the State or this Province.
The in-coming investors are encouraged to invest in the following fields:
(1)tobacco-supporting industry, mining industry, power industry, biological resources innovation industry and tourism industry;
(2)agriculture industry and forestry industry;
(3)new and high technological industry and information industry;
(4)cultural industry;
(5)educational and health undertakings; and
(6)construction of infrastructure and ecological environment.
The People's Government of this Province shall timely adjust the investment fields and projects to be encouraged according to the plans for the promotion of in-coming investments, and announce them to the general public.
Article 9 The in-coming investment enterprises are encouraged to participate in the construction of China-ASEAN Free Trade Area, the trade and investment activities of international regional cooperation, such as Mekong Sub-regional Cooperation as well as the relevant activities of domestic regional economic and cooperative organizations by making use of the regional conditions of Yunnan Province.
The multinationals are encouraged to come to this Province to make investments.
Article 10 The in-coming investment enterprises are encouraged to carry out the exchange and cooperation with domestic and overseas institutions of higher education, scientific and research institutions and enterprises and to develop the scientific and technological enterprises or establish research and development institutions.
Article 11 The in-coming investors are encouraged to establish solely-invested or equity joint industrial development funds, risk investment funds and guarantee institutions, etc.
The in-coming capital is encouraged to participate in the reform and reorganization of state-owned enterprises.
Article 12 The in-coming investors may, in light of their own conditions, adopt the following investment methods or varieties:
(1)sole investment, equity joint venture, contractual joint venture and partnership;
(2)participating in the investment by industrial property right, non-patent technology or other intangible assets;
(3)processing trade;
(4)participating in the project construction by various financing methods, such as the construction-operation-transfer or the transfer-operation-transfer;
(5)participating in the restructuring, reorganization or reconstruction of enterprises by various means, such as stock participation, stock controlling, joint venture, merger, acquisition, lease, trust and project contracting; and
(6)establishing the headquarters, regional headquarters and research and development centers of the enterprises.
Chapter III Governmental Services
Article 13 The people's governments at various levels shall continuously strengthen the infrastructure construction and create a good investment environment for in-coming investment enterprises.
The people's governments at various levels and the relevant departments shall carry out the administration according to law and be honest and creditworthy, simplify the administrative examination and approval formalities for in-coming investment matters, enhance the efficiency in handling affairs, abide by the principles of openness, fairness and equity, provide good services to in-coming investment enterprises, and protect the lawful rights and interests of in-coming investment enterprises.
The administrative organs of various development zones shall formulate and improve the measures regarding the land, capital, technology and talents, etc. for the promotion of in-coming investments, and play the demonstration and radiation roles of capital absorption and investment introduction bases.
Article 14 The economic and cooperative management department under the People's Government of this Province shall organize and coordinate with the relevant departments and entities to carry out the capital absorption and investment introduction, economic cooperation and regional cooperation.
The service center for in-coming investments of this Province shall provide centralized, convenient and efficient services for the in-coming investment activities.
The public information service network for in-coming investments shall timely publish the investment policies, industrial development plans, investment fields and projects, cooperative projects, and other information.
Article 15 The commercial administrative department of the people's government of this Province, the prefecture or the city shall, according to the relevant laws and regulations, examine and approve the establishment, alteration and termination of in-coming investment enterprises.
The commercial administrative department shall provide guidance and assistance to in-coming investment enterprises in the aspects of the import and export of products and the participation in the international trade, and grant support to the in-coming investment enterprises to invest abroad.
Article 16 The administrative department for industry and commerce under the people's government at or above the county level shall carry out the registration, supervision and administration of in-coming investors, and provide good services.
Article 17 The development and reform commission and the economic commission under the people's government at or above the county level shall guide the in-coming investment activities, and provide consultancies and services in the aspects of the relevant examination and approval and the archival filing for the in-coming investment enterprises.
Article 18 The departments of public finance under the people's governments at various levels shall, in light of the requirements and the local financial status, report the arrangements on the special funds for the promotion of in-coming investments to the people's governments at corresponding levels.
Article 19 The statistical administrative department under the People's Government of this Province shall, together with the economic and cooperative management department and the commercial administrative department under the People's Government of this Province, do a good job in the statistical work related to the in-coming investments, and establish and improve the statistical system and evaluation measures for in-coming investments.
Article 20 The department of civil affairs under the People's Government of this Province shall be responsible for the registration and administration of the chambers of commerce, leagues and promotion associations launched and organized by the in-coming investment enterprises within China; and the economic and cooperative management department under the People's Government of this Province shall be responsible for the affairs administration of and the services for the chambers of commerce, leagues and promotion associations launched and organized by the in-coming investment enterprises within China.
Article 21 The personnel administrative department and the administrative department of labor and social security under the people's government at or above the county level shall, in light of the requirements of in-coming investment enterprises, treat the in-coming investment enterprises equally with other enterprises within this Province when providing the services with respect to the exchange of talents, personnel agency, appraisal and determination of professional titles, labor and employment and social security, etc.
The educational administrative department under the people's government at or above the county level shall formulate measures to guarantee the right to receive education of the children of in-coming investors.
Article 22 The administrative departments of culture, radio and television, press and publication and telecommunications under the people's government at or above the county level shall fully make use of the newspapers and journals, radio, television and internet, etc. to carry out the propaganda of in-coming investments.
Article 23 The administrative departments of industry and commerce, taxation and quality and technical supervision, etc. under the people's government at or above the county level shall handle the relevant law enforcement issues and services required by in-coming investment enterprises within the prescribed time limit; and shall notify the in-coming investment enterprises of the handling conditions within 15 days if there is no time limit.
Article 24 The administrative departments of patent, trademark, copyright or any other kind of intellectual property as well as the administrative departments related to the protection of intellectual property, such as the customs house and the public security organ, under the people's government at or above the county level shall strengthen the protection of patent, trademark, copyright and other intellectual property of in-coming investment enterprises, investigate and handle the acts damaging intellectual property and maintain the lawful rights and interests of in-coming investment enterprises.
Article 25 The relevant administrative departments shall treat the in-coming investment enterprises equally with the same kind of enterprises within this Province in the aspects of qualification appraisal, examination and approval of operational powers, project bidding and business undertaking.
Article 26 The relevant administrative departments shall treat the in-coming investment enterprises equally with the same kind of enterprises within this Province in the aspect of the applications for the special funds according to the provisions.
Article 27 The relevant administrative departments at the provincial level shall give support to in-coming investment enterprises in the aspects of the reduction of expenses, the peel-off of debts, the input of good assets and the relocation of abundant employees when the in-coming investment enterprises list in the stock market or reorganize the listed companies within this Province.
Article 28 The administrative and supervisory department and the tip-off center for the improvement of investment environment under the People's Government of this Province shall accept, investigate and handle the tip-offs of in-coming investment enterprises, and notify the disposal results to the tip-offers and the relevant administrative departments.
Article 29 The economic and cooperative management department and the administrative and supervisory department under the People's Government of this Province shall establish the transfer system, and shall, when providing services for in-coming investment enterprises or accepting the tip-offs thereof, transfer the matters involving the functions of other departments to the relevant administrative departments for handling according to the provisions on the transfer system. And the disposal results shall be notified to the transferors and in-coming investment enterprises.
Chapter IV Social Support
Article 30 The social groups, enterprises, public institutions, other organizations and individuals shall cooperate with the relevant departments in creating a good environment for in-coming investments.
Article 31 The intermediary institutions shall create conditions for carrying out the cooperation with domestic and overseas craft brothers, enhance the ability and level of service and provide services to in-coming investment enterprises.
Article 32 The operational entities of water, power, gas and other public undertakings shall incorporate the demands of in-coming investment enterprises into the plans and arrangements of the same industry and region.
Article 33 Various educational institutions (schools) shall maintain the right to receive education of the children of in-coming investors.
Article 34 The labor union shall strengthen the relevant work on labor union of in-coming investment enterprises, promote the in-coming investment enterprises to establish coordinative and stable labor relationship and maintain the lawful rights and interests of employees.
Article 35 A financing and guaranty institution shall, according to the provisions of the State, provide financing and guaranty services to qualified in-coming investment enterprises so as to widen the financing channels of in-coming investment enterprises.
Chapter V Protection of Rights and Interests
Article 36 The people's government at or above the county level shall strengthen the supervision and inspection of the conditions about the implementation of this Regulation by its subordinate departments and the people's governments at lower levels. And the competent administrative department at a higher level shall strength the supervision and inspection in the aforesaid regard of the competent administrative departments at lower levels.
Article 37 An administrative organ shall incorporate the work regarding the protection of lawful rights and interests of in-coming investment enterprises into its work responsibility system, and timely and fairly investigate the cases in which the rights and interests of in-coming investment enterprises are damaged.
Article 38 A judicial organ shall timely handle the cases involving the rights and interests of in-coming investment enterprises according to the laws, enforce the laws fairly and maintain the lawful rights and interests of in-coming investment enterprises.
Article 39 The administrative departments of supervision, price and public finance shall deter and timely investigate and handle the illegal acts upon the in-coming investment enterprises such as illegal collection of fees, illegal imposition of fines or illegal apportionment, or illegal inspections that damage the decision-making right of the enterprises.
Article 40 An in-coming investment enterprise has the right to decide whether to take part in, accept or refuse various appraisals through comparison, awards, donations or financial support, etc.
Article 41 No entity or individual may, without legal basis or statutory procedures, order the bank to transfer or freeze the assets of in-coming investment enterprises and investors.
Article 42 In case an in-coming investment enterprise deems that the administrative organ or any of its functionaries implements any specific administrative act and damages its lawful rights and interests, it can complain it to the tip-off center for the improvement of investment environment or any other competent organ under the administrative supervisory department of the People's Government of this Province or may apply for an administrative review or lodge an administrative lawsuit.
In case an in-coming investment enterprise deems that the regulative documents formulated by the administrative organ damage its lawful rights and interest, it may reflect it to the administrative organ at the next higher level of the formulation organ or the standing committee of the people's congress at the same level.
Article 43 In case an in-coming investment enterprise suffers great losses in its production and businesses due to serious natural disasters, serious epidemics or other force majeure, it can enjoy the same treatments as the similar enterprises of this Province in the aspect of various relief and assistance.
Chapter VI Legal Liabilities
Article 44 Any state functionary who neglects his duties, misuses his authorities, seeks for private interests or resorts to frauds in the work relating to the promotion of in-coming investments shall be given an administrative sanction. If a crime is constituted, he shall be subject to criminal liabilities.
Article 45 In case of any illegal collection of fees, illegal imposition of fines or illegal apportionment, or illegal inspections upon the in-coming investment enterprise, the relevant administrative department shall give punishment according to law.
Article 46 In case the administrative department of industry and commerce, taxation or quality and technological supervision under the people's government at or above the county level fails to handle the problems in the aspect of law enforcement or services required by the in-coming investment enterprise within the prescribed time limit, the principal and other persons held directly responsible shall be subject to administrative sanctions.
Article 47 In case an in-coming investment enterprise obtains the treatment of in-coming investment by false investments or any other illegal means, the relevant administrative department shall cancel the treatment, recover the illegal proceeds and impose a punishment on it according to the relevant laws or regulations.
Article 48 In case anyone resorts to frauds to cheat any award or honorable title in the capital introduction and investment promotion, the organ granting awards and prizes shall cancel the aforesaid award or honorable title, recover the bonus, and impose administrative sanctions or disciplinary sanctions on the principal and other persons held directly responsible.
Chapter VII Supplementary Provisions
Article 49 The People's Government of this Province shall, according to this Regulation, formulate and improve the policies and measures for the promotion of in-coming investments, and announce them to the general public.
Article 50 This Regulation shall come into force as of June 1, 2006. The Regulation of Yunnan Province on In-coming Investments adopted at the fifth meeting of the Ninth Standing Committee of Yunnan Provincial People's Congress on September 25, 1998 shall be simultaneously repealed.