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State Preferential Tax Policies for High-Tech Zones

2012-06-20 16:53:07

I. The preferential policies for foreign-invested enterprise income tax relief

1. For foreign-invested and productive high-tech enterprises, with operating period over a decade, the enterprises tax rate shall reduced to 15%. In new-founded productive foreign-invested high-tech enterprises with producing and operating period over a decade, the corporate income tax shall be exempted in the first two profitable years; the corporate income tax shall be reduced to 7.5% from the third to the fifth profitable year; Enterprise which still are advanced technologies companies after tax breaks expire, the enterprises income tax may be extended for three years at the reduced rate of 10% with relevant approval. ("The Notice about How to Apply Preferential Policies for High-tech Enterprises from General State Taxation Administration" issued by State Administration of Taxation[1994] No. 151 1994.6.29)
2. For foreign-invested export enterprises, after tax-free period, their enterprises income tax rate shall be reduced to 10% if their export production value occupy more than 70% of the year's total value. ("Implementation Rules for Foreign-invested Enterprises and Foreign Enterprises Income Tax Law of the People's Republic of China" State Council Decree No. 85 issued 1991.6.30)
3. For foreign-invested enterprises suffering loss, they can make up the loss with the next year's proceeds, if the next year's incomes are not enough to do that; they can make up it year after year within 5 years. ("Foreign-invested Enterprises and Foreign Enterprises Income Tax Law of The People's Republic of China" passed in the fourth meeting of Seventh People's Congress on April 9th, 1991, and published in The People's Republic of China Presidential Decree No. 45 the same day.)
4. For foreign-invested enterprises located in the central and western areas of the country and engaged in encouraged industries by the country, their enterprises income tax shall be reduced to 15% during 2001 to 2010.("The Notice on Preferential Tax Policies for Developing the Western Region from General Administration of Customs of General State Taxation Administration of The Ministry of Finance" FT [2001] No. 202 2001.12.30)
5. The enterprises reinvested by foreign-invested enterprises in central and western regions, with a proportion of foreign investment more than 25%, can enjoy the treatment of foreign-invested enterprises. ("The Notice on Further Encouraging Foreign Investment from Ministry of Foreign Trade and Other Departments and Transmitted by the State Council General Office" issued by the State Council General Office [1999] No. 73 1999.8.20)

II. Tax refund policy for the reinvestment of foreign-invested enterprises

If foreign investors put the profits gained from the enterprises directly into the same enterprises to increase the registered capital or build other foreign-invested enterprises with operating period of no less than five years, 40% of the paid income tax of the reinvestment shall be refunded with the approval of tax authorities. If foreign investors put the profits gained from the enterprises into launching, expanding export enterprises or advanced technology enterprises the paid income tax of the reinvestment shall be fully refunded. ("Foreign-invested Enterprises and Foreign Enterprises Income Tax Law of The People's Republic of China" passed in the fourth meeting of Seventh People's Congress on April 9th, 1991, and published in The People's Republic of China Presidential Decree No. 45 the same day.)

III. Preferential policies of the exemption from the local income tax, urban real estate tax and vehicle license tax the for foreign-invested enterprise Foreign-invested enterprises, excepting the entertainment industry, service industry and urban real estate development industry shall enjoy the exemption from local income tax, urban real estate tax and vehicle license tax. (Shaanxi Tax [2003] No. 20)

IV. Preferential policies for domestic procurement for foreign-invested enterprises
If foreign-invested enterprises purchase China-made equipment in the total investment and such equipment is in the duty-free catalog, the enterprises can enjoy a full refund of value added tax and get a corporate of income tax credit in accordance with the provisions. ("The Notice on Further Encouraging Foreign Investment from Ministry of Foreign Trade and Other Departments and Transmitted by the State Council General Office" issued by the State Council General Office [1999] No. 73 1999.8.20)

V. Policies about tariff reduction
1. Foreign-invested projects, government loans, loans from international financial organizations and domestic investment projects, the imported self-use equipment and a reasonable package, spare parts shall be exempted from tariffs and import VAT. ("The Notice on the Adjustment of Tax Policies about Importing and Exporting Equipments from State Council" issued by State Council[1997] No. 37)
2. the Importing of self-use equipments and supporting techniques, fittings, spare parts that can not be produced in China or whose performance can not meet the needs to transform the established foreign-invested enterprises encouraged and restricted on B class, foreign-invested research and development centers, advanced technology and export-oriented enterprise shall be exempted from tariffs and import tax. ("The Notice on Further Encouraging Foreign Investment from Ministry of Foreign Trade and Other Departments and Transmitted by the State Council General Office" issued by the State Council General Office [1999] No. 73 1998.8.20)
3. for the productions in the "China's High-tech Commodity Exports Catalog" edited by the Science and Technology Ministry, Ministry of Foreign Trade, if the export tax rebate rate does not meet the tax rate, after being approved by the State Administration of Taxation, the enterprises can transact drawback after products exporting according to the existing export tax rate and the rebate refunds regulations.

VI. Preferential policies about tax reduction and exemption in domestic investment high-tech enterprises
1. The corporate income tax rate shall be reduced to 15% in the identified domestic investment high-tech enterprises in the high-tech zones. The new-established high-tech enterprises shall enjoy a exemption from income tax for two years since they put into production ("The Notice About Preferential Policies for the Cooperate Income Tax" from Ministry of Finance, General State Taxation Administration, Finance and Tax [1994] No. 001 1994.3.29)
2. In the domestic investment enterprises engaging in the encouraged industries in central and western areas, the cooperate income tax shall be reduced to 15% during 2001 to 2010.("the notice on preferential tax policies for developing the western region from General Administration of Customs of General State Taxation Administration of The Ministry of Finance" FT [2001] No. 202 2001.12.30)

VII. The policies about reductions or exemptions to technical service income tax
1. the Technical service income of research institutes and universities for the transfer of technological achievements, technical training, technical consulting, technical services as well as Technology Contract shall enjoy income tax exemptions temporarily.("The Notice About Preferential Policies for the Cooperate Income Tax" from Ministry of Finance, General State Taxation Administration, Finance and Tax [1994] No. 001 1994.3.29)
2. For the income from technology transfer in enterprises and institutions as well as that from the technical consultation, technical services and technical training related to the technology transfer during the transfer, if its net annual income is less than 300 thousand RMB, it shall enjoy a exemption from the income tax temporarily; if the income exceeds 300 thousand RMB, the enterprises or institutions should pay income tax for the share exceeding 300 thousand RMB according to the law.("The Notice About Preferential Policies for the Cooperate Income Tax" from Ministry of Finance, General State Taxation Administration, Finance and Tax [1994] No. 001 1994.3.29)

VIII. Policies about software and integrated circuits industries
("The Notice on the Tax Policies to Encourage the Development in Software Industry and IC Industry from General Administration of Customs of General State Taxation Administration of The Ministry of Finance" FT [2000] No. 25 September 22nd, 2000)
1. The general taxpayers of VAT who sell the computer software production developed and produced by them shall pay 17% of the statutory tax rate as the VAT by 2010, and shall have a drawback for the share over 3% of the VAT. The tax rebates, not as the taxable income, shall be used to research and develop software products and expanded reproduction by the enterprises.
If the general taxpayers of VAT sell the imported software after conversion and other localized transformations, the software can be regarded as being developed and produced by them and the sellers shall enjoy the drawback according to the preferential tax policies.
2. After being identified, the new-established software enterprises can enjoy an exemption form the corporate income tax in the first two profitable years, and a half rate of the corporate income tax from the third to the fifth profitable year.
3. If the key software enterprises in the state planning do not enjoy the exemption, their corporate income tax rate shall be reduced to 10%.
4. The actual amount of Staff salaries and training costs in software enterprises shall be deducted from the taxable income amount.
5. The general taxpayers of VAT who sell integrated circuits and products (Monocrystalline Silicon Wafer inclusive) produced by them shall pay 17% of the statutory tax rate as the VAT, and shall have a drawback for the share over 6% of the VAT. The tax rebates, not as the taxable income, shall be used to research the integrated circuit products and expanded reproduction by the enterprises. ("The Notice on the Policies to Encourage the Development in Software Industry and IC Industry from The State Council" issued by The State Council [2000] No. 18 2000.6.24)
6. The software enterprises enjoy the discretion to decide their total wage and salary levels in accordance with relevant state laws and regulations as well as its economic efficiency and social average wage.
7. The software enterprises in National Hi-tech zones can account software sales revenue t the rate of 30% on the Systems Integration Projects.
8. if the enterprises and institutions in state high-tech zones purchase software whose costs reach the standard of that of fixed assets or Constitute an intangible asset, the purchased software can be accounted as fixed assets or intangible assets, and its life depreciation or amortization duration may be shortened properly, with a minimum of 2 years.

IX. The supporting policies for the implementation of the "The Outline of National Medium and Long-term Plan for Science and Technology Development (2006-2020)"
In order to carry out "The Outline of National Medium and Long-term Plan for Science and Technology Development (2006-2020)" (issued by the State Council [2005] No. 44, hereinafter "The Plan Outline"), create an environment of encouraging independent innovation, encourage enterprises to become the main body of technological innovation, and make efforts to build an innovative country, the following supporting policies were introduced:
1. Science and technology investment
(1) To increase the science and technology investment significantly. To establish a diversified, multi-channel input system of science and technology, to improve the proportion of the research investment in gross domestic product (GDP) year by year, and to make the science and technology meet the requirements of being an innovative country.
(2) To ensure steady financial growth in science and technology investment. Government at all levels shall treat science and technology investment as the focus of the budget, and the allocation of excess income both in the budget plan and budget implementation shall embody the growth requirements of statutory. In 2006, the science and technology investment from Central Finance had a big growth. On this basis, the amplitude of science and technology investment is significantly higher than that of other regular revenue growth in the duration of the "Eleventh Five-Year".
(3) To ensure the smooth implementation of the major projects. The implementation of the major projects identified by the "The Outline of the Plan" shall follow the principle of "starting the projects only when they are mature" and experts shall conduct a further comprehensive in-depth technical and economic feasibility study about it. According to the national development needs and the maturity of the implementation conditions, after being approved by the State Council and accepting the special funds, the "Outline of the Plan" shall be carried out one by one in the form of specific programs.
(4) To optimize the structure of finance science and technology input. Finance science and technology input shall mainly support the basic research, social welfare research and the advanced technology research. To make Reasonable arrangements for the normal operation of scientific research institutions, government IT projects (fund) and the fund for the construction of scientific research conditions, to focus on the research capability building of the commonweal industry, and to establish stable support mechanisms for the research of the commonweal industry; to optimize the Science and technology planning system of the government, and definitude support direction, and focus on the resolve of important technology issues during the development of the country, industry and regional economic society.
(5) Financial funds shall play the guiding role to encourage enterprises' innovation. The government shall change input mechanism, integrate government funds, and strengthen the support to encourage enterprises' technological innovation as well as the digestion and absorption and re-innovation to the introduced advanced technology. The large-scale backbone enterprises should be guided and supported to develop the research of pre-competitive strategic technologies and important equipments, and to build an international advanced technical innovation platform; the construction of the Business-oriented technical innovation service system should be enhanced; the technological SMEs should be provided more Technology Innovation Fund to innovate.
(6) The management mechanism of the financial technology investment should be innovated. Coordinate and efficient management platform should be built in the layout of scientific research base, the development of qualified personnel, the instauration of the government's technology plans, and the construction of research facilities to optimize the allocation of resources and maximize effectiveness of the financial technology investment. The management of the research funds should be reformed and strengthened, and strict and canonical monitoring system should be made to restrict the whole course such as application, evaluation, project, implementation and results of the research projects and the funds. The Performance Evaluation System of the financial technology funds should be made to define the performance goals of the government technology plans and the application-oriented projects. The results-oriented mechanism of tracking for the effectiveness should be established.

2. Tax incentives
(7) The deductions of pre-tax income from the enterprises' independent innovation shall be enhanced. Enterprises shall be permitted to pay 150% of the actual costs for developing technologies to offset the Tax liability at the current year. If the actual cost for developing technologies is insufficient at the current year, the lack might be carried forward within 5 years according to the tax law. The cost spending in staff training can be deducted in the enterprises' pre-tax income when the amount of the cost lies within 2.5% of the total amount of the taxable wage. The tax policies which can encourage the combination of industry, study as well as research should be developed.
(8) Enterprises shall be permitted to speed the depreciation of the research and developing instruments and equipments. For the research and developing instruments and equipments in enterprises, if the unit price is less than 300 thousand RMB, it can be apportioned into the management fee at one time or several times, but it should be managed separately without Extraction of depreciation if meting the standard of fixed assets; If the unit price exceeds 300 thousand RMB, it is feasible to shorten the depreciation age limit of fixed assets or speed the depreciation.
(9) The tax policies of encouraging the development of hi-tech enterprises shall be improved. The reformation of VAT for the hi-tech enterprises should be accelerated. For the identified new-established hi-tech enterprises in the national hi-tech zones the corporate income tax shall be exempted from corporate income tax in the first two profitable years, and the corporate income tax shall be reduced to 15% after that. The tax policies encouraging the export of the hi-tech production shall be improved continuously. The policies about the deduction on the pre-tax amount of the taxable wages in hi-tech enterprises shall be improved.
(10) Enterprises shall be supported to strengthen the independent innovation capacity-building. The enterprises technology centers meeting the stipulated requirements, the National Engineering (Research) centers, scientific research and technological equipments within the scope of import requirements, shall be exempted from the import tariffs and import VAT; Enterprises undertaking major national scientific and technological projects, key projects of the National Science and Technology Program, the major technology equipments research projects and major projects of importing technology and realizing digestion, absorption and re-innovation of it shall be exempted from the import tariffs and import VAT when importing the key equipments, raw materials and spare parts that can not be produced in our country.
(11) The tax policies for promoting the development of the development of the restructured scientific research institutions shall be improved. After the expiration of the exemption from corporate income tax, own land-use tax for research and development, urban land use tax of the house property, house property tax, the restructured scientific research institutions commercialized wholly or partially shall be improved according to the actual needs to enhance their capability of independent innovation.
(12) The venture investment enterprises shall be supported during their development. The venture investment enterprises mainly investing in small and medium high-tech enterprises shall enjoy the tax incentives policies such as the exemption from the investment income tax, or the offset between taxable income and the investment in proportion.
(13) Science and technology intermediary service agencies shall be supported. The eligible technology business incubators, National University Science Park shall be exempted from business tax, income tax, house property tax and urban land use tax from its identified date to the a certain date. Necessary supporting tax policies shall be made for the technology consultations and services from other eligible science and technology intermediary service agencies.
(14) Donating funds to innovative activities shall be encouraged. Enterprises, institutions, social groups and individuals can donate to Technology Innovation Fund for technology SMEs and other fund approved by the State Council to encourage independent innovation in enterprises through the public welfare social organizations and state institutions. The donation shall be defined as commonweal, and shall be deducted from the corporate income tax or personal income tax.

3. Financial support
(15) The policy-oriented financial supports for independent innovation shall be strengthened. Policy-oriented financial institutions shall mainly support and provide loan to the large-scale financing of the major national scientific and technological projects and major national technology Industrialization Projects, the projects about the transformation of the technological achievements, high-tech industrialization projects, the projects about the digestion and absorption of imported technology, and the projects of high-tech products export.
Within the soft loan scale approved by the State Council, The National Development Bank shall provide soft loan to high-tech enterprises to share investment in projects. China Export-Import Bank shall set a special financing account and provide financial support to the enterprises for the import and export of the core technologies and key equipments needed by high-tech enterprises within the policies scale. China Agricultural Development Bank shall provide special support policies to the transformation and industrialization of agricultural technology achievements.
(16) Commercial Finance shall be guided to support independent innovation. Government shall guide kinds of commercial finance institutions to support independent innovation and industrialization by means of funds, interest subsidies, guarantees, etc. Commercial banks shall provide credit support actively to the national and provincial high-tech projects in accordance with national investment policies and credit policies. Commercial banks shall support and give priority to the working capital loans needed by the profitable enterprises with repayment ability for the export of the independent innovated products according to the principles of credit. Commercial banks also shall give timely provision of various financial services to the good-credit independent innovation exporters within the certain line of credit according to the requirements of credit and settlement management.
(17) The financial services for the technological innovation in SMEs shall be improved. Commercial banks shall establish a stable relationship with technology-based SMEs and provide special support to the enterprises with strong innovative vitality. Enterprise and individual credit information system shall be constructed speedily and develop to provide support to the improvement of Commercial banks' financial service to technological innovation in SMEs.
The government shall guide and encourage social capital to establish credit guarantee agencies for SME, and set the mechanisms about capital supply and multi-level risk-sharing of the guarantee agencies. Various guarantee means shall be explored to make up the problem that SMEs have insufficient guaranty. Policy-oriented banks, commercial banks and other financial institutions shall set operational pilot pledges of intellectual property rights.
(18) Speeding up the development of entrepreneurial venture capital industry. Complementary rules and regulations to the "Interim regulations on Venture Capital Enterprises Management" shall be established to improve the legal protection system for venture investment. Records management for the venture investment enterprises shall be set up according to the law to promote the healthy development of the venture investment enterprises. Government should encourage relevant departments and local governments to set up the venture investment guiding fund to guide the social capital flowing to the venture investment enterprises and to guide the venture investment enterprises to invest in the venture enterprises at the start-seed or start-ups stage. Under the premises of the laws, regulations and relevant regulatory requirements, insurance companies should be supported to invest in venture investment enterprises. Stockjobber may develop venture investment business in accordance with laws, regulations and relevant regulatory requirements. Venture investment enterprises may enhance the investment capacity within the limits of laws and regulations by the means of debt financing.
It is necessary to improve the foreign exchange management system for Venture Investment, to regulate the foreign exchange management in corporative venture investment enterprises, and prescript the relevant problems about foreign exchange management in non-corporative foreign-invested venture investment enterprises.
(19) Building multi-level capital markets for supporting independent innovation. Conditioned high-tech enterprises shall be supported to come into the market of the domestic board or the SME board. It is necessary to promote the system innovation of SME board, shorten the counseling term for public offering, and simplify approval procedures to speed up the process of entering the market for technology-based SMEs. Entrepreneurship board shall be created at the proper time.
Relevant departments shall promote the shares transfer of high-tech enterprises. The pilot shall be started up for the unlisted high-tech enterprises in the Zhongguancun Science Park entering stockjobbers' agent system to transfer shares. According to the summary of the pilot experience, Eligible unlisted high-tech enterprises in National Hi-Tech Industrial Development Zones shall be permitted gradually to enter the agent system to transfer shares. In regions where conditions permit, local governments should support and develop the regional trading market of property rights to expand business channels for venture capital exit by the means of financial support, etc. Eligible high-tech enterprises shall be supported to issue debenture.
(20) Insurance services for high-tech enterprises should be supported. Insurance company should be supported to develop enterprises property insurance, product liability insurance, export credit insurance, business interruption insurance, etc, to provide insurance services to high-tech enterprises.
(21) Foreign exchange management policy shall be improved in Hi-tech enterprises. According to the actual needs of the hi-tech enterprises, the State Administration of Foreign Exchange would fully satisfy their requirements for foreign exchange in goods trade and service trade. Relevant departments should deepen the reform in foreign exchange management of overseas investment and support domestic enterprises to set up overseas research and design agencies and purchase and merge foreign R&D institutions and hi-tech enterprises.

4. Government procurement
(22) The system should be established that the financial funds shall be used to purchase independent innovative products. The attestation system for independent innovation, identifying and evaluation shall be established. The technology department and comprehensive economic departments shall identify the independent innovative products according to the open and fair process, and notice the society. Ministry of Finance and relevant departments shall give a list of the independent innovative products (hereinafter referred to as "List") within the government procurement from the identified independent innovative products and take dynamic management.
Government shall strengthen budgetary control, and give priority to independent innovation project. Governments, institutions and organizations at all levels (hereinafter collectively referred to as the purchasers) shall give priority to the listed products when purchase with the financial capital. Purchasers shall mark the independent innovative products when make the annual departmental budgets. If the expenditure items have been determined, the financial sector shall give priority to the budget for purchasing the independent innovative products during the budget approval process. Financial, auditing and supervising departments shall fully play the supervisory role to supervise purchasers to buy the independent innovative products consciously.
For the Major national construction projects as well as other projects which purchasing major equipments or products with financial funds, relevant departments should set their acceptance of purchasing independent innovative products as a condition of applying for projects and make specific requirements of the stock. In general, in the key projects invested by national or local government, the proportion of domestic equipment purchases shall not be less than 60% of the total value. Financial sector should not defray funds if the enterprises fail to purchase the independent innovative products according to the requirements.
(23) The assessment method of government stock shall be improved and the independent innovative products shall be given preferential treatment. The factors of independent innovation shall be considered in the assessment method of government stock. The evaluation of the Price-based tender shall give priority to the independent innovative products if the purchase requirements can be satisfied. If the price of the independent innovative products is higher than that of general products, it should be deducted properly according to the technology content and market competition. If the independent innovative products offer is not higher than a certain rate of that from the first sort of general products enterprises, the independent innovative products shall gain the priority to have the procurement contracts. The projects based on the comprehensive evaluation of the tender, should be added the factor of independent innovation with a proper portion.
For the procurement of the identified service projects with high innovative technology content and difficult-identified technical specifications and price, after being agreed by the financial sector, the contract shall be awarded to the enterprises with independent innovation capability by the means of competitive negotiation on the stock.
The management of government procurement contract about the independent innovative products shall be improved. If some enterprises refused to accept or provide the independent innovative products regulated by the contract, financial sector should order them to correct, or they can not gain the purchasing fund.
(24) The system about first purchase and order by government shall be established to inspire independent innovation. If the trial production and the first to market products are produced or developed by domestic enterprises or research institutions, meet the requirements of national economic development and advanced technology development, have great market potential and need supporting especially, after identification, government shall first purchase them by the means of purchasers buying directly or Government-funded purchase. For the major innovative products or technologies needing research and development, government shall determine the R&D institution from the whole society by the means of public procurement tender, sign the order contract, and establish relevant examination and testing mechanisms and R&D results popularizing mechanisms.
(25) The systems about identifying domestic goods and auditing the purchase of foreign products shall be established. The buyers shall give priority to domestic products according to "Government Procurement Law of The People's Republic of China". Ministry of Finance and other relevant departments shall stipulate the standards about identifying domestic goods. If the needed products are not available in China or by reasonable commercial terms (except for being used outside of China), national authoritative authentication agencies shall give the identification before the procurement. When purchasing foreign products, the buyers shall adhere to the principles of helping enterprises to innovate independently or digest and absorb core technologies and give priority to the products whose manufacturers transfer technologies to us.
(26) Defense procurements shall support independent innovation. Defense procurements shall be based on domestic independent innovation products and technologies. The independent innovative products and technologies should be given priority in defense procurement if meeting the requirements of national defense or national security. As to the purchase items related to national security, government shall give priority to the domestic independent innovative products, and the enterprises or research institutions with independent innovative capability should be given priority to be awarded the procurement contract.

5. To introduce, digest, absorb, and re-innovate
(27) To strengthen the management about the digestion, absorption and re-innovation of the imported technologies. For the major technological equipments approved by the state relevant departments and local governments or do needed introducing in the key projects invested by government, the projects owners jointed with the manufacturing enterprises should program a scheme about their introduction, digestion, absorption and re-innovation as the important content of the projects approval and sanction, and report to the national relevant charging department. The scheme can be carried out after the approval.
The consultation and evaluation to the technologies introduction shall be strengthened. The scheme about the introduction, digestion, absorption and re-introduction of the major technologies and equipments shall be consulted and demonstrated by the Expert Committee jointly organized by relevant departments to clarify the plans, objectives and progress of the digestion, absorption and re-innovation. If the enterprises gain an independent innovative capability through digestion and absorption shall be an important content in the examination and evaluation of the imported projects.
(28) To encourage enterprises to introduce foreign advanced technologies and adjust the list of encouraged introduced technologies periodically.
For the major equipments that can not be provided from domestic market and are needed by many enterprises, government encourage enterprises to invite public bidding unitively and guide foreign companies bid joint with domestic enterprises; The domestic enterprises should import advanced design and manufacturing technologies when importing equipments, and engage in subcontracting as much as possible and manufacture products in local.
(29) The blindly, repeatedly indraught shall be limited. The list of imported-ban technologies should be adjusted periodically. The import of the key technologies that our country has owned the capabilities to research and develop should be limited; the import of the high-consumption, high pollution, eliminated and behindhand equipments and technologies shall be forbidden or limited.
(30) The digestion and absorption re-innovation of enterprises shall be provided supporting policies. The advanced equipments and products invented after digestion, absorption and re-innovation shall be listed in the category of preferential procurement. State should arrange the national key projects that order or use the first set homemade major equipments. Among projects owners, equipment manufacturers and insurance companies, the risk-sharing, benefit-sharing insurance mechanism for major equipment shall be established to guide the projects owners, equipment manufacturers insure in the first set homemade major equipments.
(31) The digestion, absorption and re-innovation activities shall be supported that developed by manufacturers, colleges as well as institutions. When introducing major equipments, the user institutions should draw the manufacturers, colleges and research institutes to follow the international advanced technologies and develop independent innovative activities jointly after digestion and absorption. In the construction of national IT infrastructure, the technology platforms in important industries built by manufacturers, colleges and research institutes should gain preferential support to undertake the tasks of digestion, absorption and re-innovation of the major imported technologies.
(32) The equipment technology policies about promoting self-manufacturing should be carried out. For the national economic, social key development fields and key projects social, led by the comprehensive economic agencies, the user departments and the manufacturing departments should participate together in programming the national equipment technology policies to promote the independent manufacture of major equipments. The adoption of the major equipments and technologies in the national and local key construction projects shall be consistent with the equipment technology policies.

6. To create and protect intellectual property rights
(33) The independent intellectual property rights of key technologies and key products. According to industry and area features, national technology departments, comprehensive economic departments and other relevant departments shall workout jointly and release regularly the directories about the key technologies and important products whose independent intellectual property rights should be held. National technology programs and construction investments shall provide special support to the researching and manufacturing of the listed technologies and products. Provide support to the enterprises developing the listed technologies or products in the aspects of patent application, standard-setting, international trade and cooperation to shape a group of preponderant enterprises owning independent intellectual property rights, well-known brands and strong international competitive ability.
National Technology department and Intellectual Property Management department should establish a service platform for Intellectual Property right information and support information processing and strategic analysis for the intellectual property rights to provide the service about intellectual Property right information for the creation and market exploration of the independent intellectual property rights.
(34) Enterprises should participate in drawing international standards actively to promote the formation of the technologies standards mainly based on ours. National technology plans shall support the research of the important technology standards, guide manufacturers, colleges and institutions to combine to research the technology standards to promote the combination between standards and research, development, design and manufacture. Government departments should strengthen the guidance to guilds on the establishment of the important technology standards, support enterprises and communities to develop independently or participate in developing international technology standards, so as to encourage and push our technology standards to be the international standards. The country should establish the service platform about standards to support and speed the transformation from foreign advanced standards to domestic standards, and especially support enterprises to promote the formation of we-centered standards through re-innovation.
(35) To protect intellectual property rights effectively. A sound IPR protection system should be established to ensure the enforcement of the IPRs protection and create a nomocracy environment of respecting and protecting IPRs. R&D institutions, colleges and relevant government departments shall enhance the IPRs protection and management. After being approved, national technology plans and the wide range of innovation funds shall provide appropriate subsidies to the supported projects for the relevant cost used for obtaining intellectual property rights abroad. Technological personnel's intellectual property rights and interests should be ensured effectively. The institutions completing the duty technological achievements shall pay money to the finishers and people who have outstanding contribution to the conversion of the technological achievements according to law. The legitimate rights and interests of the finisher of non-duty invention achievements shall be protected according to law.
The special censorship mechanism for the IPRs of important economic activities should be established. Relevant departments should organize a special committee to monitor and investigate the activities about mergers and acquisitions and technology exports of the enterprises that involve national interests and own important independent IPR, so as to avoid the loss of independent IPRs and harm to national security. At the meanwhile, we should also prevent restricting innovation by the abuse of IPRs.
(36) The censoring cycle to invention patent should be shortened. Government should reform the invention patent censoring means to improve the efficiency of patent examination and shorten the censoring cycle. the patent system should play the active role to the independent innovative achievements that have important impacts on national technology, economic and social development or have the international competitiveness to safeguard national interests according to law.
(37) The building of technical trade measures system should be enhanced. The technical trade measures system complying with international rules should be established as soon as possible in our country. Relevant government departments shall establish and improve the notification and coordination mechanism, rapid response mechanisms and research evaluation system about technical trade measures. Government departments, guilds, local and enterprises shall combine to establish a early-warning mechanism about foreign technical trade measures system, including technology-warning, closely follow the changes of technology regulations, standards, eligibility assessment procedures and inspection and quarantine requirements in the target countries of our exported products, and carry out real-time monitoring and release early warning about the potential technical trade measures in export.

7. Personnel
(38) To speed up the training of a group of high-level innovative talents. To carry out the national projects of training high-level innovative talents, strive to cultivate a large number of high-level academic leaders with strong innovation capability in basic research, high-tech research, social welfare research and other strategic technology fields related to national competitiveness and security, and build outstanding innovative talented groups and innovative teams with Chinese-characteristics. To break the phenomenon of arranging in order of seniority, improve the system of academic exchange, and improve the mechanism of peer recognition so that outstanding young talents can come to the fore.
(39) To enhance the cultivation of innovative talents combining with the implementation of major projects. To make the personnel training plans, implement the national major projects and major technology plan and attach importance to relevant work of innovative talents cultivation. The cultivation of innovative talents should be looked as an important factor in the review, inspection of the national technology planed projects and the State Key Laboratories as well as in the comprehensive performance evaluation of the scientific research bases.
(40) Enterprises should be supported to cultivate and attract innovative personnel. To reform and improve the allocation mechanism incentives and mechanism in enterprises, support enterprises to attract technology professionals, and to permit state-owned high-tech enterprises to give options, etc. incentive policies to technical backbone and the backbone of management, Government should establish visiting researcher positions innovative personnel-oriented in the colleges and R&D institutions and hire senior business experts as part-time professors or researchers. To develop and standardize measures about the technology professionals part-time job, and guide and standardize the technology professionals in colleges and R&D institutions to have part-time job in enterprises. Government should support enterprises to establish internships bases and training bases for colleges and vocational college students. Post-doctoral research work in enterprises should be promoted to attract outstanding doctors to enter enterprises and engage in technological innovation. It should free from the household registration restrictions that enterprises recruit higher education graduates and attract talented people. Corresponding policies should be formulated to support the cultivation and use of the innovative talents in military industry and other special posts.
Government should clarify the state-owned enterprises principals' responsibilities to the independent innovation of the enterprises. Technological innovation input and innovation capacity-building in the enterprises should be an important factor in the performance evaluation of state-owned enterprises principals.
(41) Relevant departments shall support the cultivation of rural practical talents and provide policies support to the technological innovation services developed by technical personnel for the rural and poor areas. Radio, television, Internet and other distance education resources should be fully used to improve the farmers' vocational skills in adopting practical, advanced agricultural technology.
(42) To bring in overseas talent actively. Governments should develop and implement plans to attract the best students abroad and overseas technological talents to return (come to China) and service China, and attract overseas outstanding talents by the means of team introduction, core talents driven, etc., according to the national independent innovation strategy, major scientific and technological projects and key innovative projects. High-level overseas students returning should free from the preparation, human indicators, total wages in the employing unit, as well as the restrictions of household registration before leaving the country. The restrictions on the permission of applying for working and permanent residence in China for outstanding technology personnel may be relaxed appropriately, and the outstanding technology personnel may apply for multiple valid visas for entering China within the validity period of their residence certificates. The measures should be made to ensure the legitimate rights and interests of the foreign high-level personnel with permanent residence. Government should provide a sound arrangement on the medical insurance, spouse employment, schooling for children and other issues to the outstanding overseas talents returning (coming to China).
(43) The personnel system of scientific research institutions should be reformed and improved. Government should reform the system of professional technology personnel management and promote the reform of the professional and technical positions system by classification. Relevant departments should deepen the personnel system reform scientific in research institutions, and fully implement the appointment system and positions management system. Scientific in research institutions may set up their own innovation positions at all levels, and employ relevant personnel according to their needs.
The systems should be carried out under which fixed posts and mobile positions are combined, personnel use and projects and tasks are combined. Government should implement the system under which enterprises may have open recruitments to hire principals of the key positions and research projects from both home and abroad publicly excepting for the classified positions. Personnel agency system should be implemented for the new entrants in scientific research institutions. Government should encourage scientific research institutions and their staffs to participate in social insurance, promote the reform of old-age pension insurance system in institutions, and improve the approaches of taking over procedures of social insurance for the technology personnel flowing to enterprises. According to the needs of the wage reform in institutions, government should reform and regulate the wage distribution system in scientific research institutions, establish the income distribution system based on post pay and performance pay, and forbid violation to regulations and the distribution from the state research projects fund.
(44) The talent evaluation and reward system conducive to the encouragement of independent innovation should be established. Relevant departments should establish diversified appraisal system complying with the law of scientific and technological personnel, give a category management to the personnel of scientific research, research management, technical support, and administration, set up evaluation systems for different fields and personnel of different types, and clarify the indicators and factors in of the evaluations.
Government should reform and improve the national science and technology award system, set up a science and technology award system to encourage independent innovation under which government awards serve as orientation, social awards and employers awards serve as principal body, and make finding, cultivating, and attracting technological talents, especially top-notch talents a important factor of the national science and technology awards. Relevant departments should establish and improve the scientific credit system, and carry out credit supervision to the personnel and institutions engaging in national science and technology projects and relevant management to strengthen ethics and promote study style.

8. Education and popular science
(45) Colleges should give full play in independent innovation. Relevant departments should deepen the reform of higher education, adjust the structure of higher education and strengthen construction of key disciplines. Education institutions should adapt the needs of various types of specialized personnel in economic and social development actively, optimize the arrangement of academic, promote interdisciplinary integration and pace the training of badly-needed professionals. To promote the construction of high-level universities solidly, improve the innovative capability and social service capability of colleges and universities, and built a number of world-class universities and high-level research universities. Colleges should innovate post-graduate training mechanism to strive to cultivate the innovative spirit and practical ability. To insist on combining manufacturers, colleges and research institutions to encourage and support colleges to establish a closely multi-channel and multi-style partnership with enterprises as well as research institutions, cultivate innovative talents and organize innovation activities jointly. Relevant should enlarge the scale of sending graduate students abroad, improve the selected approaches, and develop international cooperation in the cultivation of technology and high-level personnel at a higher level.
(46) To develop and reform of vocational education. To speed up the cultivation of badly-needed skilled professionals and the training of transferred rural labor force. Relevant departments should strengthen the basic capacity-building of vocational education effectively, and enlarge the scale of secondary vocational education, improve the quality of higher vocational schools, push the personnel training mode of working and learning combination, school-enterprise cooperation.
(47) To promote quality education comprehensively. Relevant departments should push the basic education curriculum reform and teaching reform, enhance and improve moral education, intellectual education, physical education and aesthetic education, so that callans could develop in initiative and lively manner, and advocate heuristic teaching, focus on the cultivation of hands-on ability to develop the habits of thinking independently, pursuing new knowledge, daring to innovate and practice from childhood, and strengthen science and technology education effectively. Modern means of distance education should be given extensive use to advocate new approaches to learning and teaching. School should give positive development and rational use to the various courses resources both internal and external courses Libraries, make full use of laboratories, special classrooms and all kinds of teaching facilities and practice bases, use the exhibition hall, science museums and other abundant resources outside school extensively, Strengthen the construction of science and technology activities venues for primary and secondary school students to broaden the knowledge and train practical abilities of the primary and secondary school students.
(48) Science popularization cause should be promoted vigorously. The universal scientific literacy action plan should be implemented to form the strong social atmosphere of respecting science and advocating innovation. The national capacity-building on Science popularization should be strengthened. Sound operational mechanism of Science popularization should be established. The system about research institutes and universities open to the public regularly should be set up. Well-known scientists and other experts and scholars would be encouraged to involve in science writing. The building of science popularizing venues should be strengthened.

9. Technological innovation bases and platforms
(49) The construction of the experimental base, infrastructure and conditions platform should be strengthened. Around the major strategic needs in economic and social development and national security, a number of national laboratories with characters of interdisciplinary, Comprehensive integration, Mechanism innovative should be built in the strategic blank fields of new cross-frontier fields. Relying on National laboratories, State Key Laboratory, National Engineering Laboratory, National Defense Science and Technology Laboratory, National Engineering (Research) centers, enterprise technology centers or research and development center, major independent innovation projects should be implemented to attract and gather high-level personnel to promote the sound combination of projects, bases and talents.
A number of key research infrastructures and large scientific instruments, equipment-sharing platforms, natural science and technology resources sharing platforms, the scientific data sharing platforms, technology literature sharing platforms, the public service platforms for achievements transformation, network technology environment platforms should be built to strengthen the support to independent innovation comprehensively.
(50) To strengthen the stable support to the public good research institutions. The manage system and operational mechanism reform of public good research institutions should be promoted and improved. For the public good research institutions that have been classified and subordinate to State Council, after being checked and accepted, they should Increase the input since 2006 greatly to achieve the corresponding level compatible to the national research and public service it undertook.
(51) To strengthen the construction of independent innovation bases of enterprises and restructured enterprise-oriented research institutions. State support enterprises, especially large enterprises to set up R&D institutions. To rely on the restructured R&D institutions or large enterprises with strong researching and developing capability and Technology radiation capability, gather the related forces such as colleges, research institutions, etc. to build a number of national engineering laboratories in key fields, so as to develop the research about vocation-facing pre-competitive technologies, cutting-edge technologies and Dual-use technologies in military and auxiliaries.
The performance evaluation for restructured R&D institutions should be improved, and the performance evaluation factors systems which can push their technology innovation would be established. The influencing factors of non-operating assets should be excluded from the operation performance evaluation factors (the inflation-proof rate and value-rising rate of state capital, net capital gains rate).
(52) To strengthen development of national high-tech industrial development zones. National Hi-Tech Industrial Development Zone shall promote the "second pioneering", deepen the reform of management system, strengthen the building of the soft environment, and strive to become the focal carriers in pushing technology progress and strengthening the independent innovative capability, become the strong engine in the adjustment of regional economic structure and in the mode transformation of economic growth, become the service platform in high-tech enterprises "going Global" and participating in international competition, and become the foreland in seizing the commanding heights of the world's high-tech industry.
(53) The technology innovation bases and service platforms should be opened and shared, which should be promoted. The openness degrees of the technology innovation bases and service platforms to the whole society should be enlarged. The systems should be set up and improved that national research bases and the basic establishment of research open to and be shared by enterprises and society. Providing service to enterprises and society should be an important factor in the operation performance evaluation.

10. To strengthen co-ordination
(54) The co-ordination mechanism for the rational allocation on technological resources should be established and improved. The coordination mechanisms on technological resources allocation between financial sectors, technology sectors and other sectors should be improved. Statistical methods should be improved to improve research and statistical data quality. The implementation and supervision of technology budget should be strengthened to ensure the realization of the financial investment in technology. Information exchange system about innovative resource allocation should be established to prevent the duplication of project and resource dispersion and waste.
(55) Coordination mechanisms about government purchasing independent innovation products should be established. Led by financial sector, the coordination committee composed by technology sector, development and reform sector and other relevant sectors should frame the specific measure about government purchasing independent innovation products, review the implementation, and coordinate and resolve the difficulties and problems encountered in its implementation.
(56) To establish a coordination mechanisms about the digestion, absorption and re-innovation of the imported technologies. Led by the national comprehensive economic sector, the coordination committee composed by technology sector, education sector, financial sector, commercial sector, taxation sector, customs sector, quality inspection sector, IPR sector and other relevant sectors should frame the policies about the import of the major industry technologies and equipments, and organize, coordinate and monitor the digestion, absorption and re-innovation of the major imported technologies.
(57) To promote "civil-military integration, integrating the armed forces into civilian". The Joint conference system for promoting the coordinative allocation of the Military and civilian technological resources should be established. The convergence and coordination of the Military and civilian technology plan should be strengthened. The military and civilian information-sharing platform for independent innovation should be set up to promote the exchanges of the needs in military and civilian technology research and development and the two-way communication of the innovative achievements.
To draft out, frame the procurement laws, regulation and relevant rules about promoting the national defense technology manufacture and weapons and equipment of "civil-military integration, integrating the armed forces". To regulate the eligibility certification scheme to the institutions researching or making Military supplies, introduce the Military market access system basing on the qualification censorship, expand the scope of military access, and list the eligible civilian research institutions and enterprises on the catalog of the institutions researching or making Military supplies.
In the premise of meeting the military requirements, relevant departments should adopt advanced and applicable civil standard for weapons and equipment research and development actively, establish the Coordinated and complementary standards system of national standards, military standards, and industry standards, and provide necessary policies supports to the  civilian institutions and enterprises undertaking the tasks of researching and producing weaponry equipments.
(58) To carry out the propaganda work about the implementation the "the outline of the plan", and building an innovative country earnestly.
(59) Relevant departments of the State Council shall develop necessary detailed regulations according to the documentations.
(60) Provinces, autonomous regions and municipalities shall regulate corresponding specific policies and regulations within the statutory authority according to local facts.