Paper Industry Investment Opportunities and Policies

Recently, at the "Swiss China Pulp and Paper Technology Seminar", Ms. Cao Pufang, Executive Vice Chairman of the China Paper Association, gave a speech on investment opportunities and related policies of the Chinese paper industry. Its main content is as follows:
1. The key technological transformation projects included in the national financial bond support will enjoy the following policies:
a. Imported equipment is exempt from customs duties and import value-added tax;
B. The project special loan companies can enjoy the national financial discount policy;
c. 40% of the domestic equipment investment required for technological transformation can enjoy the preferential tax credit for corporate income tax;
d. Suspend the adjustment tax on the fixed asset investor.
2. The State Council has decided that starting from January 1, 1998, domestic investment projects that are encouraged by the state and foreign-invested foreign investment projects will be exempt from customs duties and import value-added tax within the prescribed scope. Exemption scope of imported equipment:
a. Foreign-invested projects that meet the "Foreign Investment Industry Guidance Catalogue" encouragement category and limit category B, and transfer technology, and self-use equipment imported within the total investment amount, except for those listed in the "Catalogue of Imported Commodities not Exempt from Taxes for Foreign Investment Projects" In addition, exemption from customs duties and value-added tax for imports, foreign government loans and self-use equipment imported from international financial organization loan projects, and processing equipment provided by non-priced imported equipment are mutatis mutandis.
b. For domestic investment projects that are in line with the “Current Catalogue of Industries, Products, and Technologies Encouraged by the State for Development”, except those for personal use within the total investment amount, and those listed in “Catalogue of Imported Goods that Domestic Investment Projects Are Not Exempt from Taxes”, exemption. Tariff and import link value added tax.
c. The technology, fittings and spare parts imported with the equipment according to the contract are also exempt from customs duties and import link value-added tax for items that meet the above requirements.
3. The General Administration of Customs issues the "Notice on Further Encouraging Foreign Investment in Import Taxation Policies", the established encouraged and restricted Class B foreign-invested enterprises, foreign-invested research and development centers, advanced technology-based and export-oriented foreign-invested enterprises. The technological transformation projects and the projects that meet the “Catalogue of Advantageous Industries and Advantageous Projects of Foreign Investment in the Midwest by Foreign Investors” shall, within the total investment amount, import domestically produced equipment that does not produce or whose performance cannot meet the needs, and its supporting technologies, spare parts, and spare parts, except Apart from imported goods that are not tax-free, they are exempted from import duties and import value-added tax.
4. For investing in foreign-funded enterprises in the central and western regions, the state will grant new preferential income tax policies. The State Council has decided to implement it on January 1, 2000: For foreign-invested enterprises in the central and western regions that are encouraged by the state, the income tax may be reduced at a rate of 15% within 3 years after the expiration of the current preferential tax policy.
5. Relevant preferential policies that can be enjoyed by "triple-funded" enterprises: such as the tax exemption of "tax-free 2", reinvestment tax refund (refund of 40% of the paid income tax), exemption from urban maintenance and construction tax, and exemption from fixed taxes. Asset investment direction adjustment tax and other policies.
6. Encourage foreign investment in papermaking: large pulp mills and construction of corresponding raw material bases; production of high-tech chemicals for papermaking; manufacture of complete sets of equipment for new types of pulping and papermaking machinery; technological projects for recycling and comprehensive utilization of papermaking industry resources; Pollution control projects; paper and cardboard projects.
Opening up to foreign countries is a basic state policy of China. After China's accession to the WTO, the degree of opening to the outside world will be even greater, and the area will be wider. China's paper market has a broad prospect and provides investors with room for full development.