In order to increase support for foreign investors to establish R&D centers in Shanxi, and encourage and guide more foreign investment to flow into the field of scientific and technological innovation, the following measures are hereby put forward. 

I. Optimize scientific and technological innovation services

Optimize the qualification examination and approval procedures for foreign-funded R&D centers. For the recognized foreign-funded R&D centers, eligible scientific research and development supplies imported shall be exempted from import duties, value-added tax and consumption tax in accordance with relevant regulations, and the value-added tax paid on the procurement of domestic equipment shall be fully refunded. Support and guide more foreign-funded R&D centers to apply for the recognition as high-tech enterprises, and implement the award and subsidy policies for the recognition of high-tech enterprises.

II. Encourage the sharing of scientific and technological resources

Support foreign-funded R&D centers to use large-scale scientific research instruments in accordance with the law. The scientific and technological resources such as large-scale scientific research facilities and instruments of institutions of higher learning, scientific research institutes, enterprises, and R&D organizations in the province shall be open to foreign-funded R&D centers registered in Shanxi through the Shanxi Provincial Science and Technology Innovation Voucher, so as to achieve resource sharing and fully release the service potential.

III. Support the establishment of new-type R&D institutions

For the provincial-level new-type R&D institutions established by foreign entities that have been recognized and announced, according to the performance evaluation and the actual R&D expenditure, a subsidy of up to 5 million yuan shall be continuously provided according to the construction cycle. If other R&D expense subsidies at all levels of finance have been enjoyed, no repeated subsidy will be given. For the transfer and transformation of scientific and technological achievements in Shanxi, a post-subsidy of up to 10% of the technical transaction volume of the previous year shall be given, with a maximum of 1 million yuan.

IV. Promote the collaborative innovation of industry, university and research institute

For the transformation and industrialization of advanced technological achievements of foreign-funded R&D centers within the province, a subsidy of 5% of the actual payment amount of the technical contract shall be given, and the maximum subsidy for a single scientific and technological achievement is 1 million yuan. Support eligible foreign-funded R&D centers to apply for post-doctoral research workstations, and provide subsidies for the establishment of workstations. Provide special subsidies for post-doctoral researchers who enter the workstations.

V. Support the establishment of open innovation platforms

Support foreign-funded entities to establish R&D centers with open innovation platforms, which shall enjoy the same treatment as domestic units. Encourage them to integrate resources such as technologies, talents, funds, and industrial chains with domestic enterprises, universities, and scientific research institutes to achieve collaborative innovation. For the officially approved and operating national key laboratories, national key laboratories jointly established by provinces and ministries, “Belt and Road” joint laboratories, national technology innovation centers, and Shanxi Provincial laboratories, special funds shall be provided every year. For eligible provincial key laboratories, technology innovation centers, and pilot-scale test bases that are open for operation and have excellent performance evaluation, funds of no more than 2 million yuan shall be provided every year. Do a good job in the talent service for the R&D centers with open innovation platforms established by foreign entities, build cooperation bridges, and support the formation of scientific research and innovation teams.

VI. Strengthen financial support for scientific and technological innovation

The departments of commerce and foreign investment shall conduct in-depth research, take the initiative to understand the financing needs of foreign-funded R&D centers, share relevant information in accordance with the law, and promote “bank-enterprise docking” between financial institutions and foreign-funded R&D centers. Implement the provincial science and technology finance special project, guide financial institutions to innovate financial products, improve the service mode, and provide financing support and financial services for science and technology enterprises including foreign-funded R&D centers.

VII. Encourage participation in government projects

Support foreign-funded R&D centers to undertake national scientific and technological tasks, promptly forward and promote the application guidelines of various national science and technology plans issued by the Ministry of Science and Technology, and do a good job in service such as project organization and recommendation, and video defense and evaluation. Actively recruit eligible science and technology experts from foreign-funded R&D centers to enter the provincial science and technology expert database, and participate in the consultation, evaluation, and management of science and technology plan projects. For eligible science and technology experts from foreign-funded R&D centers who are included in the science and technology expert database at different levels, they shall enjoy the same treatment as other experts in the process of consultation and evaluation of science and technology plan projects.

VIII. Improve convenience for international talents

Process work permits valid for the duration of their employment contracts and issue residence permits for up to 5 years for the high-level talents of foreign-invested research and development (R&D) centers. Provide services through a “green channel” for licensing procedures, issuing certificates of recognition for high-level talents, and adopting flexible processing measures for foreign-funded R&D centers and hiring urgently-need overseas high-level talents. Facilitate the change of work permits for foreign senior managers appointed by the same multinational company headquarters when transferring across provinces.

IX Encourage the application for professional titles

Relevant judge committee can directly recognize the professional title for overseas high-level talents hired by foreign-funded R&D centers and those urgently-need talents based on their professional experience, academic level, technical capabilities, and contributions. Establish a special talent evaluation committee to promptly assess and recognize senior professional titles through case-by-case evaluations, and provide immediate recognition upon application submitted.

X. Strengthen rewards and grants for overseas talents

Support eligible overseas leading talents and their teams hired by foreign-funded R&D centers in applying for key R&D programs and securing project funding.

XI. Facilitate cross-border financial transactions for international talents

Financial institutions should provide convenient foreign exchange services to international talents according to regulations. Banks are encouraged to implement special business handling systems to properly address legitimate and lawful current account foreign exchange needs of international talents. Under the principle of “Knowing your customer, knowing your business and conducting thorough due diligence”, banks can handle cross-border RMB settlement services for personal salaries and other legally compliant income for international talents. Additionally, banks may open individual RMB bank settlement accounts for Hong Kong and Macau talents to receive funds transferred from their own accounts within an 80,000 RMB daily limit.

XII. Enhance collaborative protection services for intellectual property rights (IPR)

Provide fast-track patent pre-examination filing services for independently registered foreign-funded R&D centers within Shanxi Province. Offer rapid patent pre-examination services for applications that are in the service areas of the Shanxi IPR Protection Center. Conduct mediation of patent infringement disputes, IPR assistance, patent infringement advisory services, and overseas IPR protection as required. Deliver comprehensive services such as patent navigation and public service applications. Collaborate with public security, market supervision, copyright, customs, and other relevant departments to strengthen law enforcement cooperation and judicial connections for collaborative IPR protection.

XIII. Elevate IPR law enforcement standards

Enhance efforts in handling patent infringement disputes, encourage qualified cities to use provincial IPR circuit courts for case trials, and intensify crackdowns on trademark infringements, counterfeit patents, malicious trademark registrations, and improper geographical indications in the livelihood sector. Select exemplary cases for public release to deter illegal activities, regulate and purify market order, and effectively protect the legitimate rights and interests of foreign-invested enterprises and consumers. Promptly handle abnormal patent applications and malicious trademark registration cases.

The relevant provincial departments and units must ensure effective implementation of supportive policies for qualified foreign-funded R&D centers. Municipal departments should optimize management and services to implement these measures.

This document enters into effect on September 13, 2023, with a validity period of three years.

Shanxi Provincial Department of Commerce

Shanxi Provincial Department of Science and Technology

Shanxi Provincial Department of Human Resources and Social Security

Shanxi Provincial Market Regulation Administration

State Administration of Foreign Exchange, Shanxi Branch

September 12, 2023