Preferential Policies and Investment Guidance
A. Preferential Policies
The portion of the Kangqiao Industrial Zone, which lies north of Pudong section of the urban Outer Ring Road, is within the planned property line of Pudong New Area. Both the Chinese and foreign invested projects in the zone can enjoy the preferential policies of Pudong New Area. The main points are:
1. The income tax rate Chinese and foreign invested enterprises in the zone is 15%. The local surtax is exempt.
2. The production elated enterprises with foreign investment can enjoy two years of the inocme tax entemption and three years of 50% reduction.
3. The Chinese invested enterprises can enjoy one year of the income tax exemption and two years of 50% reduction.
4. After the expiry of the reduction and examption period, the income tax on the foreign invested enterprise, whose product export is over 70% or who are classified as technologically advanced enterprises, shall be levied at a rate of 10%.
5. Fixed asset investment projects set up in the zone can enjoy a postponement in paying the investment orientation adjustment tax.
6. Equipment for self-use imported in conformity with Encouraged Category and Restricted Category B of "Industrial Catalog Guiding Foreign Investment" shall be exempt from tariff and import-related value-added tax.
7. Equipment for self-use imported for domestic invested projects which is in conformity with "the Category of Indusries, Products and Technology Currently Encouraged by the State for Development" shall be exampt from tariff and import-related value-added tax.
8. Foreign investors can enjoy the exemption from income tax on the amount of profits remitted abroad and the real estate tax, and can enjoy the preferential treatments such as being refunded the income tax when reinvesting.
9. Customers from other cities and provinces or from other districts and counties of Shanghai who invest in Kangqiao Industrial Zone can also enjoy the preferential policies provided by Nanhui County.

B. Guidance for Investment
With investment emphass on science and technology industries with high technology contents, Kangqiao Industrial Zone takes Shanghai's 6 pillar industries (auto, electronics, electrical appliances and new building materials, etc.) as its development priorities. Except the prohibited industrials and Category A of Restricted Industries for foreign investment, Kangqiao Industrial Zone is also been to introduce other projects involving machinery, food, clothing and medical and health care products.