1. According to relevant regulations, foreign businesses investing in transportation facilities and urban public utilities may operate related service businesses and utilize BOT, TOT and other forms. They may also enjoy tax-exemption and reduction policies granted by the state. Investors involved in the construction of highways and bridges, whose charges meet government stipulations, may make suggestions on toll fees on the basis of a rational investment recuperation period. The plan will be put into effect upon examination and approval by related departments within the sphere of responsibility for price management. The toll fees may be regulated in line with price fluctuations, upon the approval of the original related departments.
2. Infrastructure projects with investments exceeding USD 30 million each and an investment recouping period of more than 10 years will have their income tax refunded by financial authorities in a set period after the term of tax exemption and reduction granted by the state expires. Businesses that make investment in transportation facilities will, upon approval, have their turnover tax refunded by financial authorities within the investment recouping period for vehicle passage fees and other incomes. Foreign-funded infrastructure construction projects are exempt from local income tax.
3. Foreign-funded enterprises approved to participate in the renovation of old urban areas with a concentration on poor houses and the development and construction of affordable new housing for low and medium income families will enjoy the same treatment as domestic enterprises. Land for the construction of affordable housing approved by the government may be supplied through the form of administrative allocation. Relevant fees will be exempted or reduced accordingly. Businesses involved in the construction of such projects will enjoy a 50-percent reduction of fees paid for urban auxiliary infrastructure facilities. In each living quarter dedicated to affordable housing, 20-30 percent of commodity houses may be built, in order to increase the foreign investment-recouping rate.

1. Foreign investment in agriculture, with an operational period of over 10 years, will be exempted from the local income tax for the first five years, and 50% of the same will be deducted from the sixth to the tenth year. The local income tax will be exempted in the first ten years for the foreign investment in low-yielding farmland improvement, and in addition to the preferential treatment in taxation granted by the central government, the tax exceeding 15% of the enterprise income tax will be refunded in the following five years under the approval of the related finance administration. The income tax paid by foreign investors investing in a new project (with an operation period over five years) with the profit from the existing business, will be refunded in full.
2. Taxes paid by foreign investment in relation to barren land and water resources will be refunded in full, with approval from municipal or district government, and 50% of the same will be deducted for the following five years. The VAT of sales of their own agricultural products will be exempted from foreign investment in agriculture.
3. Priority will be placed on agriculture in land allocation. 50% of the land-use fee will be exempted for the investment using large areas of non-farm land for exploitation of agricultural cultivation, and a certain amount of the same will be deducted from the sixth year. The land-use fee will be exempted in full for ten years for foreign investment in improvement of low-yield farmland. Land lease deposits of reserved land for projects using investment of over USD 10 million will be exempted under approval of local finance and land administrations. The land can be paid for in instalments. Permission to withhold payment for 30 years for land shall be granted to investors who are engaged in beach land projects.

1. Rebates shall be given for export of hi-tech products at the value of the VAT rate. Research centers of manufacturers and trading companies approved to export hi-tech products shall enjoy preferential treatment. From 2000, the additional VAT exceeding the amount of the previous year, reserved by local government for exported hi-tech and hi-added-value products, shall be refunded in full for three years.
2. Exemption from import taxes will be granted in accordance with the regulations of the state for import of equipment for self use, related technologies, components and parts by foreign-funded enterprises (of which business is encouraged or classified as Type B, or involves advanced technologies or export orientation) or research institutes, in condition that the said required commodities approved for production are not produced in China or the Chinese products are unsatisfactory.
3. Business tax and enterprise income tax shall be exempt for foreign-funded enterprises under approval from the state taxation authority if the enterprise transfer is advanced or is involved with preferential technologies. Foreign-funded enterprises shall be exempt from business tax for the income of technical transfer. Current income tax of the foreign-funded enterprises, of which the technical development expenses increase at over 10% over that of the previous year, shall be reduced at the rate of 50% of the expenses for technical innovation, under the approval of local taxation authority.

1. Investors involved in production projects, who add investment and registered capital to their formerly invested enterprises upon the approval of taxation authorities, will enjoy exemption of enterprise income tax in the first two profit-making years. They will also have a 50-percent reduction in the ensuing three years for the profits gained in reinvestment (the part that can be separated for independent accounting) through the method of fiscal refunding.
2. Foreign investors who use the profits gained from existing enterprises to make reinvestment with the new project's term of operation being no less than five years, will enjoy the existing preferential policies. When the amount of newly added investment equals the profits obtained by an investor from the enterprise funded by him, the capital should be regarded as reinvestment, and the investor will have 40 percent of the paid income tax refunded by the financial authorities. The tax refund rate for export-oriented and technologically advanced enterprises using their profits to make reinvestment will have 30 percent of the paid income tax refunded.

1. The city will appropriately open the domestic market for products manufactured by foreign-funded enterprises. Newly established foreign-funded enterprises that fall into the category encouraged by the state, can, upon approval, independently set the ratio of products to be sold on the domestic market. Export-oriented, technologically advanced and high-tech production enterprises, upon approval, can readjust the ratio of domestically marketed products set in their original contracts and articles of association, on the condition that their registered capital is in place and that they have formed planned productive capacity.
2. Relevant service charges will be unified. Foreign business people will pay the same charges as Qingdao citizens for accommodation, meals, purchasing of houses, land and other commodities, tours and their children's tuition fees.

Application for the Establishment
· Application Form
· Signed Contract and Articles of Association
· Investment Verification Certificate of Investor/s
· Application for Establishment of Foreign-funded Enterprise
· Registration Acknowledgement Certificate
· Business Certificates of Investors (ID required for individual investor/s)
· Feasibility Study Report
· List and Personal Information of All Investors
· Certificate of the Land and Housing Property
· Others

1. New Technologies & Industries
   Information Technology
   (1)Digital Video Equipment
   (2)Mobile,Cellular Equipment
   (3)Networking Products
   (4)Computer Hardware and Software
   (5)LCD Panel Screens
   (6)Multi-layered Printing Equipment
   (7)Integrated Circuits
   Natural Medicinal Products
   (1)Oceanic Medicine
   (2)Natural Medicine
   (3)Marine Health Foods
   Environmental Protection
   (1)Prevention of Water Pollution
   (2)Prevention of Air Pollution
   (3)Waste Pollution
   (4)Resource Usage
   
2. Major Industries
   Electronic Appliances
   (1)Refrigerators
   (2)Washing Machines
   (3)Air Conditioners
   (4)Microwave Ovens
   (5)Water heaters
   (6)Cash Registers
   Chemical Products
   (1)Petrochemicals
   (2)Chemical Plants
   (3)Inorganic Chemical Products
   (4)Agrochemical Products
   (5)Tyres for Agricultural Use
   (6)Other Rubber Products
   Food and Beverages
   (1)Qingdao Beer
   (2)Mineral Water
   (3)Grape Wines
   (4)Cigarettes
   (5)Food Products
   Car and Ships
   (1)Delivery Trucks
   (2)Agricultural Transport
   (3)Passenger Car
   (4)Car Retrofitting
   (5)Subways
   (6)Car Spare Parts
   Electrical Products
   (1)Cables
   (2)Transformers
   (3)Generators
   (4)Printing, Packaging Equipment
   (5)Weaving Equipment
   (6)Casting and Forging
   
3. Traditional Industries
   Garments
   (1)Materials
   (2)Knitting
   (3)Silk Scarves, blankets
   (4)High Quality Clothing
   (5)Curtains
   (6)Polyester
   Metal Work
   (1)Metal Plating
   (2)Special Steel Types
   (3)Construction Materials
   (4)Glass
   (5)Granite
   Packaging & Printing
   (1)Printing Equipment
   (2)Packaging Equipment
   Leather Shoes
   (1)Top Quality Shoes
   (2)Leather Shoes By Products
   Furniture & Fitting
   (1)Home Furniture
   (2)Kitchen Appliances
   (3)Sanitary Ware
   (4)Decoration
   (5)Flooring