(Adopted by the 51st ordinary meeting of the Government of the 14 October 2009 at the fourteenth meeting of the People's Government of the Sea, No. 76 of the Order of the People's Government of the Sea of 19 November 2009, issued as from 1 January 2010)

The municipalities have decided to amend the following provisions for the development of a number of new technology industries at sea level:

Paragraphs 1 and 4 are added to Article 6: “Space-technical enterprises are registered directly by the municipal and commercial administration and are registered by the scientific and technological enterprises in the tax area approved by the levies and the business administration sector.”

“In accordance with the conditions of registration, the business administration sector shall license a nuclear operation within five working days from the date of receipt of the application.”

Article 7: “Supports of science and technology personnel, national retention and small-scale science and technology enterprises established by university graduates are generally subject to conditions of business and may be licensed by the business sector”.

Article 7 reproduces Article 8 and amends to reads as follows: The STI business project is more than two industries and its registered capital should be adapted to the scale of operation. The laws, administrative regulations provide for the minimum number of registered capitals of the enterprise, from their provisions.”

Article 9: “A one-time injection of registered funds by small and medium-sized enterprises is difficult and can be injected in part. The first amount injection within one month of registration should not be less than 10 per cent of the total registered capital, but the amount injected in one year was less than 50 per cent of the total registered capital, and the last period should be injected within three years after registration. More than 1 million companies registered in capital are entitled to “Northern”.

V. Article 8 reproduces Article 10 and amends to reads as follows:

“Currents registered capital are financed by high new technology results or by technical and patent results, which should be assessed by the assessment body.”

Article 9 reproduces Article 11 and amends as follows: The city's financial sector, in accordance with its financial resources, arranges funds specifically for projects aimed at enabling identified high-technical enterprises. Priority is given to ownership of intellectual property and market competitiveness.”

“The municipal science and technology administration authorities submit a budget for special funding subsidies for high-level new technology enterprises in the previous year at the beginning of each year and are included in the annual budget after the approval of the municipal finance sector.”

Article 14. “Information of domestic markets and associated industrial development in the market, with greater market potential and high-technology products identified by the scientific and technological authorities, in one of the following cases, in which government agencies, business units and groups organize financial funds for the production of such products, they should be procured as a matter of priority under the same conditions: (i) technology or process routes are at the national pre-emptive level; (ii) reliable, core components and end-user product development; and (iii) the development of new types of technology inventories or technology.

Article 12 reproduces article 15 and amends paragraph 2 of the “Provisional Approach for Patent Funding Management in Sea City” as follows: “The Patent Fundraising Management Approach for Sea Oriental Markets”.

Article 16 was extended and amended to read: “Any project funded by the National Ministry of Science and Technology, such as major scientific and technical specifications, 863 plans, science and technology support plans, firesh plans, national priorities laboratories and engineering technology research centres, scientific and technological innovation funds for small and medium-sized enterprises, shall be financed by a financial contribution not less than 30 per cent of the national funding, as well as by the social announcements”.

Article 17: “The city finance should gradually increase the investment in enterprise technology innovation and, in addition to the application of technical research and the development of the financial budget base, arrange specific funding from 2010 to promote technological innovation in small and medium-sized enterprises. This specific provision is mainly used to guide and support the implementation of technological innovations by other small and medium-sized enterprises that have not been identified through national and municipal high-technical enterprises, organized by the municipal science and technology administration authorities.

Articles 11, 14 reproduce Article 18 and amend paragraphs 2 and 3 to read: “The STIs invest more than 70 per cent of the total investment of high-technical enterprises in higher-technical enterprises, with the approval of the municipal science and technology administrative authorities, which pays 50 per cent of the income tax market level in the year, with financial support from earmarked funds.”

“Establishment of the STI project assessment mechanism. Any high-technical project involving municipal science and technology venture investment in risk investments should be evaluated by a competent assessment body, which is made available to the community by the municipal science and technology administration.

Article 14, paragraph 4, was deleted.

Article XIII, Article 18 is extended to Article 22 and amend paragraph 1 as follows: “Encourage all types of scientific and technological talents to entrepreneurship in the city, process the entry of all types of science and technology talents and implement the provisions of this city relating to talents”.

Article 19 was deleted.

Articles XV, 20 were reproduced as article 23, and the words “human resources” in paragraph 1 were amended to read: “Sexclusive technology”; and “intellectronic results” were amended to read: “The patent results”.

In the order of XVI, other provisions, the changes were adjusted accordingly.

This decision is implemented effective 1 January 2010.

A number of provisions for the development of a new technology industry at the sea level are released in accordance with this decision and in the order of the provision.

Annex: Several provisions for the industrial development of high-level new technologies in the city of Sea (as amended in 2009)

(Adopted by Decree No. 58 of 13 May 2006 of the People's Government of the Sea on 19 November 2009, as amended by the Decision of the Government of the Sea concerning the amendment to the provisions of the Decision on the revision of the provisions of the Decision of the Government of the People's Republic of the Sea for the development of a number of new technology industries

Chapter I General

In order to encourage and promote the development of the new technology industry in this city, this provision is based on laws, regulations and regulations such as the People's Republic of China Act on Science and Technology Progress, the People's Republic of China Act on Promoting the Transformation of Science and Technology Outcomes and the Shanghai South Province Promotion of Science and Technology Progress Regulations.

Article 2, paragraph 2, applies to high-technical enterprises and their projects identified by the scientific and technical authorities and registered in the city.

The enterprise enjoys this provision and its policy of enabling specialized industries, in accordance with the High Principles.

Article 3 states that the high new technologies referred to in this Article include, inter alia:

(i) Electronic and information technology;

(ii) Biological engineering techniques and new medicine technologies;

(iii) New material technologies and applications;

(iv) advanced manufacturing technologies;

(v) Aerospace technology;

(vi) Modern agricultural technologies;

(vii) New energy and efficient energy technologies;

(viii) Environmental protection technologies;

(ix) Marine engineering technologies;

(x) Nuclear applications;

(xi) Other new processes and new technologies used in traditional industrial transformation.

Article IV provides a focus on new technologies such as e-information, biowork, medicine, marine development, automotive and oil verifiers.

The municipal government has increased its input to science and technology and its support for high-technical industries, supported high-technical enterprises and their projects by financially dedicated funding, investment in science and technology risks, financing security, lower registration thresholds and the establishment of high-technical industrial incubators, and encouraged autonomous innovation and the development of high-technology and their products.

Article 5 imposes a high-technical enterprise and project identification system. Emerging new technologies and projects identified should be publicized to society.

Chapter II Registration

Article 6. Science and technology-based enterprises are registered directly by the municipal and commercial administration, with scientific and technical enterprises in the tax area authorized by the levies and the business administration sector.

In carrying out scientific and technological enterprise registration, the business administration sector, in addition to national legislation, regulations that should conduct specialized approvals, shall not review specific business projects, which are autonomously selected for business projects and carry out business activities.

In registering registration, the applicant shall apply for the approval of specific business projects by the business administration authorities, which shall be admissible by the competent business administration and, in accordance with the relevant provisions, are indicated in the Business Licence.

In accordance with the conditions of registration, the business administration sector should license a nuclear operation within five working days from the date of receipt of the request.

Article 7. Small-scale scientific and technological enterprises, established by science and technology personnel, national retention and university graduates, are generally eligible for business and may be licensed in the business sector.

Article 8 The science- and technology-based business project is more than two industries, and its registration capital should be adapted to the scale of operation, and legal, administrative regulations provide for the minimum number of registered capitals for enterprises.

Article 9. A one-time injecting funds for small and medium-sized enterprises of science and technology is difficult and can be injected in part. The first amount injection within one month of registration should not be less than 10 per cent of the total registered capital, but the amount injected in one year was less than 50 per cent of the total registered capital, and the last period should be injected within three years after registration. More than 1 million companies are registered with the name of “Northern”.

Article 10, which is funded by companies with high new technology results, know-how, or patent results, can reach 70 per cent of registered capital.

The value of the company's registration capital is to be assessed by the assessment body, either by means of high-technical results or by technical and patent results.

Chapter III Encouragement

Article 11 establishes special funds for the development of new technology industries at sea level (hereinafter referred to as “special funds”. The city's financial sector, in accordance with its financial resources, arranges funds specifically for projects aimed at enabling identified high-technical enterprises. Priority support is given to ownership of intellectual property and market competitiveness.

The municipal science and technology administration authorities submitted a budget for special funding subsidies for high-level new technology enterprises in the previous year at the beginning of each year, which is included in the annual budget after the approval of the municipal finance sector.

Article 12

Specific funds for the prior financial arrangements, 80 per cent for technological innovation in this enterprise, 20 per cent for the establishment of municipal science and technology venture investment funds.

Article 13

Article 14.

(i) Technical or process routes are at the domestic level;

(ii) Productively sound, core components and self-development production;

(iii) Products take the lead in the formulation of technical standards or their core technology with inventions or new types of patents.

Article 15. High-level new technology projects that are eligible for patent protection should be applied in a timely manner.

Funding is provided in accordance with the relevant provisions of the Patent Fundraising Management Scheme for the City to apply or implement a transferable patent project. The patent transferee or the licensee may extract less than 20 per cent of the inventions or designers from their incomes and may be included in the management costs; and maintain a portion of the income tax rate of the individual paid to them, with 100 per cent of the funds earmarked.

Article 16 projects funded by the National Ministry of Science and Technology such as major scientific and technical specific, 863 plans, science and technology support plans, fireshting plans, national focus new products plans, national focus laboratories and engineering technology research centres, scientific and technological innovation funds for small and medium-sized enterprises, etc. Any project declaration is recommended or submitted by the municipal science and technology administration authorities, which are financed by finance from earmarked funds not less than 30 per cent of the country's funds, and public health.

Article 17 The city's finance should gradually increase the investment in enterprise technology innovation and, in addition to the application of technical research and the development of the capital budget base, earmarked funds should be organized from 2010 to promote technological innovation in small and medium-sized enterprises. This specific provision is mainly used to guide and support the implementation of technological innovations by other small and medium-sized enterprises that have not been identified through national and municipal high-technical enterprises.

Article 18 established investment funds for science and technology risks at sea level. The municipal governments have organized annual scientific and technical venture investment funds in accordance with financial resources to guide national and international organizations and individuals in the establishment of scientific and technical risk investment institutions or investing directly in high-technology projects in the city.

STIs invest more than 70 per cent of the total annual investment in high-technical enterprises, with the approval of the municipal science and technology administrative authorities, which pays 50 per cent of the income tax level in the year, with financial support from earmarked funds.

The establishment of a technology risk investment project assessment mechanism. High-level new technology projects involving municipal science and technology venture investment in risk investments should be evaluated by a qualified assessment body, with the approval of the municipal science and technology administrative authorities.

Article 19 encourages domestic and foreign enterprises and other organizations to establish credit security institutions in this city to provide credit security to high-technical enterprises.

The credit security institutions actively expand the security operations of small and medium-sized scientific enterprises, and secure funds ladder to high-technical enterprises and projects in line with industrial policies, market prospects, and high-technical enterprises and projects with good credit capacity.

Article 20 encourages the development of science and technology brokering services and the provision of diversified science and technology results-based services for high-technical enterprises. The science and technology brokering services that contribute significantly to promoting the transformation of scientific and technological results and the development of high-technical industries are supported by finance from earmarked funds, following approval by the municipal science and technology administrative authorities.

Article 21 establishes a new technology industrial incubators at sea level. The city Government has organized a channel of support for the building and development of incubators from scientific and technical funding. Domestic and foreign enterprises, high schools, scientific institutions, industry associations and their investment actors are encouraged to participate in the building of high-new technology industrial incubators and to promote the interactive development of various incubators.

The above-mentioned high-technical enterprise incubators refers to economic entities that provide spaces, instruments, funds and technology, information, marketing, advisory services for the development of a new advanced new technology enterprise.

Article 2 encourages all types of scientific and technological talents to entrepreneurship in the city, to be implemented in accordance with the provisions of this city relating to the admission of talents.

External science and technology personnel, as well as high-technical enterprises established by national retentioners in this city, enjoy the preferential policies of the city.

The departments concerned should provide assistance to foreign scientific and technical personnel working in the city, the legitimate entry into and exchange of personal licit income to ensure that they are lawfully free of entry and free and personal income.

Article 23 retains a portion of the income tax level for individuals who have paid their equity benefits by virtue of the results of high-new technologies, the exclusive technology or patent results, and provides 100 per cent of the earmarked funds within five years.

Various types of scientific and technical incentives received by scientific and technological personnel in this city, with the approval of the municipal science and technology administration authorities, remain part of the tax level of the individual paid to them, with financial support of 100 per cent from earmarked funds.

Article 24 states that the introduction of good talents by the municipal personnel organizations should be confirmed by the relevant preferential treatment procedures.

Chapter IV

Article 25

Article 26