Notice of Zhejiang Provincial Department of Commerce and Zhejiang Provincial Department of Science and Technology on Revising and Issuing the *Guidin

Guiding Opinions on Encouraging the Establishment and Development of Foreign-invested R&D Centers

I. Overall Objectives

Focusing on the "315" Science and Technology Innovation System and the "415X" Advanced Manufacturing Cluster, we will vigorously support Fortune Global 500 and leading foreign-funded enterprises in their industries to set up R&D institutions in Zhejiang, support them to increase R&D investment and carry out collaborative innovation, so as to promote the continuous increase in the number of foreign-invested R&D centers and continuous improvement of their operation levels.

II. Confirmation Criteria

1. Foreign-invested institutions engaged in research and development and experimental development established in our province, including independent legal entities, internal independent departments or branches;

2. Having necessary scientific research conditions such as clear research fields and projects, full-time R&D and management personnel, fixed premises, and instruments and equipment;

3. The total accumulated R&D investment is no less than 2 million US dollars.

III. Policy Measures

(1) Supporting the Development of Scientific and Technological Innovation

1. Tax support.

Foreign-invested R&D centers that meet the requirements of the *Notice on the Administrative Measures for Preferential Import Tax Policies to Support Scientific and Technological Innovation during the 15th Five-Year Plan Period* (Cai Guan Shui [2026] No. 8) may enjoy relevant policies in accordance with regulations. The list shall be verified and issued by the provincial departments of commerce, finance, taxation and Hangzhou Customs; in Ningbo, it shall be verified and issued by the corresponding municipal departments and Ningbo Customs.

Where a foreign-invested R&D center is recognized as a high-tech enterprise, the enterprise income tax shall be levied at a reduced rate of 15%. For equity awards given to technical personnel by high-tech enterprises for transforming scientific and technological achievements, if an individual has difficulty paying the tax in a lump sum, they may independently formulate an installment payment plan according to the actual situation, and pay the tax in installments within no more than 5 calendar years (inclusive). We will implement the policy of additional tax deduction for enterprise R&D expenses and preferential tax policies for basic research. Value-added tax shall be exempted for taxpayers providing technology transfer, technology development and relevant technical consulting and technical services. Where overseas investors make reinvestment with domestic profits to establish R&D centers with independent legal person status, the pre-withholding income tax shall be deferred; those meeting the conditions may also apply for the reinvestment tax credit policy.

Where foreign investors establish R&D centers in China through intra-group restructuring, they may apply the special tax restructuring policy if they meet the conditions. If a foreign-invested R&D center has real difficulty in paying real estate tax in its initial stage of establishment, it may apply for real estate tax reduction or exemption in accordance with regulations.

2. Industry-university-research cooperation.

We will guide foreign-funded enterprises to apply for provincial science and technology plan projects, support the assignment of "Vice President for Science and Technology" to foreign-funded enterprises, and encourage them to cooperate with universities, science and innovation platforms to carry out technology R&D and application. We will encourage ordinary colleges and universities in our province to carry out cooperation with foreign-invested R&D centers in scientific research, postgraduate training, and co-construction of industrial colleges, support vocational colleges in our province to co-build practical training bases and collaborative innovation platforms for technical skills with foreign-invested R&D centers, and invite foreign-invested R&D centers to participate in international technology exchange and docking activities.

In accordance with the principle of "setting up stations first and granting licenses later", we encourage foreign-invested R&D centers to establish provincial-level enterprise postdoctoral workstations, support them to apply for national postdoctoral research workstations in accordance with regulations, and recommend qualified postdoctoral research workstations to apply for the independent recruitment qualification for postdoctoral researchers.

3. R&D land security.

We will guarantee the reasonable land demand of foreign-invested R&D centers, optimize the spatial pattern of scientific research and innovation, and promote the integrated development of scientific research innovation and urban functions.

4. Improve financial support for scientific and technological innovation.

We will promote financing docking between banks and enterprises, and encourage financial institutions to provide financial support for foreign-invested R&D centers to engage in basic and cutting-edge research under the premise of controllable risks and commercial sustainability. We will promote the quality and efficiency improvement of cross-border financing facilitation policies.

5. Support the establishment and development of open innovation platforms.

We will support foreign investors to set up open innovation platforms. All localities shall strengthen factor guarantee, and promote the platforms to carry out collaborative innovation with enterprises, institutions of higher learning and scientific research institutes by providing facilities and equipment, R&D sites and professional guidance. Enterprises settled in the platforms are supported to apply registration methods such as "one address with multiple licenses" and cluster registration.

6. Smooth channels for participating in government projects.

We will enhance the inclusiveness and friendliness of the government's science and innovation system for foreign-invested R&D centers. Except for clearly restricted provisions, qualified foreign-invested R&D centers and foreign scientific researchers are encouraged and supported to apply for various government science and technology plans of our province, so as to improve the convenience of application.

Foreign-invested R&D centers are supported to legally use large-scale scientific research instruments that are openly shared in our province and inquire about scientific and technological reports of provincial science and technology plan projects. For new R&D institutions established by foreign investors that provide services for R&D of key generic technologies in the region, all localities may formulate support measures in light of actual conditions.

(2) Improving R&D Facilitation

7. Optimize the customs clearance and supervision procedures for scientific research materials.

We will speed up the handling of quarantine examination and approval applications for entry of genetically modified organisms of animals and plants and biological materials for scientific research submitted by foreign-invested R&D centers. For applications whose final review authority lies in the General Administration of Customs and meets the requirements, the preliminary review shall be completed and submitted for report immediately. For applications whose final review authority lies in Hangzhou Customs and Ningbo Customs and meets the requirements, the quarantine license shall be issued immediately.

The number of temporarily imported and exported test vehicles shall be verified according to the contracts, agreements and other documents provided by the consignors and consignees. The time limit for temporarily imported goods shall be extended in accordance with regulations, with no more than 3 extensions and no more than 6 months for each extension. If the goods temporarily imported and exported for national key projects and national scientific research projects still need to be extended after the expiration of the extension period, the matter shall be approved by the competent customs directly under the General Administration of Customs.

8. Environmental ecological management services.

We will implement classified management of environmental impact assessment for foreign-invested R&D centers. For projects that meet the requirements of the "regional EIA + environmental standard" reform, the development of new material pilot test platforms and the construction and management of pilot test projects, measures such as streamlining content and exempting from examination and approval may be adopted; and we will strengthen in-process and post-event supervision.

9. Support the lawful cross-border flow of R&D data.

We will implement laws and regulations such as the *Cybersecurity Law* and the *Data Security Law*, open up channels for consultation and declaration of data exit security assessment, carry out security assessment efficiently, and promote the safe, standardized and orderly flow of R&D data.

10. Optimize the management procedures for the overseas transfer of intellectual property rights and the import and export of technologies.

We will implement the relevant requirements of the China National Intellectual Property Administration and the Ministry of Commerce, guide all localities to strengthen policy publicity, training guidance and public services for the overseas transfer of intellectual property rights of foreign-invested R&D centers, and provide foreign-related intellectual property rights protection assistance services. We will improve the foreign-related intellectual property rights risk prevention and control system, and optimize the whole-process closed-loop handling mechanism of pre-warning, in-process response and post-event feedback.

(3) Encouraging the Introduction of Overseas Talents

11. Improve the convenience of overseas talents working in Zhejiang.

For foreign talents recommended by foreign-invested R&D centers, convenience for permanent residence application shall be provided in accordance with regulations. For foreign employees employed by foreign-invested R&D centers, they may apply for work and residence permits for foreigners with a validity period of no more than 5 years according to the employment contracts, and assist Chinese employees of foreign-invested R&D centers to apply for APEC Business Travel Cards in accordance with regulations. High-level foreign talents and talents in urgent need may, with the confirmation letter from the foreign expert department, apply to the Chinese diplomatic and consular missions abroad for R visas with a maximum validity period of 10 years and a maximum stay of 180 days each time. The spouses and minor children of the above-mentioned talents may apply for corresponding types of visas. For foreign talents employed by foreign-invested R&D centers with good credit, when handling work permits for foreigners coming to China, the certification of academic qualifications, professional qualifications, work experience, no criminal record and other supporting documents may adopt the commitment system in accordance with regulations, and the scope of acceptance with missing documents shall be expanded.

12. Strengthen the intensity of high-level talent introduction and service guarantee.

We support R&D enterprises to introduce high-level talents at home and abroad. For high-end and urgently needed talents they employ, those who meet the conditions may settle down directly; personnel of qualified foreign-invested R&D centers may enjoy the talent housing subsidy policy in accordance with regulations. High-level talents may, at the place of their household registration (at the place of residence if they have no local household registration) or the place of their work unit, have their children's enrollment arranged in a relatively nearby manner by the local administrative department of education in a coordinated manner. We will strengthen the construction of schools for children of foreign personnel, support all localities to conduct investigation and make overall planning in areas with a high concentration of introduced talents, and apply for the establishment of schools for children of foreign personnel on this basis. Full-time overseas high-end talents and urgently needed talents returning to China (coming to China) recognized by the Talent Office of the Organization Department of the Zhejiang Provincial Party Committee may enjoy green channel services for outpatient treatment, inpatient treatment and other medical services after completing relevant procedures.

13. Encourage overseas talents to apply for professional titles.

Returned overseas students with recognized qualifications in foreign-invested R&D centers may apply for corresponding professional titles according to their educational background and qualifications; qualified overseas high-end talents and urgently needed talents may directly apply for corresponding senior professional titles according to their landmark achievements, and overseas work experience, performance achievements and other contents can be used as the basis for evaluation.

14. Promote the facilitation of cross-border fund receipt and payment for overseas talents.

We will advance the pilot program of foreign exchange facilitation for overseas talents, include overseas talents of foreign-invested R&D centers in the pilot scope, support financial institutions to optimize procedures and simplify materials, so as to facilitate the handling of real and compliant businesses such as foreign exchange purchase and payment for salaries. We support financial institutions to handle cross-border RMB settlement under current accounts for overseas talents on the basis of the "Three Principles of Conducting Business", so as to facilitate the cross-border RMB receipt and payment of legal and compliant income. We will guarantee the reasonable housing demand of overseas talents, and optimize the procedures for the settlement and payment of the down payment for overseas talents to purchase houses in China.

15. Provide convenience for R&D talents in handling cross-border tax-related matters.

We will provide convenience for qualified individuals in foreign-invested R&D centers to issue the *Certificate of Chinese Tax Resident*. Individuals who obtain cross-border income may enjoy the treatment of tax agreements and the policy of foreign income credit in accordance with regulations. We will provide convenience for foreign-invested R&D centers to handle tax filing for foreign exchange payment.

(4) Improving the Level of Intellectual Property Protection

16. Strengthen the protection of trade secrets.

We will strengthen the judicial protection of trade secrets of all types of market entities in accordance with laws and regulations, and investigate and punish illegal acts of trade secret infringement in accordance with the law. We will implement the responsibility system of "who enforces the law shall popularize the law", and increase the publicity and popularization of laws and regulations on trade secret protection.

17. Strengthen the construction of intellectual property protection centers.

We will optimize the layout of national-level intellectual property protection centers and rapid rights protection assistance centers, and support areas with concentrated foreign-invested R&D centers to apply for the construction of national-level centers. We will expand the industrial scope of rapid patent pre-examination, and provide one-stop comprehensive services such as rapid examination, right confirmation and rights protection for foreign-invested R&D centers. We will open up a rapid handling channel for intellectual property disputes for foreign-invested R&D centers.

18. Improve the level of intellectual property law enforcement.

We will implement the punitive compensation system for intellectual property infringement. We will make good use of the administrative adjudication system for patent infringement disputes, and increase the enforcement intensity of administrative adjudication. We will continue to carry out special rectification against illegal acts of intellectual property infringement.

IV. Confirmation Procedures

1. The Zhejiang Provincial Department of Commerce issues a notice on the confirmation of foreign-invested R&D centers;

2. Qualified market entities submit applications to the foreign-investment competent departments of cities divided into districts;

3. The foreign-investment competent departments of cities divided into districts, in conjunction with relevant departments, conduct preliminary examination and submit to the Zhejiang Provincial Department of Commerce;

4. The Zhejiang Provincial Department of Commerce, in conjunction with relevant provincial departments, conducts re-examination and confirmation, and makes an announcement to the public.

The confirmation of foreign-invested R&D centers is conducted once a year in principle. If a confirmed foreign-invested R&D center fails to carry out substantial R&D activities within one year or is deregistered, the foreign-investment competent department of the city divided into districts shall apply for revocation, which shall be confirmed and announced by the Zhejiang Provincial Department of Commerce.

V. Management and Guarantee Measures

The Zhejiang Provincial Department of Commerce takes the lead in confirming foreign-invested R&D centers, and strengthens overall guidance in conjunction with relevant provincial departments. All localities are responsible for the service and management of foreign-invested R&D centers within their respective jurisdictions to ensure that they enjoy various support policies in accordance with the law.

VI. Supplementary Provisions

1. The establishment of foreign-invested R&D centers by investors from Hong Kong, Macao and Taiwan regions shall be implemented with reference to this Opinion.

2. This Opinion shall come into force on July 15, 2026. The document Zhe Shang Wu Lian Fa [2023] No. 81 shall be repealed simultaneously.

Source: Zhejiang Provincial Department of Commerce