1. If the land use conforms to over all planning of land use, the foreign capital enterprises shall enjoy priority in using construction land.

2. Foreign capital enterprises shall been couraged to obtain land use right by meaus of remise, leasehold, evaluated investment, or equity participation. Should the foreign capitalente rprises obtain land use right by means of remise, field use fee and state land use tax shall be exempted.

3. Should the foreign capital enterprises obtain land use right by means of transfer, the following preferential policies shall be applicable to the field use fee:

3.1 For high and new tech enterprises and export enterprises, if they use the original field, the field use fee shall be exempted for the first 3 years starting from the day the enterprises commence the operation. The use fee shall be reduced by half starting from the 4th year. If the operation period of the enterprises exceeds 10 years, the field use fee shall be exempted for the first 6 years. And the fee shall be reduced by half starting from the 7th years. For enterprises that develop the field the mselves or by commitment the field use fee shall beexempted for the first 5 years starting from the day the enterprises commitment the operation. The use fee shall be reduced by half starting from the 6th year. If the operation period of enterprises exceeds 10 years, the field use fee shall be exempted for the first 7 years. And the fee shall be reduced by half starting from the 8th year.

3.2 Field use fee shall be exempted for foreign capital enterprises which are engaged in public welfare undertaking, state-supported key non-profit projects including science and technology, education power station, high way, bridge, tap water plant (exclusive of urban pipe network), water conservancy etc.

3.3 Forenterprises engaged in the development and operation of agriculture, forestry, stockbreeding and fishery, the field use fee shall be exempted for the first 5 years starting from the day the enterprises ob tain the land use right. The fee shall be reduced by half starting from the 6 th year.

3.4 Should the field be used for mineral resources survey, the field use fee shall be exempted if the use period is 6 month or less. If the use period exceeds 6 month, the filed use fee shall be reduced by half.

3.5 Foreign capital enterprises shall pay field use fee starting from the day when the production commences. Should the period be longer than half year but shorter than one year, the fee shall be collected based on a half-year basis. Should the period be shorter than half year, the fee is exempted.

3.6 Foreign capital enterprises’ field use fee shall be collected by city (or county) land adminis trative authority of the located place.

4. Should the foreign investors make investment in grafting and renovation project of the industrial enterprises and high and new tech projects that conform to the industrial policies of Chengdu and require large amount of investment, special preferential land policies shall be applicable.

Regulations on Preferential Policies Encouraging Foreign Inves tment of Chengdu Municipal Government (brief)