General Introduction

Optoelectronics & information industry was founded quite early in Wuhan. The industry has delivered strong, effective, and sustained growth in recent years.

Especially in East Lake Developing Zone, a number of universities and institutes, which are engaged in teaching or researching optoelectronics & information subjects, are coupled with many renowned optoelectronics & information companies, both home and abroad. Cooperating together, they enjoy recognizable advantages of high technology, qualified personnel, and firm industry foundation.

Preferential Policies

For Sino-foreign joint venture
(1) For Sino-foreign joint ventures investing energy, communication, port and jetty, tax will be levied on enterprise incomes according to 15% tax rate. If the operation period of the joint venture is over 15 years, with the approval of taxation authority, the method of tax levy first and tax return later can be used, from the year the enterprise gains profit, the enterprise income tax will be exempted from the first year to the fifth year, and will be half exempted from the sixth year to the tenth year. If the foreign merchant reinvest the city infrastructure with the profit obtained from the above-mention operation and the operation period will not be shorter than five years, with the approval of taxation authority, 40% of levied enterprise income tax of the reinvestment will be returned.
(2) Vehicle passage fee or other operation incomes levied on newly approved foreign financed enterprises investing infrastructure of communication, port and jetty and etc., with the approval of taxation authority, the method of tax levy first and tax return later can be used, the operation tax will be returned according to a proportion within the investment recovery period.
(3) Foreign financed enterprises investing city infrastructure can apply for establishment of matching comprehensive operation project along the infrastructure constructed by themselves or within appointed region. The price of required land for development will be decided according to the standard land price.
(4) Foreign investors are encouraged to buy part of stocks or a certain period of business right of city infrastructures of energy, communications and port and etc. Constructed or under construction. If foreign investors buy over 25% of stocks, with the approval of taxation authority, they will enjoy related preferential policy.
(5) For the foreign financed enterprises in the EDZ, with the approval of taxation authority, the method of tax levy first and tax return later can be used, from the year the enterprise gains profit, the local income tax will be exempted for ten years.
(6) The foreign financed enterprises in the EDZ will be levied on taxes and enjoy related preferential policies of the EDZ.
(7) For the foreign financed enterprises in the EDZ, they will be free for other administration fees except land fee.
(8) The technology of the foreign financed hi-tech enterprise can cover 35% of total registered capital.
(9) For the equipment of foreign financed hi-tech enterprises, which are used in development of hi-tech and production of hi-tech products, with the approval of the financial and taxation authorities, their depreciation can be accelerated. The depreciation fee will be kept to revamp for the enterprises.
(10) The foreign financed hi-tech enterprises with operation period over 10 years can have an additional three years for paying half of income tax after the specified reduction and exemption period of income tax expires, if the income tax rate after half exemption is lower than 10%, the income tax will be paid according to 10% income tax rate.
(11) For the foreign financed enterprise with products for export, after the specified reduction and exemption period of income tax expires, if the export goods value reaches over 50% of the output value of that year or over 1 million USD, the income tax can be half exempted. The income tax rate after half exemption is lower than 10%, the income tax will be paid according to 10% income tax rate.
(12) Encouraging transnational corporation for investment
a. The transnational corporations, which have more than three productive or infrastructure companies in China and which have had actual investment capital over 30 million USD, can apply for establishing investment companies in Wuhan.
b. The transnational corporations, which have established more than three foreign financed companies in Wuhan, can be approved to set up group corporation and can use the name of group corporation after approved by the industrial and commercial bureau.
c. The transnational corporations invested in the city infrastructures of communications, energy and etc. in Wuhan are allowed to control the stocks or to solely operate the city infrastructures besides otherwise specified by the Chinese Government.
d. The land application right price of the transnational corporation invested in large or medium projects, or technology and capital conglomerated projects and agricultural projects will be negotiated according to current price or will be paid by installments.


for investing the scientific and technical garden
In order to encourage foreign and domestic enterprises to invest in the garden, Wuhan Municipality provides special preferential policies as follows:

The enterprise productive project in the garden is exempted from municipal infrastructure compensation fees, extra education fees, commercial net work fees, and civil defense fees, Fixed assets investment adjustment is free from the tax. The non-production auxiliary project according to their own plan is exempted from the above-mentioned fees
In the garden, a newly built enterprise that deals with the development of real estates including warehouse, official building and factory building may also be exempted from income taxes in the first two years. Enterprises in the garden are exempted from administration fees.
Income tax rate to projects of energy, transportation and ports will be 15%. Enterprises with operation period over 15 years will be half exempted from income taxes from the first year that earn profits to the tenth year, Foreign investors who reinvest their after-tax profits to infrastructure projects for an operation period not less than 5 years will have 40% of the income tax paid for the reinvestment sum returned.
For equipment of foreign Hi-tech enterprises in the garden, which is used in production, depreciation charges will be used for improvement capital for enterprises.
The transnational companies, which have more than 3 productive or infrastructure companies in China and which have had actual investment capital over 30 million USD, can apply for establishing investment companies. The transnational companies, which have established more than 3 foreign-owned invested companies in Wuhan, can be approved to set up group.


for investing in Hi-tech industry
Income tax rate for Hi-tech enterprise is 15%. The enterprise will be exempted from income tax within 2 years from the production date; if the export value of an enterprise can reach over 50% of the total output value of the year, the income tax would be collected at the rate of 10%. The enterprise will be exempted from business tax of new technique royalty.
If annual net income of consulting, servicing and training in technique transfer: below 300,000 RMB per year, the enterprise will be exempted from income tax; if the annual net income: between 300,000 to 800,000 RMB, the enterprise will be collected the income tax and then refunded.
An enterprise which can produce hi-tech products in Wuhan city or pilot plant products listed in city plan will be collected the income tax and then refunded within 3 years; and refunded 50% of local proportion of appreciated tax.
After putting into production of the technology imported project, the enterprise will be refunded the income tax of net profit of the project within 3 years by financial department. If a Wuhan registered enterprise that develops the advanced computer software with potential application value has earned more than 10 million RMB per year.
The enterprise would be refunded the 80% of local proportion of new appreciated tax within 3 years. As for the hi-tech project in the EDZ, it will be free for other municipal administration frees except land fee.
The enterprise will be collected the stamp duty for the contract about Hi-tech transfer and then refunded it. When the enterprise establishes or purchases its workshops, the financial department will collect the real estate tax, and then refund it.
The technique that confirmed by local science and technology administration department can cover 35% of total registered capital.

List of Companies

Yangtze Optical Fiber
WIP (including Optical Communication)
Changjiang Ericsson Co. Ltd.
Wuhan Telecommunications Device Company
Wuhan NEC Optical Fiber Comunications Industry Co. Ltd.
Wuhan Changjiang Telecommunications Company
the Semiconductor Factory of Wuhan University
Huagong Laser Engineering Company
Chutian Laser Group Co. Ltd.
Optical Cable Transducer Center of Wuhan Industry University

Intellective Resources

There are 100,000 highly educated experts and technicians of 23 universities and 56 research institutes. One third of those people are engaging themselves in research and industrialization of optoelectronics & information technology. Among them, 10 academicians granted by Chinese Academy of Sciences (from altogether 42 in Wuhan) are doing great contribution to the field of optoelectronics & information technology.

Living and Working

Infrastructure
(1) Electric power supply
The Wuhan electric network consists of over 3392 kilometers of high-tension transmission lines whose kilovolt is 35 or above, and the power transmission transformers has a total capacity of 6.76 million KVA. The first and second phase projects whose total installed capacity is 1.20 million kilowatts in the Wuhan Yangluo power Plant have been completed and put into operation. Its third-phase project with an installed capacity of another 1.20 million starts to be in preparation
(2) Water supply
The daily water-supply capacity in Wuhan is 2.36 million cubic meters, the popularization of the supply of water for non-agricultural residents is 100%.
(3) Gas supply
The annual gas-supply capacity in Wuhan is 0.125 billion cubic meters and the annual supply of liquefied gas is 0.64 billion cubic meters. Now, the popularization of the gas usage is 73%, that is 0.815 million households. Mass transportation:
There are 6458 busses and 12,2 00 taxis in Wuhan, the occupation is 12 sets for every 10 thousand passengers, among the best in China.
(4) Telecommunications
Wuhan General Post office, one of the seven largest national post centers and the eight largest airline post centers, is the post center of the seven provinces in south China for telegraph and telephone transmission, mail distribution, and periodical issuing, and the largest mail distribution center in the central and southern China. It is capable to contact with 110 countries and regions by postal communication and deliver express mails to 380 cities and 200 countries and regions.  
Wuhan Telecommunication Bureau is an important national communication hub, where the Beijing-Wuhan-Guangzhou coaxial cable line intersects the Shanghai-Nanjing Wuhan-Chongqing optic-fiber cable communication line at Wuhan. The city’s installed capacity of programmed telephone is 1.80 million, ranking the 4th place among large-sized cities and now 1.03 million have been put into operation. The installed capacity of mobiles in the city is 0.42 million and now 0.23 million have been put into operation, taking the 5th place among Chinese capital cities.
 
Transportation
Wuhan megalopolis, noted for its "thoroughfares of nine provinces", is one of the few important national transportation and communications hubs consisting of railway, highway, waterway, airline, post and telecommunication. The annual freight volume hits 126.9 million tons, and the annual passenger traffic volume reaches 92.68 million passengers.
(1) Railway
The Beijing-Guangzhou railway runs through the city proper from the south to the north, and the Shanghai-Chongqing railway through the city proper from the east to the west. These two major national railways intersect with the Wuhan-Jiujiang, Wuhan-Danjiangkou, Beijing-Jiulong railways at Wuhan. Therefore, Wuhan railway stations can be linked directly up to the northern china, southwestern China, central and southern China, and eastern China, southwestern China, central and southern china, and eastern China railways networks.
At Hankou and Wuchang railway stations, 77 passenger trains depart from there per day. Those trains and the other 120 passenger trains passing through the two railway stations may directly connect 21 large-sized or medium-sized cities. The railway lines under the administration of the Wuhan Railway Subbureau reaches 14 and the total extension lines reaching 2705km.The annual freight volume hits 50.04 million tons and the annual passenger-traffic volume reaches 19.74 million passengers.  
The Wuhan highways are composed largely of national main roads No.107, No.316, No.318 and No.106 highways, creating around the Wuhan city proper nine major city exits. These national highways are also directly linked up to 15 provincial highways and 39 county and village highways. At present, the daily passing through capability reaches 85,000. The annual freight volume hits 5251 million tons and the annual passenger traffic volume reaches 65.21 million passengers.
(2) Waterway
Wuhan port is the first-grade port for opening to the outside world. It is the largest port along the Yangtze River. It covers an area of 1.23 million km2, economicially benefiting about one third of the national territory. The annual freight volume hits 2432 million tons and the annual passenger-traffic volume reaches 5.55million passengers.  
The international ships can sail directly to Wuhan port. The port of Qingshan special for foreign trade, established recently, has many shipping lines leading directly to 14countries and regions such as Russia, Japan, Singapore, Hong Kong and Macao.
(3) Airway
The airways in Wuhan have reached 50.scheduled flights per week. They can bring passengers to 43 cities and areas in China. The annual freight volume hits 31,200 tons, and the annual passenger - traffic volume reaches 2.174 million passengers. The new built Wuhan Tianhe Airport is one of the four largest freight airport, which enables the airline all over the world.

Homepage and Contact

web site: www.wehdz.gov.cn
Administration Commission of Wuhan East Lake High-Tech Development Zone  
Address: 540#, Luoyu road, Wuhan, Hubei, China  
Tel:027-87804115
Fax:027-87802764
Zip Code: 430079

General Introduction

Optoelectronics & information industry was founded quite early in Wuhan. The industry has delivered strong, effective, and sustained growth in recent years.

Especially in East Lake Developing Zone, a number of universities and institutes, which are engaged in teaching or researching optoelectronics & information subjects, are coupled with many renowned optoelectronics & information companies, both home and abroad. Cooperating together, they enjoy recognizable advantages of high technology, qualified personnel, and firm industry foundation.

Preferential Policies

For Sino-foreign joint venture
(1) For Sino-foreign joint ventures investing energy, communication, port and jetty, tax will be levied on enterprise incomes according to 15% tax rate. If the operation period of the joint venture is over 15 years, with the approval of taxation authority, the method of tax levy first and tax return later can be used, from the year the enterprise gains profit, the enterprise income tax will be exempted from the first year to the fifth year, and will be half exempted from the sixth year to the tenth year. If the foreign merchant reinvest the city infrastructure with the profit obtained from the above-mention operation and the operation period will not be shorter than five years, with the approval of taxation authority, 40% of levied enterprise income tax of the reinvestment will be returned.
(2) Vehicle passage fee or other operation incomes levied on newly approved foreign financed enterprises investing infrastructure of communication, port and jetty and etc., with the approval of taxation authority, the method of tax levy first and tax return later can be used, the operation tax will be returned according to a proportion within the investment recovery period.
(3) Foreign financed enterprises investing city infrastructure can apply for establishment of matching comprehensive operation project along the infrastructure constructed by themselves or within appointed region. The price of required land for development will be decided according to the standard land price.
(4) Foreign investors are encouraged to buy part of stocks or a certain period of business right of city infrastructures of energy, communications and port and etc. Constructed or under construction. If foreign investors buy over 25% of stocks, with the approval of taxation authority, they will enjoy related preferential policy.
(5) For the foreign financed enterprises in the EDZ, with the approval of taxation authority, the method of tax levy first and tax return later can be used, from the year the enterprise gains profit, the local income tax will be exempted for ten years.
(6) The foreign financed enterprises in the EDZ will be levied on taxes and enjoy related preferential policies of the EDZ.
(7) For the foreign financed enterprises in the EDZ, they will be free for other administration fees except land fee.
(8) The technology of the foreign financed hi-tech enterprise can cover 35% of total registered capital.
(9) For the equipment of foreign financed hi-tech enterprises, which are used in development of hi-tech and production of hi-tech products, with the approval of the financial and taxation authorities, their depreciation can be accelerated. The depreciation fee will be kept to revamp for the enterprises.
(10) The foreign financed hi-tech enterprises with operation period over 10 years can have an additional three years for paying half of income tax after the specified reduction and exemption period of income tax expires, if the income tax rate after half exemption is lower than 10%, the income tax will be paid according to 10% income tax rate.
(11) For the foreign financed enterprise with products for export, after the specified reduction and exemption period of income tax expires, if the export goods value reaches over 50% of the output value of that year or over 1 million USD, the income tax can be half exempted. The income tax rate after half exemption is lower than 10%, the income tax will be paid according to 10% income tax rate.
(12) Encouraging transnational corporation for investment
a. The transnational corporations, which have more than three productive or infrastructure companies in China and which have had actual investment capital over 30 million USD, can apply for establishing investment companies in Wuhan.
b. The transnational corporations, which have established more than three foreign financed companies in Wuhan, can be approved to set up group corporation and can use the name of group corporation after approved by the industrial and commercial bureau.
c. The transnational corporations invested in the city infrastructures of communications, energy and etc. in Wuhan are allowed to control the stocks or to solely operate the city infrastructures besides otherwise specified by the Chinese Government.
d. The land application right price of the transnational corporation invested in large or medium projects, or technology and capital conglomerated projects and agricultural projects will be negotiated according to current price or will be paid by installments.


for investing the scientific and technical garden
In order to encourage foreign and domestic enterprises to invest in the garden, Wuhan Municipality provides special preferential policies as follows:

The enterprise productive project in the garden is exempted from municipal infrastructure compensation fees, extra education fees, commercial net work fees, and civil defense fees, Fixed assets investment adjustment is free from the tax. The non-production auxiliary project according to their own plan is exempted from the above-mentioned fees
In the garden, a newly built enterprise that deals with the development of real estates including warehouse, official building and factory building may also be exempted from income taxes in the first two years. Enterprises in the garden are exempted from administration fees.
Income tax rate to projects of energy, transportation and ports will be 15%. Enterprises with operation period over 15 years will be half exempted from income taxes from the first year that earn profits to the tenth year, Foreign investors who reinvest their after-tax profits to infrastructure projects for an operation period not less than 5 years will have 40% of the income tax paid for the reinvestment sum returned.
For equipment of foreign Hi-tech enterprises in the garden, which is used in production, depreciation charges will be used for improvement capital for enterprises.
The transnational companies, which have more than 3 productive or infrastructure companies in China and which have had actual investment capital over 30 million USD, can apply for establishing investment companies. The transnational companies, which have established more than 3 foreign-owned invested companies in Wuhan, can be approved to set up group.


for investing in Hi-tech industry
Income tax rate for Hi-tech enterprise is 15%. The enterprise will be exempted from income tax within 2 years from the production date; if the export value of an enterprise can reach over 50% of the total output value of the year, the income tax would be collected at the rate of 10%. The enterprise will be exempted from business tax of new technique royalty.
If annual net income of consulting, servicing and training in technique transfer: below 300,000 RMB per year, the enterprise will be exempted from income tax; if the annual net income: between 300,000 to 800,000 RMB, the enterprise will be collected the income tax and then refunded.
An enterprise which can produce hi-tech products in Wuhan city or pilot plant products listed in city plan will be collected the income tax and then refunded within 3 years; and refunded 50% of local proportion of appreciated tax.
After putting into production of the technology imported project, the enterprise will be refunded the income tax of net profit of the project within 3 years by financial department. If a Wuhan registered enterprise that develops the advanced computer software with potential application value has earned more than 10 million RMB per year.
The enterprise would be refunded the 80% of local proportion of new appreciated tax within 3 years. As for the hi-tech project in the EDZ, it will be free for other municipal administration frees except land fee.
The enterprise will be collected the stamp duty for the contract about Hi-tech transfer and then refunded it. When the enterprise establishes or purchases its workshops, the financial department will collect the real estate tax, and then refund it.
The technique that confirmed by local science and technology administration department can cover 35% of total registered capital.

List of Companies

Yangtze Optical Fiber
WIP (including Optical Communication)
Changjiang Ericsson Co. Ltd.
Wuhan Telecommunications Device Company
Wuhan NEC Optical Fiber Comunications Industry Co. Ltd.
Wuhan Changjiang Telecommunications Company
the Semiconductor Factory of Wuhan University
Huagong Laser Engineering Company
Chutian Laser Group Co. Ltd.
Optical Cable Transducer Center of Wuhan Industry University

Intellective Resources

There are 100,000 highly educated experts and technicians of 23 universities and 56 research institutes. One third of those people are engaging themselves in research and industrialization of optoelectronics & information technology. Among them, 10 academicians granted by Chinese Academy of Sciences (from altogether 42 in Wuhan) are doing great contribution to the field of optoelectronics & information technology.

Living and Working

Infrastructure
(1) Electric power supply
The Wuhan electric network consists of over 3392 kilometers of high-tension transmission lines whose kilovolt is 35 or above, and the power transmission transformers has a total capacity of 6.76 million KVA. The first and second phase projects whose total installed capacity is 1.20 million kilowatts in the Wuhan Yangluo power Plant have been completed and put into operation. Its third-phase project with an installed capacity of another 1.20 million starts to be in preparation
(2) Water supply
The daily water-supply capacity in Wuhan is 2.36 million cubic meters, the popularization of the supply of water for non-agricultural residents is 100%.
(3) Gas supply
The annual gas-supply capacity in Wuhan is 0.125 billion cubic meters and the annual supply of liquefied gas is 0.64 billion cubic meters. Now, the popularization of the gas usage is 73%, that is 0.815 million households. Mass transportation:
There are 6458 busses and 12,2 00 taxis in Wuhan, the occupation is 12 sets for every 10 thousand passengers, among the best in China.
(4) Telecommunications
Wuhan General Post office, one of the seven largest national post centers and the eight largest airline post centers, is the post center of the seven provinces in south China for telegraph and telephone transmission, mail distribution, and periodical issuing, and the largest mail distribution center in the central and southern China. It is capable to contact with 110 countries and regions by postal communication and deliver express mails to 380 cities and 200 countries and regions.  
Wuhan Telecommunication Bureau is an important national communication hub, where the Beijing-Wuhan-Guangzhou coaxial cable line intersects the Shanghai-Nanjing Wuhan-Chongqing optic-fiber cable communication line at Wuhan. The city’s installed capacity of programmed telephone is 1.80 million, ranking the 4th place among large-sized cities and now 1.03 million have been put into operation. The installed capacity of mobiles in the city is 0.42 million and now 0.23 million have been put into operation, taking the 5th place among Chinese capital cities.
 
Transportation
Wuhan megalopolis, noted for its "thoroughfares of nine provinces", is one of the few important national transportation and communications hubs consisting of railway, highway, waterway, airline, post and telecommunication. The annual freight volume hits 126.9 million tons, and the annual passenger traffic volume reaches 92.68 million passengers.
(1) Railway
The Beijing-Guangzhou railway runs through the city proper from the south to the north, and the Shanghai-Chongqing railway through the city proper from the east to the west. These two major national railways intersect with the Wuhan-Jiujiang, Wuhan-Danjiangkou, Beijing-Jiulong railways at Wuhan. Therefore, Wuhan railway stations can be linked directly up to the northern china, southwestern China, central and southern China, and eastern China, southwestern China, central and southern china, and eastern China railways networks.
At Hankou and Wuchang railway stations, 77 passenger trains depart from there per day. Those trains and the other 120 passenger trains passing through the two railway stations may directly connect 21 large-sized or medium-sized cities. The railway lines under the administration of the Wuhan Railway Subbureau reaches 14 and the total extension lines reaching 2705km.The annual freight volume hits 50.04 million tons and the annual passenger-traffic volume reaches 19.74 million passengers.  
The Wuhan highways are composed largely of national main roads No.107, No.316, No.318 and No.106 highways, creating around the Wuhan city proper nine major city exits. These national highways are also directly linked up to 15 provincial highways and 39 county and village highways. At present, the daily passing through capability reaches 85,000. The annual freight volume hits 5251 million tons and the annual passenger traffic volume reaches 65.21 million passengers.
(2) Waterway
Wuhan port is the first-grade port for opening to the outside world. It is the largest port along the Yangtze River. It covers an area of 1.23 million km2, economicially benefiting about one third of the national territory. The annual freight volume hits 2432 million tons and the annual passenger-traffic volume reaches 5.55million passengers.  
The international ships can sail directly to Wuhan port. The port of Qingshan special for foreign trade, established recently, has many shipping lines leading directly to 14countries and regions such as Russia, Japan, Singapore, Hong Kong and Macao.
(3) Airway
The airways in Wuhan have reached 50.scheduled flights per week. They can bring passengers to 43 cities and areas in China. The annual freight volume hits 31,200 tons, and the annual passenger - traffic volume reaches 2.174 million passengers. The new built Wuhan Tianhe Airport is one of the four largest freight airport, which enables the airline all over the world.

Homepage and Contact

web site: www.wehdz.gov.cn
Administration Commission of Wuhan East Lake High-Tech Development Zone  
Address: 540#, Luoyu road, Wuhan, Hubei, China  
Tel:027-87804115
Fax:027-87802764
Zip Code: 430079