The Wuqing Economic Development Area, a development area approved by the state, enjoy all the preferential policies that the State has made toward high-tech industrial development areas and open coastal regions.

1. Taxation:

- The export products made by foreign-invested enterprise are exempt from value-added taxes.

- The high-tech enterprises will be levied an imcome tax of 15%.

- The foreign-invested enterprise with an operation period over 10 years, is allowed exemption from income tax in the first two profit-making years, and a 50% reduction for the further three years.

As for the enterprise with advanced technology, an income tax of 10% will be levied for the succeeding three years. A new domestic-invested high-tech enterprise is grantedexemption from income tax for two years commencing from the month it gets the first business income.

- Profits gained out of the foreign-invested enterprise by investors outside China can be exempt from income tax for remittance to abroad.

- As of self-built premises for production and operation by enterprise in the development area, the investment-orientation regulation tax levied on fixed assets is at a rate of zero.

- Real Estate Tax will be imposed accrding to the original value of the real estate and affiliated equipments of the integrated facilities. The annual ratio will be 1.2%, a 30% discount offered.

2. Land Use Fee:

An enterprise, with the land use right granted after payingup the land traansfer fee, will be charged a land use fee at a rate of RMB 1/m2 each year. Enterprises with advanced technology and export-oriented enterprises are exempt from land use fee for three years, and will be charged by 40% in the following 2 years.