（Approved by the State Council of the People's Republic of China on May 10， 1988 and promulgated by the People's Government of the Beijing Municipality on May 20， 1988）
颁布日期：19880520 　实施日期：19880520 　颁布单位：国务院

Article 1 These Regulations are formulated for the purpose of facilitating the direct integration of science and technology with production and the optimal combination of science and technology with other production factors， promoting technical and economic development and supporting the establishment of an experimental area for developing new-technology industries.

Article 2 An area of approximately 100 square kilometres with the Zhongguancun Area as its centre shall be delineated in the Haidian District of the Beijing Municipality for the establishment of an export-oriented， open experimental area for developing new-technology industries （hereinafter referred to as the “experimental area”）。 The limits of the experimental area shall be planned and delineated by the People's Government of the Beijing Municipality.

Article 3 These Regulations shall apply to technology-intensive and intelligence- intensive economic entities that are engaged in the research， development， production and management of one or many types of their new technologies and the products thereof. The scope of new technologies and the products thereof shall be separately prescribed by the People's Government of the Beijing Municipality in accordance with the catalogues drawn up by the State Science and Technology Commission.

The proportional standards of the technical income， research and development expenditure and output value of new products of new-technology enterprises shall be formulated by the People's Government of the Beijing Municipality in consultation with the State Science and Technology Commission.

Article 4 The new-technology enterprises in the experimental area shall， after confirmation by the departments designated by the People's Government of the Beijing Municipality， register with the administrative department for industry and commerce in accordance with the pertinent provisions of the State.

Article 5 With respect to the new-technology enterprises in the experimental area， the following preferential treatment in the form of reduction of， and exemption from， taxes shall be effected：

（1） income tax shall be levied at a reduced rate of 15 percent. With respect to an enterprise whose output value of export products amounts to over 40 percent of the total output value of the same year， income tax shall， upon verification by the tax department， be levied at a reduced rate of 10 percent.

（2） a new-technology enterprise shall be exempted from income tax in the first three years following its inauguration and shall， upon approval by a department designated by the People's Government of the Beijing Municipality， be allowed a 50 percent reduction on the basis of the income tax rates prescribed in paragraph 1 of this Article in the fourth through sixth years.

（3） a new-technology enterprise may， upon approval by the People's Government of the Beijing Municipality， be exempted from buying the bonds for key construction projects issued by the State.

（4） houses of a productive and business nature built for technological development with self-raised funds shall be exempted from building tax in the five years beginning from 1988.

The above-mentioned preferential treatment in the form of reduction of， and exemption from， taxes shall be applicable to the enterprises with foreign investment established in the experimental area that measure up to the standards of a new-technology enterprise.

Article 6 The capital construction projects of the new-technology enterprises in the experimental area that are of a productive and business nature shall be arranged for construction in accordance with the unified planning. They shall not be incorporated into the scale of fixed assets investment.

Procedures for examination and approval shall be simplified and priority shall be given to their construction.

Article 7 No import licence shall be required for imported raw materials and parts and components that are needed for the production of export products by a new-technology enterprise in the experimental area and the Customs shall inspect and grant clearance on the strength of the contract and the document of approval issued by the department designated by the People's Government of the Beijing Municipality. Bonded warehouses and bonded factories may， upon approval by the Customs， be built in the experimental area and the Customs shall exercise supervision and control over the imported raw materials and parts and components in the same way as it deals with imported materials for processing. The Customs shall， based on the actual processed and exported quantities， grant exemption from import duties and product tax on the link of import or value added tax. Export products shall be exempted from export duties. Bonded goods that are to be shifted to the domestic market shall be subject to the approval of the original examining and approving department and the permission of the Customs and the taxes thereon shall be levied in accordance with the relevant regulations. With respect to products the import of which is restricted by the State or which are controlled by the State import licencing system， the procedures shall be made up for to obtain the document of approval for import or an import licence in accordance with the pertinent provisions of the State. If a new-technology enterprise is to import instruments and equipment for the development of new technology because China is not capable of producing them， they shall， on the strength of the document of approval issued by the examining and approving department and upon verification by the Customs， be exempted from import duties for the next five years.

The Customs may establish an agency or station a supervising group in the experimental area.

Article 8 The money resulting from the exemption from， or reduction of， taxes shall be placed on the State Supporting Fund and be used by the enterprises exclusively for the development of new technology and production and may not be used for collective welfare or for distribution among the workers and staff.

Article 9 The banks shall support the new-technology enterprises in the experimental areas by means of providing loans and shall allocate every year a certain amount from the repaid loans for technological transformation to be used for the development of new technology. Export-oriented new-technology enterprises shall be granted the priority of being provided with loans in foreign exchange. The banks shall， for three years following the day on which these Regulations go into effect， appropriate every year a certain amount of special loans to be used exclusively for the development and construction （including capital construction） of the new-technology enterprises in the experimental area. This special fund shall be for the exclusive use mentioned above and the banks shall control the turnover in its use. The banks shall arrange every year for the experimental area to issue a certain amount of long-term bonds to raise funds from society to support the development of new technology.

A new-technology enterprise may， upon approval by the tax department， repay the loans it has used before tax. If the loans are to be used for capital construction， they shall not be restricted by such provisions as having to be deposited for half a year and longer before they are used. The banks in the experimental area may draw a certain proportion from their interest income and found a loan risk fund. Chinese-foreign joint risk investment companies may be established in the experimental area.

Article 10 New-technology products import and export companies shall be established in the experimental area. New-technology enterprises that possess the necessary conditions shall be granted the right to foreign trade business operations by the People's Government of the Beijing Municipality and undertake export plans， assuming full responsibility for their own profits and losses. They may， upon approval by the State departments concerned， establish branch offices abroad. The foreign exchange earned by a new-technology enterprise shall be retained entirely by the enterprise for the first three years and shall， from the fourth year on， be divided between the local authorities and the foreign exchange earning enterprise， with 20 percent going to the former and 80 percent retained by the latter.

Article 11 With respect to new-technology enterprises in the experimental area that have relatively many economic and technical exchanges with foreign countries or relatively much products export business， if their commercial and technical personnel have to go abroad many times in a year， their first visit abroad shall be examined and approved by the People's Government of the Beijing Municipality and the later ones shall be examined and approved by the respective enterprises themselves.

Article 12 Instruments and equipment that are used by a new-technology enterprise in the experimental area for the development of new technology and the products thereof may be granted fast depreciation.

Article 13 New-technology enterprises in the experimental area may fix trial sale prices for the new products developed by themselves. If they handle the new-technology products that have not been unifiedly priced by the State， they may fix the prices for these products themselves.

Article 14 Technical personnel working in scientific research institutions， schools and enterprises are encouraged to do part-time jobs in the new-technology enterprises in the experimental area， or launch， lead the running of or contract various kinds of new-technology enterprises， or leave their jobs to take up positions in the new-technology enterprises. The departments concerned shall give them active support， provide convenience and protect their legitimate rights and interests.

New-technology enterprises shall be permitted to recruit graduating junior college students， graduating university students， postgraduates， returned students and foreign experts.

Article 15 New-technology enterprises in the experimental area shall be exempted from bonus tax. If the personal income of a person employed in such an enterprise reaches the standard where the regulatory tax for personal income shall be payable， a tax shall be levied in accordance with the relevant regulations.

Article 16 With respect to the various taxes paid by the new-technology enterprises in the experimental area， the whole amount that has been increased on top of the taxes paid in 1987， which are used as the radix， shall for five years be returned to the Haidian District. This amount shall be used for the development and construction of the experimental area and its use shall be supervised by the municipal financial and tax departments.

Article 17 The People's Government of the Beijing Municipality may formulate procedures of implementation and specific implementing provisions in accordance with these Regulations.

Article 18 These Regulations shall go into effect on the date of promulgation