Jiangsu to boost “Headquarters Economy” to attract foreign investment

2021/2/23 15:12:41  ourjiangsu.com

The headquarter economy often represents a region''s position in the global value chain. Recently, the newly revised Opinions on Encouraging Transnational Corporations to Establish Regional Headquarters and Functional Institutions in Jiangsu were officially released. Jiangsu is seizing the opportunity of China''s new round of opening-up, actively participating in the adjustment of the global industrial pattern and improving the quality and level of Jiangsu''s use of foreign investment.

Jiangsu just announced a new batch of transnational company''s regional headquarters just days ago. Rooted in Suzhou for 17 years, AGC was on the list this time. From the production of ordinary flat glass at the beginning, to the industry chain of the world''s leading automotive flexible 3d display glass nowadays, AGC can be a good example of Jiangsu''s sincerity to high-level foreign enterprises.

Jiangsu has identified 295 regional headquarters or functional institutions in 11 batches so far. A large number of transnational companies like Phoenix, Johnson & Johnson, AstraZeneca, settled in Jiangsu.

The headquarters economy of Jiangsu has formed an agglomeration development pattern of management headquarters, investment headquarters, R & D centers, logistics centers and other diversified institutions. In face of the new situation and new requirements for the development of foreign investment, Jiangsu recently revised the Opinions on Encouraging Transnational Corporations to Establish Regional Headquarters and Functional Institutions in Jiangsu. The new edition of the Opinions contains 22 articles in six chapters, revising and improving the accreditation standards and facilitation measures.

For example, the new version lowered the threshold of the parent company for functional institutions, from "no less than $200 million" to "no less than $100 million" in service sector.

In terms of application subjects of functional institutions, the new version expanded the scope from "separate legal entity" to "separate legal entity or unincorporated company", so as to further facilitate the declaration procedure of foreign-funded enterprises.

The new version of the opinion also expands the scope of the use of incentive funds, making it clear that 20 % of the start-up subsidies received can be used for talent introduction or reward. Meanwhile, regional headquarters and functional institutions can use up to 40 % of the funds for attracting executives or technical personnel.