Shanghai Government Encourage Foreign Investor to Set up R&D Center

According to the latest data, there have been over 388 foreign R&D centers in Shanghai till the end of June, among which, there are 229 independent R&D centers which takes one-fourth of the national data. Foreign R&D centers in Shanghai were mainly involving in the information technology and the medical industry. Further, for the purpose of setting up Shanghai Technology and Innovation Center, Shanghai government issues series of favorable policies to encourage setting up foreign R&D center. We listed the following main aspects and points.


1.     To encourage setting up various kinds of foreign R&D centers;

l  The content of R&D covers the basic research, the applicant research, the product development and so on;

l  The types of company cover the wholly-owned, the joint venture, the cooperative venture or the branches;

2.     To combine R&D centers into Shanghai Innovation System;

l  To encourage the R&D experts to join in the early stage for local government projects;

l  To encourage the R&D center to cooperate with local universities and local R&D institutions;

l  To stimulate the conversion of R&D result;

3.     To create the good innovation environment;

l  To give strong support on local IPR protection;

l  To optimize the management on environment evaluation;

l  To give favorable policy for equipment import and export/non-trading foreign exchange payment;

l  The local R&D center can also apply for the local governmental prizes;

4.     To attract and develop the innovation talents;

l  The employment training for R&D center can apply for the subsidies according to the local policy;

l  For the overseas talents, the government encourages to cooperate with local academies. Further, their working experience and technology devotions can be admitted;

l  Favorable policies for applying for VISA, local residency;

5.     To increase the financial support;

l  The import duty for self-using equipments can be exempted;

l  The income related to technology transferring, development and its relevant consulting and services can be applicable for VAT exemption;

l  For the qualified Hi-tech or technology advancing service provider, the EIT is applicable for 15%.


Dongjin comments: Shanghai government gives full policy support to encourage foreign investor to set up R&D centers in Shanghai. The government will have the strong support on the equipment, technology, academic, talents as well as create the online platform for the conversion of R&D result and R&D industrialization. The IPR protection will also apply for the international standard. As a result, Shanghai is the best destination for foreign investor to set up R&D center in China. Our company has also the various experiences to help the foreign clients to set up R&D center. For detail matters, please contact me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021