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China Investment Guide
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Part One Macro Environment for Foreign Investment in Shanghai
 

4. Resources

4.2 Land Resources

The guideline of industrial land is: on the one hand, fully encouraging the development of advanced manufacturing and guaranteeing the land resources for speedy and steady development of manufacturing, and, on the other hand, abiding by the principle of energy efficiency and environmentally friendly city, Shanghai are now improving policy mechanism of “approving project application, and checking land usage”.

From 2004, Shanghai enacted:

Shanghai Guide for Industrial Land,

Shanghai Guide for Industrial Layout and Orientation,

Shanghai Directory of Key Industries for Foreign Investment,

Shanghai Guide for Energy Efficiency and Output,

Shanghai Guide for Technology of Advanced Manufacturing,

Recommendations for Intensive Land Usage and Trial of Industrial Land Assessment,

Notice on the Evaluation of Industrial Parks (Temporary),

Shanghai Guide of Land Supply to Industries (Temporary).

All these documents provide solid policy support and criteria to the mechanism of “Approving Project Application, and Checking Land usage”.

In 2005, Shanghai did inspection and approval of industrial land for 2 batches of investments by way or joint team of all relevant departments. The time for approval was shortened and efficiency was improved. Practically, the responsible authority, procedure and criteria of the mechanism of “Approving Project Application, and Checking Land Usage” kept improving. As a result, the quality and level of the newly approved projects were significantly improved.

For the purpose of a better and more efficient utilization of industrial land and improving the system of “Approving Project Application, and Checking Land Usage”, relative government departments are studying the responsibility break down of municipality and districts, optimizing procedures, improving land transfer contracts, exploring industrial land reservation and bidding, establishing land evaluation system (including project evaluation and industrial park evaluation), and other relative policies. All these efforts are committed to guaranteeing harmonious and sustainable development of industries.

In the land supply, Shanghai guarantees key supporting commercial resident communities and medium/low price apartments. At the same time, land is also provided to projects of market operation. Since 2003, all land for commercial projects are transferred through public bidding. In the circumstances of a unified land market, land is available to both domestic and foreign investors in way of bidding. In 2005, 2930.5 hectares of land were transferred, 5 % more compared with that of in 2003. The total floor area was 66.99 million m2, 6.7% more than that in 2003.

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