Ningbo Economic & Technical Development Zone (NETD) is seeking more foreign investments from the high-end information technology, electronics and electrical sectors.
The 29.6 sq km zone northeast of China's Ningbo City, has a population of 5.4 million and is home to 6,863 foreign enterprises with a total investment of US$21.31bil. The investment cooperation bureau director Chen Xu Qin said recently that about 2,000 companies in Ningbo were involved in the electronics and electrical business.
"Only about 100 of them are involved in high-end electronics and electrical manufacturing. They are into making computer main boards, disk drives, personal device assistance, and wireless paging systems. Furthermore, since opening up in 1984, the electronics industry has grown an annual average of 30%," he said.
Chen said to attract investors the income tax rate had been set at 15%. "However, in the initial two years of making profits, there will be no income tax, and there will be 50% reduction for the subsequent three years. NETD is also giving privileges to entrepreneurs for project preparation, land price, infrastructure, technology introduction, and equipment renovation."