A new government focus is being placed on the development of the southern city of Shenzhen as a location to base Chinese multinational enterprises.
An incentive scheme has been established to encourage local companies to go global. It is offering an award of 30 million renminbi (4.5 million US dollars) to any enterprise that is the first to enter the Fortune Global 500 and 10 million renminbi (1.5 million US dollars) to any enterprise included in the Fortune China 500 for the first time.
There are also strong incentives for highly-talented individuals to move to Shenzhen. ‘World-class’ scientists and researchers are being offered the choice of one of three options if they move to Shenzhen: a one-off payment of 6 million renminbi (926,000 US dollars); a rent-free 200 square meter apartment for ten years; or 10 million renminbi in cash and benefits, payable after 10 years. Other highly-skilled workers have had their rent subsidies increased from 4,800 to 10,000 renminbi (740-1,540 US dollars) per month and recent graduates may now qualify for one-off subsidies worth between 15,000 and 30,000 renminbi (2,300-4,600 US dollars) depending on their educational level. Those founding businesses will also receive increased rent subsidies and entrepreneurs that have gained previous experience in other countries are may qualify for initial funding of up to 1 million renminbi (154,000 US dollars) to launch new projects.
Guangzhou, another major southern Chinese city, is focusing its attentions on foreign accredited scientific or managerial ‘experts’ by offering a subsidy of 200,000 renminbi (31,000 US dollars), to be used to cover travel costs, accommodation and other expenses, for those who will work in the city. If the expert stays for over six months it may be used towards salary — provided it does not exceed 60% of the total salary paid.