The General Office of the People's Government of Hebei Province has issued a notice on several measures to further support the development of market entities.

The General Office of the People's Government of Hebei Province has issued a notice outlining several measures to further support the development of market entities.

Ji Government Office Document No. [2020] 157

People's Governments of all cities (including Dingzhou and Xinjishi), the Management Committee of Xiong'an New Area, and relevant departments of the Provincial Government:

"The Several Measures to Further Support the Development of Market Entities" have been approved by the provincial government and are now being distributed to you. Please carefully implement these measures in line with your specific circumstances.

Hebei Provincial People's Government General Office

September 16, 2020

(This document is released for public distribution.)

Several Measures to Further Support the Development of Market Entities

1. Relieving Financial Pressure

(1) Strengthen the implementation of tax and fee reduction measures. As of December 31, 2020, continue to enforce the following preferential policies: - Reducing the VAT rate for small-scale taxpayers from 3% to 1%; - Exempting VAT on services such as public transportation, catering, accommodation, tourism, entertainment, and cultural & sports activities; - Waiving the employer’s portion of basic pension, unemployment, and work-related injury insurance contributions for small, medium, and micro-sized enterprises; - Providing rent reductions or exemptions for small and micro-enterprises and individual businesses in the service sector renting state-owned asset-based commercial properties; - Lowering household electricity prices by 5% for all general industrial, commercial, and large industrial electricity users—excluding those in high-energy-consuming industries; - Eliminating port construction fees for import and export goods. Additionally, small and micro-enterprises, as well as individual businesses, are allowed to defer paying their 2020 income taxes until next year. For taxpayers in six sectors—transportation, catering, accommodation, culture and tourism, exhibition services, and film screenings—who rent commercial properties from other operators, property owners (landlords) are encouraged, on a mutually agreed basis, to offer rent reductions or deferrals to tenants. Local governments may provide subsidies based on actual conditions. Furthermore, landlords of large commercial buildings, shopping malls, markets, and industrial parks that provided rent relief to individual businesses during the pandemic—and subsequently face difficulties paying property taxes and urban land use taxes for the current year—may apply for hardship exemptions according to relevant policies and regulations. Finally, ensure full and timely refunds for all eligible export products that have not yet received full tax rebates (excluding "two high and one resource-intensive" products). Importers experiencing financial challenges due to the pandemic may apply for tax payment deferrals of up to three months.

(II) Strengthen Credit Support. Increase the allocation of inclusive finance loans, further reducing the overall financing costs for inclusive small and micro enterprise loans by an additional 0.5 percentage points. In 2020, local financial institutions across the province saw new inclusive small and micro business credit loans grow beyond last year’s levels, while five major state-owned commercial banks achieved growth rates exceeding 40% in their inclusive small and micro enterprise loan portfolios targeting our province. Banks are encouraged to refine their performance assessment and incentive mechanisms, boosting support for private-sector, SMEs, and micro-enterprises. Efforts will also focus on expanding access to “first-time” loans for small businesses, as well as increasing medium- and long-term manufacturing loans and credit-based financing options. The Shijiazhuang Central Branch of the People’s Bank of China will provide interest-free relending support equivalent to 40% of the principal amount for eligible institutions’ inclusive small and micro enterprise credit loans. Additionally, leveraging the credit information advantages of platform institutions, smaller banks will be guided to offer low-interest loans to individual business operators. Flexible use of relending and rediscount tools will continue to support the growth of agricultural, small and micro enterprises, and other market entities. For inclusive small and micro enterprises maintaining their existing collateral arrangements and committing to stable employment levels, loans due between June 1 and December 31, 2020, may be extended, with principal and interest repayment dates pushed back no later than March 31, 2021—and without any penalty interest charges. (Responsible Units: Shijiazhuang Central Branch of the People’s Bank of China, Hebei Bureau of Banking and Insurance Regulation, Provincial Local Financial Regulatory Bureau)

(3) Leverage the roles of insurance and guarantees. Fully utilize the province-wide agricultural credit guarantee system by uniformly reducing the guarantee fee rate—from 1.5% to 0.8%—for all new and renewed projects initiated on or after July 1, 2020. Commercial banks are encouraged to broaden the scope of eligible collateral, enabling SMEs to secure financing through movable assets and rights such as accounts receivable, production equipment, products, vehicles, ships, and intellectual property. Meanwhile, the Hebei Branch of China Export & Credit Insurance Corporation will, within controllable risk parameters, appropriately adjust short-term insurance payment terms, extend grace periods for payments or claims submissions, and explore other flexible measures. Additionally, the "Credit Insurance + Guarantee" financing model will be replicated or expanded, with commercial banks setting loan interest rates reasonably under the "Credit Insurance + Guarantee" framework. (Responsible Units: Provincial Department of Finance, Provincial Department of Commerce, Provincial Administration for Market Regulation, Provincial Department of Transport, Hebei Branch of China Export & Credit Insurance Corporation, Municipal Governments, Xiong'an New Area Administrative Committee)

2. Strengthen Factor Assurance

(1) Strengthen workforce support for businesses. By combining online and offline approaches, we will assist companies in recruiting urgently needed workers and talent, while also encouraging businesses with staffing needs to adopt "shared employment" models. By the end of June 2021, a specialized professional talent database will be established, with historical data gradually integrated to enable cross-regional online verification of professional title information for technical experts, fostering mutual recognition of qualifications across regions. For individuals facing employment challenges and college graduates who have been out of school for up to two years but remain unemployed, those who secure flexible employment opportunities—such as through the night-time economy or small-store initiatives—and successfully pay employee social insurance contributions will receive social insurance subsidies covering up to two-thirds of their actual contributions. Additionally, small, medium, and micro-sized enterprises that hire individuals struggling to find jobs, members of zero-employment households, college graduates within two years of graduation, or registered unemployed individuals, and subsequently provide on-the-job training, will be eligible for a monthly vocational training subsidy of 300 yuan per person, capped at six months. For SMEs experiencing temporary operational difficulties due to the pandemic and thus suspending work, organizations can offer employees on-the-job training instead. These enterprises will receive a monthly subsidy of 300 yuan per participant, again capped at six months, with a maximum subsidy of 50,000 yuan per enterprise during the policy implementation period. Notably, industries severely impacted by the pandemic—such as foreign trade, accommodation and catering, culture, tourism, transportation, and wholesale/retail sectors—will see expanded eligibility for subsidies, now including large enterprises. Under this extension, individual enterprises can receive up to 200,000 yuan in subsidies over the policy implementation period. The application deadline for the on-the-job training subsidy program is December 31, 2020.

(2) Enhancing the Level of Energy Resource Assurance. The "Hebei Province Coal Emergency Supply and Storage & Transportation Center Supervision and Management Measures" have been introduced, and the "Hebei Province Natural Gas Peak-Shaving and Winter-Ready Emergency Response Plan" has been refined. These initiatives strengthen emergency response measures and clarify the priority order for ensuring supply. Meanwhile, the roles of provincial and municipal-level emergency dispatch and command centers will be fully leveraged to establish a coordinated natural gas emergency assurance system that links top-down operations with seamless inter-departmental collaboration. For small and micro enterprises with installation capacities of 160 kVA or less, electricity connections will now be provided with zero on-site visits, zero approvals, and zero fees. For those meeting the criteria for direct meter installation and power connection, applications submitted today can result in power being supplied as early as tomorrow. Water and gas installation applications will be processed within 4 working days, while heating installation projects will be completed within 7 working days (excluding administrative approval processes such as external pipeline planning and construction permits, as well as design, construction, and air-tightness testing phases). For installation projects involving administrative approvals—such as planning, road excavation, tree removal, or green space occupation—water and gas utilities will take full responsibility for handling all related procedures. Approval authorities will conduct parallel reviews, ensuring completion within 10 working days (excluding the time required for project initiation and land-use approval).

(3) Strengthen land resource guarantees. For industrial projects identified by the province as priority development sectors and characterized by intensive land use, as well as those primarily focused on primary processing of agricultural, forestry, animal husbandry, and fishery products, the minimum land transfer price can be set at no less than 70% of the standard corresponding to the land’s respective grade (but must not fall below the land acquisition cost). Additionally, the lease term for industrial land will be determined flexibly based on the industry cycle, encouraging the supply of industrial land through long-term leases, lease-then-transfer arrangements, and flexible-term supply models to help reduce enterprises' land costs. Meanwhile, existing land resources and properties can be leveraged to foster new business models and formats, with temporary flexibility in maintaining current land use, ownership rights, and right types during a five-year transition period. Finally, enhance management of land allocated for industrial project construction, ensuring that land allocation aligns closely with project needs; appropriately increase land availability for industrial and logistics purposes; and promote rational conversions among different types of industrial land uses. (Responsible Units: Provincial Department of Natural Resources, governments of all cities, counties (cities, districts—hereinafter referred to as the same), and the Management Committee of Xiong'an New Area)

3. Optimize the Business Environment

(1) Continuously optimize the business entry environment. Strictly implement the "Negative List for Market Access (2020 Edition)," ensuring that "all items are listed, and no items exist outside the list." Promote the full integration of government service matters onto the province-wide integrated government service platform, aiming to achieve an online availability rate of over 95% for provincial, municipal, and county-level government services. Streamline business establishment services by leveraging the "One-Network-Handles-All" platform, enabling businesses to complete the entire process—online and within one day. Encourage local governments to offer free official seal engraving services to newly established enterprises through government procurement of services. Additionally, explore and advance the "One License per Industry" reform, consolidating multiple licenses required for entering a specific industry into a single, comprehensive permit. (Responsible Units: Provincial Development and Reform Commission, Provincial Department of Commerce, Provincial Government Service Management Office, Provincial Market Supervision Administration, all Municipal Governments, Xiong'an New Area Administrative Committee)

(II) Further easing business operation restrictions. In line with the work plan of the Ministry of Ecology and Environment, project environmental impact assessments and registrations will be exempted for 10 major categories and 30 sub-categories of industries, including those related to social services and the service sector. For 17 major categories and 44 sub-categories—covering areas such as engineering construction, social services & the service industry, and manufacturing—a streamlined approval system based on notification and commitment will be implemented. In sectors like engineering construction and government procurement, bidders will be allowed to substitute cash deposits required for business-related guarantees with alternatives such as insurance policies or letters of guarantee. Additionally, new energy vehicle contract manufacturing will be gradually liberalized, encouraging self-inspection and self-certification, with pilot programs introducing brand authorization initiatives. Approval requirements for chain convenience stores selling food—including criteria related to the size of food-handling areas—will be reasonably relaxed. Meanwhile, the process for obtaining food business licenses (limited to pre-packaged food sales) will transition from a licensing system to a simple filing procedure. Qualified food production and distribution enterprises will receive electronic versions of their licenses. For metrology instrument manufacturers meeting specific authorization criteria, a pilot program will be launched to reform the metrological verification model, allowing these companies to conduct the first mandatory verification of products before they leave the factory. Finally, the cumbersome procedures for registering off-site warehouses used by medical device distributors will be simplified. Medical device companies that already own their own warehouses will now be permitted to leverage their vacant storage spaces and idle equipment to provide warehousing and distribution services to other medical device operators. Lastly, all mandatory public notice announcements currently requiring newspaper publication will be digitized, enabling free online publication instead. (Responsible entities: Provincial Department of Ecology and Environment, Provincial Department of Housing and Urban-Rural Development, Provincial Development and Reform Commission, Provincial Government Service Management Office, Provincial Market Supervision Administration, Provincial Drug Administration, Municipal Governments, Xiong'an New Area Administrative Committee)

(3) Continuously optimize the foreign investment environment. Implement the pre-establishment national treatment plus negative list management system, accelerate the opening-up of the service sector to foreign investors, encourage foreign-funded financial institutions to operate in our province, roll out policies supporting foreign investment in the automotive industry, and promote investments in newly opened sectors. For key foreign-invested projects across the province with investments exceeding USD 100 million—spanning the early-stage planning, construction, and operational phases—we will strengthen support in areas such as access to sea and land resources, energy consumption, and environmental protection. Additionally, we will organize timely symposiums for Fortune Global 500 companies investing in Hebei, ensuring we stay updated on their business operations, production status, and latest investment trends, while helping them address any challenges or issues they may face. (Responsible Units: Provincial Department of Commerce, Provincial Development and Reform Commission, Provincial Department of Natural Resources, Provincial Department of Ecology and Environment, People’s Bank of China Shijiazhuang Central Branch, Hebei Bureau of Banking and Insurance Regulation, Hebei Bureau of Securities Regulation, Provincial Local Financial Regulatory Bureau, all Municipal Governments, Xiong'an New Area Administrative Committee)

(Four) Enhance import and export clearance efficiency. Continue to streamline the overall customs clearance time for goods, further reducing compliance costs at both import and export stages. Implement "advance declaration," encouraging businesses to complete document reviews and cargo transportation procedures ahead of time—allowing non-controlled, non-inspected goods to be released and cleared immediately upon arrival at the port. Advance integrated customs clearance reforms by rolling out the "two-step declaration" clearance model. Strictly adhere to inspection directives when conducting cargo inspections, prioritizing automated inspection methods for containerized goods subject to control measures, thereby boosting inspection effectiveness. Strengthen efforts to provide technical trade measure advisory services to exporters, helping companies expand into international markets. Actively promote imports of oils, oilseeds, meat, and dairy products to ensure stable market supply. (Responsible Unit: Shijiazhuang Customs)

(5) Support enterprises in shifting from export to domestic sales. Establish online platforms to facilitate this transition, enabling our province’s reputable and competitive foreign trade companies to set up dedicated online sales zones for their export products on major domestic e-commerce platforms. Additionally, organize and guide consumer goods exporters—ranging from food and cosmetics to mother-and-baby products, apparel, and handicrafts—to connect with provincial community group-buying platforms, regional e-commerce platforms, and supply-chain ecosystems, fostering long-term product supply partnerships. Continue launching the "CEO-Led Direct Sales" public welfare campaign, helping industrial enterprises directly market their products online and effectively match production with consumer demand. Organize events like "Export Excellence Shopping Delivered to Your Door" and "Export Products Bring Benefits to Rural Areas," boosting the domestic sales of consumer goods. Finally, select a group of large-scale department stores and supermarkets across the province to set up specialized counters or zones dedicated to foreign trade export products, offering preferential pricing and incentives to products featured in these exclusive areas. (Responsible Departments: Provincial Department of Commerce, Provincial Department of Industry and Information Technology)

(6) Supporting the Development of Comprehensive Bonded Zones. Streamline customs registration procedures for enterprises operating within comprehensive bonded zones by enabling online processing through platforms such as the market regulatory authority’s “One-Stop Licensing” system, China International Trade’s “Single Window,” or the “Internet + Customs” platform when companies apply for registration, filing, or modifications with customs authorities. Additionally, enterprises entering the zone are exempt from import tariffs and customs surcharges levied at the import stage on machinery and equipment brought in from overseas for their own use. For goods and items entering the zone that do not involve export duties, trade control documents, refund requirements, or inclusion in customs statistics—provided they remain within the zone without being re-exported—customs clearance procedures will no longer require traditional customs declarations or filing lists. Instead, these items will follow the same streamlined processes used for goods entering the zone. (Responsible Unit: Shijiazhuang Customs)

(7) Implement inclusive and prudent regulatory approaches. All administrative departments should develop and issue exemption lists for minor violations, as well as light-penalty lists, to promote "flexible law enforcement." Exercise caution when applying coercive measures, and avoid arbitrarily ordering production halts or restrictions. For new technologies, emerging industries, innovative business models, and novel market dynamics, establish and implement tailored regulatory frameworks based on their specific characteristics—strictly prohibiting both blanket bans and laissez-faire attitudes. Advance the integration of "dual random inspections with public disclosure" regulatory practices with enterprise credit risk assessment and classification, enhancing the precision and targeted nature of oversight. Streamline the process for enterprise credit restoration: applications that meet regulatory requirements will be reviewed within no more than 10 working days, and once restored, any associated joint punitive measures will be immediately lifted. Conduct performance-based tiered evaluations in key industries, implementing differentiated emergency emission reduction strategies during periods of severe pollution. Based on industry-specific emission standards and total pollutant discharge limits, accelerate upgrades and renovations of pollution control facilities. For enterprises listed on the Positive List for Ecological and Environmental Supervision and Enforcement, prioritize "non-site" inspection methods to minimize disruptions to normal production activities.

(8) Strengthen intellectual property protection. Accelerate the establishment of the China (Hebei) Intellectual Property Protection Center, enabling rapid patent examination, rights confirmation, and enforcement in key industry sectors—reducing the review cycle by more than 80%. Organize and carry out targeted enforcement actions to rigorously combat intellectual property infringement activities in accordance with the law. Establish a swift response mechanism for investigating and addressing IP-related cases, enhancing case-handling efficiency. Implement a punitive damages system for intellectual property infringements, simplifying the burden of proof for rights holders while significantly increasing compensation for cases involving source-level, repeated, malicious, or large-scale infringements. (Responsible Units: Provincial Market Supervision Administration, Provincial Court, Municipal Governments, Xiong'an New Area Administrative Committee)

4. Energize the Main Actors

(1) Supporting Enterprises to Grow Stronger and Bigger. Actively integrate into the new development paradigm characterized by a dominant domestic economic loop, complemented by both domestic and international dual loops, and implement the Action Plan aimed at enhancing the stability and competitiveness of industrial and supply chains. Accelerate the construction of various innovation platforms to continuously boost our province’s capacity for innovation and creativity. Launch targeted support initiatives for key technology-driven SMEs, helping more of them evolve into high-tech enterprises. Establish a robust tiered nurturing system—including standards and evaluation mechanisms—for "specialized, refined, distinctive, and innovative" SMEs, "Little Giant" enterprises, and manufacturing industry champions, guiding SMEs toward this specialized growth path. Encourage leading construction firms to transform and develop into full-service engineering contractors, thereby strengthening their core competitiveness. Organize "Expert Team Visits to Enterprises" focused on quality improvement in key regions, providing critical support to enhance business quality. Promote the establishment of national-level e-commerce demonstration cities, bases, and enterprises, while also fostering a group of provincial-level e-commerce demonstration bases and enterprises. Encourage businesses to participate in events like the Canton Fair and the China International Import Expo, supporting companies in expanding exports through cross-border e-commerce channels and other innovative trade pathways. Implement a three-year action plan to drive corporate restructuring, listing, and financing efforts, assisting enterprises in accessing capital markets at multiple levels. (Responsible Units: Provincial Development and Reform Commission, Provincial Department of Science and Technology, Provincial Department of Housing and Urban-Rural Development, Provincial Market Supervision Administration, Provincial Department of Commerce, Provincial Local Financial Regulatory Bureau, Hebei Securities Regulatory Bureau, Provincial Department of Industry and Information Technology)

(2) Develop new types of agricultural business entities. Support service-oriented farmer cooperatives, supply and marketing cooperatives, specialized service organizations, and other service providers to leverage their unique strengths in delivering agricultural production management services, thereby facilitating the seamless integration of smallholder farmers with modern agriculture. Cultivate a group of innovative and entrepreneurial communities deeply rooted in rural areas, dedicated to serving agriculture and empowering farmers. Encourage local rural talent, migrant workers eager to start businesses, college and university graduates, as well as science and technology professionals, to legally establish family farms and farmer cooperatives, guiding these family farms to transition from traditional to modern agricultural practices. Expand coverage of insurance programs for advantageous and specialty agricultural products, and encourage cities and counties to tailor agricultural insurance initiatives to their specific regional needs. Additionally, provincial finance will provide incentives—ranging from 30% to 50%—to support city- and county-level financial subsidies for insurance premiums. (Responsible Units: Provincial Department of Agriculture and Rural Affairs, Provincial Department of Finance, City and County Governments, Xiong'an New Area Administration Committee)

(3) Supporting the Development of Individual Businesses. On the premise of strictly fulfilling epidemic prevention and control measures as well as environmental sanitation responsibilities, reasonably designate operating areas for mobile vendors, convenience-based business locations, community markets, and traditional trade markets. Encourage the use of roadside spaces, street corners, and open areas within residential communities to set up temporary stalls. For legally conducted stall-based operations—such as selling agricultural and sideline products, daily necessities, or providing convenient services using personal skills that do not require a license—business licenses are not mandatory. Additionally, relevant government departments will waive or reduce associated fees. Entrepreneurs conducting business through online platforms may register their individual businesses directly via these digital marketplaces. E-commerce platforms are encouraged to ease entry requirements for individual businesses and micro-enterprises, while also lowering platform service fees and transaction charges for services like barcode payments and online payments. Furthermore, individual businesses looking to transform and upgrade into formal enterprises can simultaneously handle both the deregistration of their existing individual businesses and the establishment of a new enterprise. Provided it complies with regulations on enterprise naming, they may retain their original business names. Finally, when transferring ownership of land or property, eligible transactions will be exempt from stamp duty in accordance with national tax policies. (Responsible Units: Provincial Market Supervision Administration, Provincial Department of Housing and Urban-Rural Development, Provincial Department of Commerce, Provincial Department of Finance, Provincial Tax Bureau, Municipal Governments, Xiong'an New Area Administrative Committee)

5. Supporting Enterprise Development

(1) Protect the rights and interests of businesses and entrepreneurs. Enhance the efficiency of trials and enforcement processes to prevent litigation delays from disrupting business operations and production. Strictly adhere to the law when applying detention-based coercive measures, as well as measures such as seizure, impoundment, and freezing—ensuring that seizures do not exceed legal limits, scope, or duration. Rigorously distinguish between illegally obtained assets, other case-related properties, and legitimate holdings under the law. Similarly, clearly separate corporate entity assets from shareholders' personal wealth, and strictly differentiate between the personal property of individuals involved in a case and the assets of their family members. Pursue legal penalties for any illegal activities that infringe upon the legitimate rights and interests of businesses, promptly identifying and rectifying wrongful cases involving violations of enterprises' and entrepreneurs' personal and property rights. Additionally, refine the grace period system for publicizing dishonesty records, temporarily withholding the release of information on defaulters or those subject to consumption restrictions for eligible parties during this period. Finally, rigorously enforce the "Regulations on Guaranteeing Payment to Small and Medium-Sized Enterprises," addressing payment delays at their root cause. Intensify efforts across government departments and state-owned enterprises to clear outstanding debts owed to private firms and SMEs, aiming to eliminate all unresolved disputes by the end of September 2020. (Responsible Units: Provincial Court, Provincial Department of Industry and Information Technology, Provincial Department of Finance, Provincial State-owned Assets Supervision and Administration Commission)

(2) Strengthen legal service support. Establish a public legal service mechanism tailored to the new normal of COVID-19 prevention and control, prioritizing methods such as phone appointments for applying to handle notarization, legal aid, and other legal services. Provide timely guidance and advice to market entities in need on key legal issues, including exemptions from liability due to force majeure. Additionally, promptly mobilize professional legal service providers—such as lawyers, notaries, and mediators—to offer expert consultation, guidance, and mediation services addressing contract enforcement challenges and labor-management disputes arising from the pandemic's impact on market entities. (Responsible Unit: Provincial Department of Justice)

(3) Enhance the mechanism for government-enterprise engagement. Deeply implement the "Three Guarantees, Four Supports, Six Safeguards, and Five Measures in Place" initiative, ensuring that leading officials at all levels fulfill their responsibilities for direct contact with businesses. Regularly conduct on-site inspections or field office visits to proactively provide support to various enterprises and individual business operators. Leaders at all levels should maintain transparent and upright interactions with market entities, fostering a genuine, trustworthy, clean, and mutually beneficial relationship between government and business—characterized by openness, integrity, and positive collaboration. Promote the "automatic access" policy for business-friendly measures, leveraging information sharing among government departments to enable eligible enterprises to directly benefit from policies without the need for application. Strengthen mechanisms that allow entrepreneurs to actively participate in shaping business-related policies, seeking their input proactively before major economic decisions are finalized. Additionally, fully leverage the role of various social organizations and industry associations as vital bridges connecting government and businesses. Through initiatives such as safeguarding business rights, public awareness campaigns, training programs, trade and economic exchanges, assistance for businesses facing challenges, and community outreach activities, these organizations will help alleviate difficulties faced by market entities.

The above measures will take effect from the date of their issuance. Meanwhile, all previously issued relevant policies and initiatives by various departments will remain in force. In cases where these new measures conflict with existing ones, the provisions of these measures shall prevail. All departments at every level are urged to fulfill their duties diligently, collaborate effectively, and work together to ensure robust implementation. Throughout the process, closely monitor outcomes, stay firmly focused on identified issues, and promptly address any shortcomings or gaps. At the same time, we must firmly reject formalism and bureaucratic inefficiency—those failing to act, moving too slowly, seeking loopholes, or neglecting to follow through will face serious accountability and consequences.