Beijing to Attract Multinational Firms     

Recently several departments of the Beijing municipal government jointly published the Implementing Measure for Several Provisions on Encouraging Multinational Companies to Establish Regional Headquarters in Beijing. The measure promises the multinational firms that open its regional headquarter in Beijing can be awarded up to RMB10 million.   
    At present, among the around 16 000 foreign funded companies approved by the Beijing municipal government, 164 are equivalent to regional headquarters of multinational firms, the majority of which are listed among the global top 500 firms. 41 of the 164 firms have been officially identified as regional headquarters. According to the 2008 data, the 164 firms regionally headquartered in Beijing contributed to 23% of sales revenue in the total contributed by all foreign funded companies, 32% in the total net profit, and 22% in the total tax.
    From January to May this year, Beijing has absorbed US$4.05 billion of foreign investment, with year on year increase of 3.1%, and actually used US$2.95 billion, up 4.1%.
    This Measure regulates the identification requirements in details for the regional headquarter. The regional headquarter established by multinationals in Beijing shall meet the requirements that its parent company shall own a total asset of no less than US$400 million, and has in fact paid a total registered capital of no less than US$10 million in China.
   According to this Measure, the qualified regional headquarters that newly set up headquarter in Beijing or remove their headquarters here will enjoy extremely attractive preferential policies, maybe funding supports, from the Beijing municipal government. A subsidy in line with these preferential policies can reach up to RMB10 million. the qualified will get 30% of subsidy for the first year when renting office in Beijing, and will be award a subsidy of RMB1 000 per square meter if buying or constructing office house. The regional headquarter with an annual operating revenue of more than RMB1 billion will be rewarded with a premium up to RMB10 million. And preferential conditions are also involved in living conditions to the management.