I.
NATURE AND PLURPOSES
The Torch Programme is a
guidance programme for developing new/high tech industries
in China, It was approved by the State Council and is
implemented by the Minsitry of Science and Technology. The
purposes of the programme are to Technology.The purposes of
the programme are to implement the strategy "Promote
the development of the country with science and
education", carry out the general policy of reform and
opening to the outside world, bring into full play the
advantages and potenitial of Chnia's scientific and
tecnnological forces, take market for orientation, promote
the commercialization of new/hige tech achievements,
industrialization of nnew/high tech good and
internationalization of new/high tech
industries.
II THE MAIN
CONTENTS
I. Create a Proper
Environment for the Development of New/high tech Industries
Widely carry out advocating campaign for the
Torch Programme formulate complete sets of policies, laws
and reegulations for the develomet of new/high tech
industries; create sound supporting environment and
establish the managerial system and operational mechanism
fit for the development of new/high tech industries; open up
financing sources and build up risk investment mechanism ;
open up domestic and overseas information chanesl and
establish information networks; and formulate medium to long
term oplans and implementation plans conforming to
realities.
2. Establish New/high tecn
Industrial
Development Zones and Pioneering
Service Centres.
The establishment and
developlment of new/high tech industrial development zones
are an improtan component of the Torch Plrogramme and an
inevitable outcome of reform, opening to the outside world
and thd social development of the socialist market economy
.The new/high tech industrial development zones are based on
intensive intellingence and open envionment and mainly
depent on China's own scientific and technological and
economic strengty. They are concentrated zones estabilshed
for pruposes of trasforming achievements of sicenc and
technolgy into pracical produtive force to the maximum
extent throuhg local optimization of soft and hard
environments, orienting to both domestic and overseas
markets and developing China's new/high tech in
dustries.
The new/high tech industrial
development zones have the following seven
functions;
(1) Bases for the development of
new/high tech nologies;
(2) Sources of new/high
technologies and products for traditional
industries;
(3) Windows opening to the outside
world;
(4) Experimental zones for close
combination of science and technology with economy, and
promotion of transformation of achievements of science and
technology and technical innovation;
(5)
Demonstrative zones for close combination of sceence and
technology with economy, and promotion of transformation of
achievements of science and technolgy and technical
innovation;
(6) New urban areas of socialist
modern civilization ;
(7) Schools for training
and bringing up high technology
industrialist.
The new high/new tech pioneering
service centres are a new type of scientific and
tecnnological service agencies of public good type,
established by consulting the successful experiences of
foreign countries in the development of "hatcher"
and considering the conditions of China, Their purposes are
to depend on the related polecies of the state and the
necessary conditions provided by the governmnts at various
levels to create locally optimized environeents, bring up
new stating points of economic growth for the development of
new/high technologies ,promote comerialization of
achievements of new /high technologies so as so
"hatch" new/high tech enterprises, and provide
comprehensive services for the establishment of new/higeh
tech enterprises
The new/high tech pioeering
service centres are an importan link in transformation of
new/high tech industries, a starting point between
laboratories and enterprises, a schoool for bringing up
scientific and technological industrilists, links connecting
the develoment zones and institutions of higher education
and large and medium enterprise, and an impoortant
comlponetn of the supporting service systems for the
development of new/high tech industries
3.
Projects
The projects of the Torch Programme
are an important component of the programme, funcioning as
the starting point and basis of the
programme.
The projecst of the Torch Programme
are high technology projects oriented to domestic and
overseas markets, based on the key research programmes of
the state, localities and sectors, achievments of programmes
for the research and development of new/high technologies
and other research achievements, aimed dustries, selected
and good economic benefits, Through the implementation of
the programme new/higt tech enterprises and entrprise groups
will be brought up.
The key fields of
development of the Torch Programme include: new materials,
biological engineering, electronics and information, opto
mechano electronics integration, new energies, high energy,
efficiency, energy saving and environmental
protection.
4. Internationalization of New/high
tech Industries
Enhancing international
cooperation and promoting the internationalization of
China's new/high tech industries is one of the Torach
Programme's major tasks. The approach to the
internationalization is to establish wide cooperative
relation with various countries and regions and enter into
various forms of and tecnhnogical, financial, enterprise and
comnmercial sectors in foreign countries through
governmental or noo governmental channels, on the baisi of
equality and mutual benefit, so as to help China's new/high
tech products enter international markets and promote the
devlpment to new/high tech in dustries towards
internationalizatin.
5.
Traning
Trainaing and attracting talents are
one of the key factors for the dvevlopment of mew/high tech
industries, and is the basic guarantee for the achivevment
of commencialzation, industrialization and
internationalization of new/high tecn products, To ghfoster
a great number of talents of scientific and technolgical
mangement and scientific and technological industries, who
have mastery of technologies, are good at management,
business handling,and innovation, and innovation, and meet
the challenge of market competition, is a key task of the
Torch Programme.
III. THE MAIN OBJECTIVES FOR
YEAR 2000
1. The Objectives of Cevelopment
2. (1)Carry out construction and development
of the new/high-tech industrial development zones to form a
batch of bases for the development of new/hightech
industries with clear-cut features of new/high-tech
industries, adbanced managerial system, flexible operational
mechanism, complete sets of policies, laws and regulations,
perfect suppporting service systems and graceful
environment.
(2) Through the implementation of
the projects of the Torch Programme, bring up a number of
new a and developing mainstay new/high tecn industries,
effectively promote rational adjustment of industrial
strctures and promote the national productivity
greatly.
(3) Through the implementation of the
key projects of the programme, emphatically develop a number
of new/high tech enterprises with modernize enterprise
systems and famous brand products; emphatically bring up a
batch of large and medium demonstrative enterprises for the
reform of traditional industries with new/high techologies,
emphatcally promote the technical and managerial levels of a
number of townshipenterprises that already have necessary
conditions; and emphatically support a batch of private
science and technolgoy enterprises and new/high tecn
industries to expand scale.
(5) Carry out all
directions and whole process "hatching" service
for medium and small science and technology enterprises
through the new/high tech pioneering service centres,
promote the transfromation of new/high tech products to
commerical goods and transformation of the products, and
continuously provide new starting points for the sustainable
development of new/high tech industries.
(6)
Through the implementation of the programme, foster a great
number of talents of the development, operation and
management of new/high tech industries, who have mastery of
technology, are good at management, business handling and
innovation, and meet the challenge of market
competition.
3. Expectde
Outcomes
(1) Through the implementation of the
Torch Programme, realize a total annual income of 600
billion yuan from technological development, industrial
production and trade, in which 500 billion yuan will come
form the sale of new/high tech products.
(2)
Through the construction and development of the new/high
tech industrial development zones, realize a total annual
income of 500 billion yuan form technological development,
industrial production and trade, in which industrial output
will occupy 400 billion yuan.
(3) Through the
implementation of the programme, realize a total annual
income of 300 billion yuan form sale, The national level
projects will total 3, 00 and the local level ones 9,
000.
(4) Through the implementation of projects
and key projects of the programme and the construction and
development of the new /high tech industrial development
zones foster and confirm 30, 000 new/high tech enterprises
of all kinds.
(5) Through the implementation of
the programme, bring up 500.00 talents for development,
operation and management of new/high tech
industries.
IV THE MAIN SUPPORTIVG CONDITIONS
AND MEASURES
The implementation of the Torch
Programme is domestic and overseas market oriented, adopts
multiple methods to raise funds, including bank loans, self
financing, absorbing social and foreign funds, etc., with
the support of the state and local preferential policies,
guide and promote the commercialization, industrialization
and internalization of the achievements of China's new/high
technologies
1. Policies
(1) If an
enterprise in the development zone is confirmed as new/high
tech enterprise the income tax will be collected at the
reduced rate of 15% since the date of
confirmation.
(2) If the output value of export
products of a confirmed new/high tech enterprise in the
development zone accounts for more than 70% of the total
output value in the same year, the income tax will be
collected at the reduced rate of 10% after checked by the
tax authority.
(3) A confirmed newly opened new
/high tech enterprise in the development zone can be
exempted form income tax within the wto years since the year
when it is put into production after an exemption
application is made by the enterprise and approved by the
tax authority
2. Financing
Sources
(1) The projects of the programme can
use the special loan for scientific and technological
development.
(2) The projects of the programme
have priority in getting financial support form the New
Product Programme.
(3) The projects, of the
programme can get financial support from the Chinese Torch
Foundation and the Chinese Scientific and Technological
Development Foundation.
(4) The new/high tech
industrial development zone can use the special construction
loan.
V MANAGEMENT
Two level
management is implementde for the projects of the Torch
Programme, The office of Torch Programme of Ministry of
science and Technology is responsible for the organization,
confirmation, institution and tracing management of the
national level lprojects and the local science and
technology commissions are responsible for the orbanization,
confirmation, instiution and tracing management of the local
projects, The management commissions of the national level
new/high tech industrial development zones are responsible
for the organization and management of the development
zones, under the Ieadership and support of local govenments,
receiving the guidance of corresponding local science and
technology commission for professional matters, and the
Office of Torch Programme of the Ministry of Science and
Technology is responible for the overall
management.
1. Management
Organizations
The Ministry of Science and
Technology
Office of Torch
Programme
Division of
Planning
Division of Information and
Investigation
Division of Management of
New/high tech Industrial Development
Zones
Division of Propaganda and
Education
Division of Project
Management
Division of Computer
Software
Division of International
Development
2. Functions of the Office of Torch
Programme
(1) Formulate the general and
specific policies and plans for the implementation of the
Torcn Programme in cooperation with reslated departments and
agencies.
(2) Raise funds for the Torch
Programme, determine the scheme for the fuse of funds and
monitor the use of funds.
(3) Take charge of
the confirmation, institution and management of the mational
level lprojects of the Torch lProgramme, and the selection,
tracing and examination and acceptance of the key projects
of the programme.
(4) Take charge of the
overall management of the national new/high tech industrial
development zones and new/high tech pioneering service
centres.
(5) Take charge of the overall
management of propaganda, training, statistics, consultation
and information and communication networks.
(6)
Take charge of the overall management of the Chinese
Association of New/high tech Industrial
Development.
(7) Take charge of international
exchange and cooperation soliciting merchants and investors,
and opening up international markets.
(8)
Promote the development of computer software
industry.
(9) Take charge of the confirmation
and supervision of new/high tech
enterprises.
(10) Take charge of the contact
with private new/high tech enterprises.
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