I. NATURE AND PURPOSES
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 Ministry 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 potential of China’s scientific and
technological forces, take market for orientation, promote
the commercialization of new/high tech achievements,
industrialization of new/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
regulations for the development 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 channels and establish
information networks; and formulate medium to long term
plans and implementation plans conforming to
realities.
2. Establish New/high tecn
Industrial
Development Zones and Pioneering Service
Centres.
The establishment and development of new/high
tech industrial development zones are an important component
of the Torch Plrogramme and an inevitable outcome of reform,
opening to the outside world and the social development of
the socialist market economy .The new/high tech industrial
development zones are based on intensive intelligence and
open environment and mainly depend on China's own scientific
and technological and economic strength. They are
concentrated zones established for purposes of transforming
achievements of science and technology into practical
productive force to the maximum extent through local
optimization of soft and hard environments, orienting to
both domestic and overseas markets and developing China's
new/high tech industries.
The new/high tech industrial
development zones have the following seven
functions;
(1) Bases for the development of new/high
technologies;
(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 science and
technology with economy, and promotion of transformation of
achievements of science and technology 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 technological 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 policies of the state and the
necessary conditions provided by the governments at various
levels to create locally optimized environments, bring up
new stating points of economic growth for the development of
new/high technologies ,promote commercialization of
achievements of new /high technologies so as so
"hatch" new/high tech enterprises, and provide
comprehensive services for the establishment of new/high
tech enterprises
The new/high tech pioneering service
centres are an important link in transformation of new/high
tech industries, a starting point between laboratories and
enterprises, a school for bringing up scientific and
technological industrialists, links connecting the
development zones and institutions of higher education and
large and medium enterprise, and an important component 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, functioning as the
starting point and basis of the programme.
The
projects 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,
achievements 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/high tech
enterprises and enterprise 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 Torch 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 technological, financial,
enterprise and commercial sectors in foreign countries
through governmental or non-governmental channels, on the
basis of equality and mutual benefit, so as to help China's
new/high tech products enter international markets and
promote the development to new/high tech industries towards
internationalization.
5.
Traning
Training and attracting talents are one of the
key factors for the development of mew/high tech industries,
and is the basic guarantee for the achievement of
commercialization, industrialization and
internationalization of new/high tech products, To ghfoster
a great number of talents of scientific and technological
management 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 Development
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/high-tech industries with clear-cut
features of new/high-tech industries, advanced managerial
system, flexible operational mechanism, complete sets of
policies, laws and regulations, perfect supporting 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 tech
industries, effectively promote rational adjustment of
industrial structures 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 technologies,
emphatically promote the technical and managerial levels of
a number of township enterprises that already have necessary
conditions; and emphatically support a batch of private
science and technology enterprises and new/high tech
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 transformation of new/high tech products to
commercial 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. Expected
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 SUPPORTIVE
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 implemented 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, institution 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 governments, 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 responsible 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 national level projects of
the Torch Programme, 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.