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Beijing Further Encourages the Establishment of Foreign-Funded R&D Centers

Beijing further encourages the establishment of foreign-funded R&D centers in accordance with the requirements of the "Circular of the General Office of the State Council Forwarding the Several Measures of the Ministry of Commerce and the Ministry of Science and Technology to Further Encourage the Establishment of Foreign-funded R&D Centers" (State Council Letter [2023] No. 7). The aim is to support the concentration and development of foreign-funded R&D centers in the city, promote a double increase in the quantity and level of these centers, enhance connectivity with global innovation resources, facilitate cross-border flow of innovation elements, accelerate the construction of an internationally competitive open innovation ecosystem, and provide support for the construction of Beijing as an international science and technology innovation center. To support this policy, the General Office of the State Council has issued several measures.

In July 2023, the results of the third batch of recognition for Beijing's foreign-funded R&D centers were announced, and the number of foreign-funded R&D centers established in Beijing increased to 73.

Policy Content

Foreign-funded R&D centers play an important role in the scientific and technological innovation and development system. They have contributed significantly in areas such as introducing cutting-edge technology and high-end talents, expanding international scientific and technological exchanges and cooperation, and improving the overall efficiency of regional scientific and technological innovation. The "Several Measures for Further Supporting the Development of Foreign-funded R&D Centers in Beijing (Draft for Soliciting Opinions)" adheres to the concepts of "serving existing entities and attracting new ones," "internal and external linkage, mutual benefit," and "comprehensive service and precise guarantee." It puts forward 16 support measures from the aspects of aggregating high-level entities, promoting high-level scientific and technological innovation, enhancing R&D facilitation, strengthening all-round element guarantees, and strengthening the guarantee system.

The first part supports the upgrading and expansion of foreign-funded R&D centers. For well-known multinational companies and international top research institutions that establish foreign-funded R&D centers in Beijing for the first time, they will receive financial support of up to 50 million yuan; for those upgrading to regional or global R&D centers, they will receive financial support of up to 20 million yuan; and for major high-quality projects landed by foreign-funded R&D centers in Beijing, they will receive support through "one project, one negotiation" approach.

The second part supports foreign-funded R&D centers in conducting high-level scientific and technological innovation. First, by means of tax reductions, research and development incentives, equipment subsidies, etc., foreign-funded R&D centers are encouraged to increase their research and development investment. Second, they are encouraged to establish innovation service platforms, undertake various natural fund projects and scientific and technological projects organized by the government, and deeply integrate into the city's innovation system. Third, foreign-funded R&D centers are encouraged to carry out high-value patent layouts and establish standards. Fourth, they are encouraged to build innovative cooperative relationships, set up innovation funds or technology commercialization funds, launch and exhibit cutting-edge scientific and technological achievements, and drive local innovative entities to integrate into the global innovation network.

The third part is to improve the facilitation level of R&D for foreign-funded R&D centers. First, it proposes to provide open access to research infrastructure and secure services for accessing international academic websites. Second, it strengthens the guarantee of customs clearance for scientific research materials, establishes an "import whitelist," and optimizes the entry-exit inspection and quarantine procedures. Third, it promotes measures related to optimizing supervision and simplifying procedures for the orderly cross-border flow of research data, creating a more suitable international environment for the innovative development of foreign-funded enterprises.

The fourth part is to strengthen all-round element guarantees for foreign-funded R&D centers, including talent, space, and financial guarantees, with a total of 5 measures. First, it conducts special talent introduction and optimizes work permit processing. Second, it supports mutual recognition and rewards of talent qualifications. Third, it optimizes the facilitation of talent clearance services. Fourth, it tailors space guarantee plans for the incremental and expansion projects and technology commercialization projects of foreign-funded R&D centers. Fifth, it incorporates foreign-funded R&D centers into the city's financial service platform to provide financial support for their scientific and technological innovation and basic and frontier research.

The fifth part is to strengthen the guarantee system. First, it strengthens overall coordination by setting up a municipal-level working group and including all foreign-funded R&D centers in the municipal-level "service package" system. Second, it promotes the implementation of policies, optimizes management and services, and ensures that relevant measures are implemented and enjoyed quickly.

Status of R&D Center Recognition

In July 2022, the first batch of 29 R&D centers successfully passed recognition, with nearly 70% concentrated in industries such as information technology, pharmaceuticals and health, and artificial intelligence, and these enterprises' total R&D revenue in 2021 exceeded 2 billion yuan. Subsequently, in February 2023, the second batch of 20 R&D centers also completed the recognition, with nearly 70% concentrated in software and information services, energy conservation and environmental protection, artificial intelligence, and other fields, with their total R&D investment in 2022 reaching as high as 8.9 billion yuan. In July 2023, the third batch of 24 R&D centers completed recognition, bringing the number of foreign-funded R&D centers established in Beijing to 73.

According to the company registration information, the distribution of these R&D centers shows that they are located in eight administrative regions of Beijing, including Haidian (16), Chaoyang (9), Economic-Technological Development Area (7), Shunyi (6), Changping (4), Shijingshan (3), Daxing (2), and Huairou (2). Among them, Haidian has the most R&D centers, with nearly one-third of them located there, followed by Chaoyang.

The Economic-Technological Development Area has a total of 7 R&D centers, including AstraZeneca Pharmaceutical (Beijing) Co., Ltd., Beijing XiaoMaYiXing Technology Co., Ltd., Varian Medical Trading (Beijing) Co., Ltd., Phoenix Bridge Holdings (Beijing) Co., Ltd., Beijing Dentsu Holdings Group Co., Ltd., Li Ning (China) Sports Goods Co., Ltd., and Xinnuopu Medical Technology (Beijing) Co., Ltd.

Shunyi District has 6 R&D centers, including Airbus (Beijing) Engineering Technology Center Co., Ltd., Veolia (China) Pump System Co., Ltd., Beijing Rockwills Technology Co., Ltd., Merck Serono Ltd., Beijing Procter & Gamble Technology Co., Ltd., and Svedala Machinery (Beijing) Co., Ltd.

Changping District has 4 R&D centers, including Beijing Novartis Pharma Technology Co., Ltd., Bona Pharma (Beijing) Co., Ltd., Beijing Noach Gene Technology Co., Ltd., and Vitaeris (Beijing) Biotechnology Co., Ltd.

The layout of foreign-funded R&D centers shows strong industrial relevance and agglomeration effects. For example, all 4 foreign-funded R&D centers in Changping District focus on the life science field and are concentrated near the Changping District Life Science Park. At the same time, Huairou District has two foreign-funded R&D centers, namely Beijing Foton Daimler Automotive Co., Ltd. and Mars Food (China) Co., Ltd., highlighting the increasing density and importance of scientific research in Huairou District. It is understood that Huairou Science City has become the region with the most complete layout of national strategic scientific and technological forces, attracting a rapid aggregation of national-level facilities, research institutions, universities, and technology-leading enterprises. A typical example is the Beijing Science Building Huairou International Science and Innovation Center, which has gathered important enterprises such as Guoke Sci-tech, State Grid, Yun Chuangyuan Technology, MIG Laboratory, and Beijing Hang'an Kechuang Technology, forming a high-end instrument industry ecosystem.

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