80% Shanghai High-end Talents Gathering in Zhangjiang, Demanding to Integrate Different Talents and Property Management Models
More than 80% high-end talents in Shanghai gather in Zhangjiang demonstration zone. Every 1 in 3 state-approved classⅠnew drugs are from Zhangjiang, where the IC industry accounted for two-thirds of the national market, where there are nearly 70 000 science and technology enterprises, 1,400+ research institutions, 300+ public service platforms, and 44 colleges and universities. It boasts more than 1 / 3 of Fortune 500 companies in China, and R & D centers and regional headquarters of 700+ multinational companies. With a total of 193,000 intellectual properties, it has become an area with China’s most intensive innovative resources, playing a significant role in gathering, demonstration, leading and radiation.
However, due to the lack of relevant laws and regulations, many reform measures that would benefit the park and enterprises are trapped, and government regulations that support the development of park and enterprises lack long-term legal effectiveness. Innovative elements and resources are still awaiting breakthrough to achieve aggregation.
And this phenomenon is expected to change. It is understood that the legislation of Zhangjiang demonstration zone has been included in the 2016 Municipal People's Congress legislative preparatory projects. To better understand the legislation progress of Zhangjiang National Independent Innovation Demonstration Zone Ordinance (draft), specialized staff of Shanghai People’s Congress recently went to Zhangjiang national independent innovation demonstration zone for research.
It is reported that, Zhangjiang National Independent Innovation Demonstration Zone Ordinance (draft) has been revised 30 times since 2013.
What problems should this legislation solve, and what relationships should it clarify? Participants believe that in addition to the relationship between creation of terms and the institutional integrity, the relationship between the longitudinal segmentation and transverse integration should also be balanced.
Currently, Zhangjiang Hi-tech Zone has a total of 22 parks, involving 16 districts and counties. The personnel, financial, and property rights of these parks are in districts and counties, and these parks are in various shapes and different management models. “It is critical to play their own characteristics, avoid similar industrial structure, achieve resource integration, and form innovative force.”
Many delegates mentioned that the policy of FTA superposed with the National Independent Innovation Demonstration Zone is a unique advantage for Zhangjiang to promote various institutional innovations. However, Zhangjiang also encounters a number of bottlenecks in the system. Conflicts with existing laws, regulations and operating procedures result in a number of difficulties in pilot advance.
For example, at present, import machinery, equipment, materials of enterprises in special regulatory area can enjoy tax policy. But the FTA after expanding has no physical fence, so that custom supervision becomes more difficult. As a result, enterprises can not enjoy the bonded policy in special regulatory area. Therefore, bonded R & D model like Wuxi Parma cannot be copied to the Zhangjiang FTA after expanding.
They suggested that the custom should adjust the current regulatory system, and adopt electronic fence to provide pilot enterprises that meet the requirements with system conveniences in special regulatory area.
Others spoke of clearance concerning special biomedical materials. In accordance with Article 37 of the 2006 published AIDS Prevention Act, “imported human blood, plasma, tissues, organs, cells, bone marrow, etc., shall accept quarantine by inspection and quarantine institutions in accordance with the relevant provisions of the frontier health and quarantine laws and administrative regulations. Those without quarantine or unqualified may not be imported. "
However, according to Special Entry-exit Items Quarantine Regulations, the Ministry of Health no longer approves special items that biomedical companies apply for entry.
“There is a conflict between these laws and regulations, causing special items of biomedical enterprises unable to enter. Even under the coordination of relevant authorities in Shanghai and with provisional measures, there is still no legal basis.” Relevant people suggested further improving the relevant laws and regulations, clarifying the approval functions and the division of responsibilities in importing special biomedical items.
“IC bonded has been piloted for many years, yet there has been no major breakthrough”. Some representatives mentioned the one major reason is that the existing pilot design enterprises refer to the processing mode, using processing and trade manual to carry out the bonded. This makes the management complicated; the second reason is pilot business are limited in range, limited to the foreign business of design enterprises. This mode cannot be used for design, manufacturing, packaging and testing enterprises that are meanwhile carrying out overseas operations. “Seen from the current research results, it is difficult to promote bonded supervision mode in the whole industry chain. It is recommended to implement preferential tax policy for the IC industry."
He also suggested the customs and tax departments to adopt flexible bonded mode, drawing on the Taiwan model. Enterprises can flexibly choose bonded zones, bonded warehouses, bonded factories, and bonded account book; and design enterprises can use bonded account books of processing enterprises and other means.
According to Commercial Bank Law Article III, the scope of business operations of commercial banks does not include investment business, and mixed operation is not allowed, so commercial banks are not able to carry out investment and lending operations simultaneously. Since the SME has a higher business risk, if commercial banks cannot get a higher return from investment business to compensate for possible risks in loans, the small business financing problem cannot be solved fundamentally.
At present, the China Banking Regulatory Commission is promoting the linkage of investment and loans. In fact, it is to carry out the linkage of investment and loans among different accounting subjects of banks, which cannot really solve the problem of coordinating risks and benefits of the accounting subjects of banks. Therefore, it was suggested that the national authorities should allow pilot establishment of technology banks that actually realize linkage of investment and loans.
“This legislation should properly handle the relations between central powers and local authority.” According to the participants, the creation of provisions aim at designing terms that observe technological innovation rules, and break through the core issues of innovation and entrepreneurship development. Also, it is designed for practical implementation of the reforms, including major issues like tax issues, state-owned investment and so on. These reform initiatives are likely to reach central powers or host law. “It is a trial for the wisdom of the legislator to balance and handle this contradiction.”