BN
Negotiation Guide
①Taxation
Position: between discount 90%, 5 years and discount 80%, 7 years. Deadline: 2 years exemption on city taxes, about 6 years discount 85%-87% (other infrastructure, including land, power, rental)
Initial offer: 2 years exemption on city taxes, about 5 years discount 90%, 2 years 80%.
Reasons:
1. equitability of taxes (在华外商投资企业(foreign-owned enterprises)的名义税负是15%，但实际税负是11%.而内资企业目前的名义税负是33%，实际税负是23%左右。无论是名义税率还是实际税率，内资企业(domestic enterprise)的税负都是外资企业的一倍。) We should create a fair business environment for those enterprises in our city.
2. preferential policy:包括：土地价格核算以成本价计(cost)，不以盈利为目标；通过先征后返、地方财政贴现办法，对国家规定的鼓励类外商投资项目、高新技术与高出口创汇项目，可分别延长企业所得税期限两至三年。其中：总投资在1000万美元以上（含1000万美元）的新办生产性外商投资企业，延长三年免征所得税；总投资在500万美元（含500万美元）至1000万美元的新办企业，延长二年免征所得税；著名跨国公司高新技术企业集团公司联合投资，土地价格优惠10%以上。特殊企业所需土地或厂房可通过分期付款、厂房以租代买等方式取得，并取消40多项项目收费，降低外商投资企业的初始成本。
3.We can use one new policy: 中国国务院法制办近日刊登的外商投资产业指导目录(修订征求意见稿)显示,中国突出了对外商进入战略性新兴产业的支持,不过汽车整车制造已从外商投资鼓励类项目中移出. (If they want to get these privileges, they have to be hi-tech company. This requires the transfer of technology.)
② Further investment (45million in 7 years)
Reasons: big market
1. Since China market acts as an important part of the world economy, recovery of the world's economy will put forward China's important and export, exert a stimulating effect on Chinese logistics market, and be bound to give an impetus to the development of commercial vehicle and other related industries, especially for trunk industry.
2. The demand for high-end trucks in Chinese market will shoot up. In 2010, Chinese truck production was 3,92 million with a 28.19 increase year-on-year percentage, and truck sales volume reached
3.86 million, rising by 29.90% year-on-year percentage.
③ Personnel training & management
Providing personnel training and advanced management concept. Reasons:
1. This is part of the reasons for our inviting investments from overseas;
2. It is necessary for improving your efficiency. It can train more skilled workers, and make your products more competitive in the market.
3. Volvo, Benz have already expanded into Chinese market, if you want to compete with them, you need more excellent local managers in China.
4. It is a mutually beneficial movement.
④ Related industry & transfer of technology
You have to persuade your suppliers to set branches in our city. You also have to provide us with your advanced technology, such as the technology of manufacturing technology.
Reasons:
1. This is the requirement of our country's policy. (中国国务院法制办近日刊登的外商投资产业指导目录(修订征求意见稿)显示,中国突出了对外商进入战略性新兴产业的支持,不过汽车整车制造已从外商投资鼓励类项目中移出.)
2. This can help reduce your cost and make your product competitive in price;
⑤ Land, rental & power
We can give your favor in the rental of land in accordance with the policy.
We can also give priority to you in the supply of power and the construction of infrastructure in the areas near your factory.
Group members: 费宇杰王巍巍樊杨柳李珍闫韵冰
Comprehensive Opening Statement We, delegates from PK city, have reached an agreement with you through 2 years’ negotiation. We have agreed to offer you many privileges, including a 2 year exemption on city taxes, and taxes to be discounted for 5 years to 90%.
However, something unexpected resulted in crevice between us.
We should have been willing to take responsibility for our oral statement, but you are reluctant to show us the evidence. What’s more, neither of us can convince the counterpart whether there is an oral statement existing or not.
In view of this, we propose that we just put this accident aside and restart our meeting based on the written agreement.
We come here with great sincerity and desire to reach an agreement with you. We also believe in your sincerity and your desire to enter into our market.
We hope that after this meeting we can not only reach a mutually beneficial agreement, but most importantly we can establish a friendly corporation relationship which can benefit both of us in the long run.
Meeting Agenda
Project name: Set up a truck assembly plant in PK city
Purpose, Objectives and Elements of the Meeting: An improved offer Place:HQ of Idelux Motors, Nagoya Date: 17th July, 2010 Attendance: ·Fei Yujie(the Mayor of PK City)
·Representatives from Indelux Motors
·Yan Yunbing(PK City Treasurer)
·Three representatives from PK City representatives office
Issue Time
①COS 5 mins
②The taxation policy 15 mins
③Further investment 10 mins
④Personnel training & management 5 mins
⑤Related industry & transfer of technology 5 mins
⑥Land, rental and power 5 mins
⑦Purchase in local market 5 mins
List of Attachments:
Group members: 费宇杰王巍巍樊杨柳李珍闫韵冰