China-Israel Changzhou Innovation Park (CIP) Initiative

Summary:

Program Description

What is the CIP Initiative?
The China-Israel Changzhou Innovation Park (CIP) is a bi-national governmental initiative that provides a unique platform for Israeli industrial companies seeking to enter the Chinese market. The initiative provides Israeli companies the opportunity to establish a headquarters in the Changzhou West Taihu Lake S&T Industrial Park (the “Park) in Jiangsu Province, China and receive a unique incentive package and professional services to help them overcome barriers and succeed in China with the support of the park’s facilities and its dedicated staff.

Israeli companies that join the initiative will receive access to unique grants and financial incentives, discounted office space and facilities (manufacturing space, laboratories, workshops), assistance in protecting intellectual property, support in hiring high-quality local labor, subsidies for equipment, attractive loans, assistance with permits and licenses, logistic management and other services intended to reduce the time and investment needed to penetrate the Chinese market.

Companies can apply for this initiative by submitting a request to the Israel Innovation Authority. Requests will be approved based on a professional assessment. Following approval, the company will be able to negotiate with Park’s management in the framework of pre-agreed conditions.

What are the Incentives?
The joint initiative provides Israeli companies a favorable incentives package which includes a range of financial, support & professional services, including:

• General grants and various kind of awards
• Access to loans
• Talent subsidies for Israeli & Chinese employees
• Equipment Subsidy
• Special rent prices for offices and workshops/production/laboratories spaces
• Intellectual Property Consulting and Services
• Marketing consulting and services
• Support for China Food and Drug Administration (CFDA) Approval process (for biotech and medical device companies)
• Support for getting working visas
• Support for Company Registration in China
• Human resources recruitment support services
• Access to “Israeli Center”

In addition to the aforementioned services, the CIP Administrative Office will also make its best effort to assist Israeli Companies in equipment procurement, accommodation arrangements and other matters upon the request of the Israeli Companies.

Please note that each Israeli company accepted into the initiative will be offered a unique and individualized package based on the needs and interests of the company.

About the Changzhou West Taihu Lake S&T Industrial Park

The Changzhou West Taihu Lake Science and Technology Industrial Park is one out of four national industrial parks in China which receives the support of the Chinese federal government (MOST) and the government of the Jiangsu Province. The park is located in the city of Changzhou in the Jiangsu province, bordering the provincial capital Nanjing to the west, Wuxi to the east, and the Zhejiang province to the south. The city is situated in the affluent Yangtze Delta region of China and is located about 1 hour from Shanghai and Nanjing. The city boasts economic and cultural prosperity, with a GDP of $70 billion in 2013. Over 70,000 industrial enterprises call the city home, of which over 8,000 are foreign-invested.

The Park is located in the Jiangsu Wujin Economic Zone (WEZ), the leading science innovation center of Changzhou. With a regional planning area of 90 sq. km, WEZ‘s development follows the concept of integrating production, technology, financial innovation, and livable industry. WEZ has already become an important growth hub for the Yangtze River Delta Area through its rapid development in recent years. WEZ sets prior development on new material industries such as graphene and carbon fiber, bio-tech (and especially medical devices), and high-end service including e-commerce, corporate headquarters and modern logistics. WEZ aims to be a world-class innovative center integrating talents, industry and city resources for the Jiangsu Province.

With a population of 80 million, Jiangsu province is a hot-spot for economic development and is one of China’s most prosperous provinces with a GDP of $1.093 trillion (2015). Jiangsu Province is a pioneer in terms of cooperation between Israel and China, having been the first province to sign a bilateral R&D cooperation agreement with Israel in 2011.

For more info about Jiangsu click here

Background:
In seeking to promote long-term business partnerships between Israeli and Chinese companies and create support mechanisms for Israeli companies seeking to successfully penetrate the Chinese market, the Israeli Ministry of Economy (MOE), the Ministry of Science and Technology of the People’s Republic of China (MOST), and the People’s Government of the Jiangsu Province signed a protocol in May 2014 aimed at promoting the activities of Israeli companies in national innovation parks throughout China.

To compliment this initiative and to serve as a pilot for the campaign, an MOU was signed between the Changzhou Municipal Government, the Changzhou West Taihu Lake Science & Technology Industrial Park  and  MATIMOP- The Israeli Industry Center for R&D, currently named as Israel Innovation Authority, in May 2014, agreeing to encourage Israeli entities to participate in the Park through a number of unique incentives and benefits available especially to Israeli companies.

CIP initiative was established as a part of a three-year agreement between Israel and China that was signed at the first meeting of the China-Israel Innovation Committee (Beijing, China. January 29th, 2015).

Criteria

What is the Criteria to Apply?

Israeli companies applying for the CIP initiative should meet all the criteria as listed in the initiative Guidelines:

1. Israeli registered company operating in Israel for at least 18 (eighteen) months.
2. The applicant complies with the requirements of the Encouragement of Industrial Research and Development (Conditioning of Approvals – Minimum Salary) Regulations, 2011.
3. The Israeli Company does not have a restricted bank account, nor is in the process of bankruptcy, reorganization etc. and does not have unpaid debts to the Ministry of Economy and Industry, the Israel Innovation Authority or the Israeli tax authorities
4. The Israeli Company has at least one product/service/technology/industrial process, existing or in its final development stages (the “Applicant’s Activity”), that is well defined under its application, and which the Israeli Company wishes to insert the Chinese or global market by participating in the CIP Initiative.
5. Israeli Companies from all technology fields are eligible to apply, except for those listed as “restricted” or “prohibited” in the “Catalogue for the Guidance of Foreign Investment Industries” under Chinese regulations (see below)
6. The Israeli Company demonstrates sufficient financial stability that allows it to conduct the Applicant’s Activity.
7. The Israeli Company has proven business and marketing abilities that evidence his ability to perform the Applicant’s Activity.
8. The Applicant’s Activity has economic potential in the Chinese and/or in the global markets.
9. The Israeli Company’s participation in this initiative and the establishment of a WFOE by it is expected to demonstrate an economic yield both to Israel (beyond the economic yield only to the Israeli Company) and China.
10. The Israeli Company’s participation in this initiative is expected to demonstrate an economic yield to the Israeli Company.

Application Process

How to Apply:    
Israeli Companies interested in joining CIP and receiving the outlined benefits should first apply through the Israel Innovation Authority. Please follow the instructions below in order to apply.

1. Read carefully the entire Guidelines and confirm your eligibility for the program by checking the above criteria requirements. VERY IMPORTANT.
2. Israeli companies should fill out and submit the following:
   • Hebrew Application Form (which includes the incentive package checklist)
   • Disclaimer
   • Authorized Signature Declaration
   • Declaration and Requeste Concerning Regulations for the Encouragement of Industrial Research and Development (Conditions of Approvals – Minimum Salary), 2011
   • Letter of Commitment
3. If the company submitted a request in the past to Israel Innovation Authority, request from the APAC team to check if the company has updated financial strength records in Israel Innovation Authority’s systems. In case there aren’t, or if it is the company’s first submission to Israel Innovation Authority, provide the full list of financial document needed for a financial check which would be conducted by certified public accountants, as described in the guidelines and the financial document.

A full application contains all these documents. Please submit them via email to: APAC@innovationisrael.org.il