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Shenzhen Plans More Incentives for Returnees

Shenzhen will introduce enhanced policies to help overseas returnees adapt to life and pursue careers in the city, Vice Mayor Liu Yingli said yesterday.

Measures include allocating the annual government subsidy of 30 million yuan (US$375,000) to banks as guarantees for loans to firms founded by foreign returnees, as well as an improved "overseas talent certificate."

"Shenzhen is highly market-oriented. When it comes to the market, no one cares whether you are an overseas student or not. It is the quality and technology edge of your product that matters," said Liu in a government conference discussing incentives for Chinese people returning after studying abroad.

There are 7,800 foreign returnees working in Shenzhen and one-third of them have started their own businesses using original patents. They have already become one of the reasons behind the city's reputation for innovation, Liu said.

While many of them have become distinguished entrepreneurs, officials or scholars in their own fields, the government plans to pool their strength to develop an "overseas student economy," Liu said.

In order to attract talented foreign returnees to Shenzhen, the city mapped out a series of favorable policies in 2000, which included start-up subsidies, low-priced housing, and easier access for their children to public schools.

The policies need to be fine-tuned after years of implementation, said Yin Yaotang, a senior official with the city's personnel bureau.

Related government bodies shall make full use of the roles of the "invisible hand" on a market economy when improving the policies, Liu suggested.

The present "overseas talent certificate" was criticized as being ineffective, as holders can't use it like a temporary residence permit to buy an apartment or get seats in public schools for their children.

Policymakers need to amend the incentives to make them practical and beneficial to foreign returnees in a real sense, Liu said.

Liu urged the related government bodies to work out amendments to the existing policies before the end of November. The new incentives will be included before the year end, Liu said.

(Shenzhen Daily November 2, 2005)

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