It turned out that in July 2019, the Consulate General of the Republic of Panama in Guangzhou sent a note to the Chinese Embassy, requesting assistance to Panamanian citizens, Chen Guoji and Qiu Zhijun, for land transfer of Chenzhou Yufeng Packaging Co., Ltd.

 

After the Suxian Industrial Development Zone (IDZ) sent special personnel to Guangzhou for negotiation with Yufeng Packaging, the two sides signed agreements for land transfer and investment contract rescission.

 

Considering that the Yufeng Packaging is located in Chenzhou Area of China (Hunan) Pilot Free Trade Zone, the Suxian IDZ has actively cooperated with the free trade zone to recover the land used for the Yufeng Packaging project.

 

“Enterprises often encounter land problems during their development. The ‘enclave economy’ activates idle land and innovates the tax sharing system,” said Cao Hongbo, secretary of Party Working Committee of Suxian IDZ.

 

Suxian IDZ has strengthened the coordinated development with the Free Trade Zone as the linkage area since 2020. The two sides have jointly carried out investment attractions to share resources and complement each other on policies.

 

They make it clear that the take-home portion of taxes from projects introduced by the park and registered in the free trade zone shall belong to the linkage area in the first three years, and shall be allocated to the linkage area and the Free Trade Zone according to proportion after three years.

 

In 2021, Suxian IDZ and the Free Trade Zone jointly held investment promotions for more than 20 times, introducing two projects, D-Light Technology with investment of 50 million yuan and Kangrong Electronics with investment of 70 million yuan, to settle in the Free Trade Zone, as well as the Dongguan Daxin Packaging project with investment of 80 million yuan to settle in Suxian IDZ. The grain bonded processing project with an investment of 200 million yuan has reached the cooperation intention with the Free Trade Zone.

 

“Through joint declaration and approval of the Free Trade Zone, the linkage zone has  introduced Huikun Investment and Real Estate Co., Ltd. to promote the Qiangwang New Materials in the park transformed into an industrial estate developer, creating a new engine of enclave economy,” said Deng Junfeng, director of the management committee of Suxian IDZ.