（1）Policies
1、State level hi-tech zone preferential policies of tax reduction or exemption on hi-tech enterprises
A newly registered and recognized hi-tech enterprise in the current year is exempted from income tax for 2 consecutive years from the production year after application by the enterprise and approved by tax authority. An old enterprise can enjoy a deducted income tax of 15% from the date of being recognized as hi-tech, and a deducted income tax of 10% if its export value exceeds 70% of the annual output value, and is checked by tax authority.
2、Preferential policies of tax reduction or exemption for foreign-funded enterprises
Production-driven foreign-funded enterprises with an operating period of over ten years, and enterprises registered in the Zone and adopting advanced technology, enjoy “2 years of tax exemption and 3 years of half tax reduction “and income tax preferential policies for advanced technology enterprises stipulated by the state. Foreign-funded enterprises are exempted form local income tax during the period of enjoying tax exemption and deduction. Reinvesting their profits in increasing the registered capital of their enterprises or in establishing other foreign-funded enterprises with an operating period no less than five years, those foreign investors can enjoy state preferential policies of tax return for reinvestment.
（2）Location and logistics
The Hi-tech Zone is adjacent to the Xiangfan Railway Station and Airport, state level roads316 and 207pass through it. Four highways, Weifan, Xiaoxiang, Hanshi, Xiangjin intersect here, connecting national highway network such as Jingzhu and Wuhuang, with such a sharp advantage in transportation, the Zone as a center, is surround by cities connected by these highways in a cross shape. For big cities like Beijing, shanghai, chengdu, Guangzhou, Xi’an, You can start a tripfrom xiangfan early in the morning and reach them late in the evening, and For Wuhan, it’s just a come-and-go trip within a daytime. Handan Railway, Xiangyu Railway 2nd railway and Jiaoliu Railway electrical reconstruction project are already or will be started in the year, Xiangfan Railway hub will also be under reconstruction and is expected to complete in 2008. Xiangfan Airport reconstruction project is planned to implement, to meet D standard, 30 flights per week, number of flight routes will be increased to 10 from current Beijing, Shanghai, Shenzhou to Guangzhou, Wuhan ,Chongqing,and more.
（3）Resources
Abundant human resources and relatively high qualities in labor force, sufficient supply of water ,electricity and steam at favorable prices. Scientific research institutes, colleges and universities, financial institutions, foreigner related service, hospitals are relatively perfect, top class in northeast Hubei Province and adjacent areas. Other facilities include State level 2 road ports, customs, import-export inspection and quarantine. Bonded logistics center and etc.
（4）Industrial advantages
Industries with aeronautics and astronautics, optical, new materials as the main bodies, there are 163 recognized hi-tech enterprises in the Zone ; auto industries with whole vehicles, power, research and development, auto-parts as the main bodies, with Dongfeng Automobile Xiangfan base as the locomotive, there are 4 enterprises producing vehicle engines, and 154 enterprises in producing auto parts.
（5）Service advantages
The Hi-tech Zone investment promotion bureau takes care of all procedures including name approval, capital verification, approval certificate for foreign investors, industrial and commercial registration, tax registration, organization code, facilitate requisition of land, planning, water and electricity supply and etc, coordinate and solve all the problems encountered during the construction process of the project.
Weather
(June 18) Cloudy;22-21°C; SE 3km/h.(June 19)Cloudy, 19-22°C;S 5km/h.
Investment
