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(17) Promoting investment with intangible assets
When an enterprise set up by research institutes or institutes of higher learning is transformed into a non-state-owned technical entity where intellectual achievements are incorporated, apart from continuously enjoying relevant preferential policies during the interim, the new corporation may reward the individuals who own such intellectual achievements with at least a 20% share of the appraised value of the said intellectual properties, and may divide a part no higher than 15% of net assets as initial shares and award them to founding members and key management personnel of the enterprise.
(18) Encouraging technological innovation
NSOEs listed as key enterprises in the province may enjoy loan interest discount financed by the Special Support Fund when they are engaged in developing new products, technical innovation projects or high-tech industrialization projects, which comply with relevant industrial policies of the state and the province. Projects launched by NSOEs, which boast intellectual properties and good marketing prospects can be included in the projects that enjoy the support of the province's special funding such as the Provincial Scientific Development Plan Fund and Technical Renovation Loan Interest Discounts Fund.
(19) Cultivating famous brands
As of 2003, the provincial government shall confer a one-time award to NSOEs whose products are qualified as "Well-known Trademarks of China" or "Famous Brands of China", or are listed among the most famous export commodities identified by the state foreign trade authority. For those qualified as the well-known trademarks or famous brands of the province, one-time awards are to be granted to the enterprises by local governments.
(20) Developing export-oriented NSOEs
NSOEs are encouraged to establish Sino-foreign joint ventures or cooperation businesses, and to set up processing businesses' sales networks in other countries through technology transfer and direct investment or export of commodities so as to promote the province's export of products and labor.

7. Legitimate rights and interests of NSOEs should be well protected.
(21) Regulating business operation
NSOEs shall improve management, enhance performance, strictly abide by relevant laws, regulations and policies and observe market rules, ensure safety in production and honesty in operation and tax payment. To protect legal business operation and fair competition, relevant authorities shall cooperate with each other to keep good market order, ban all unlicensed businesses, punish illegal practices and doings that are harmful to consumers, such as production and sale of fake goods, cheating, tax evasion and tax fraud.
(22) Improving legal environment
Based on the principle of fairness and justice local laws and decrees and government regulations shall be made and perfected to protect the legitimate rights and interests of the NSOEs. Problems that occur in the development of NSOEs should be dealt with mainly through education, and resolved by economic or administrative means to the greatest extent. Public security authorities shall enhance security control in the production and operation venues of NSOEs. Judicial authorities shall severely punish illegal behaviors and crimes jeopardizing the normal operation order of NSOEs and violating private properties or personal safety of the owners of NSOEs. Particular personnel shall be assigned to handle under supervision cases involving large sums of money with grave consequences. The construction of the law-enforcement team shall be enhanced and cases involving NSOEs shall be vigorously and fairly processed to maintain the justice of law.
(23) Introducing special protection over particular enterprises
Efforts should be made to create an excellent environment for the development of NSOEs. For those from other provinces that have invested 10 million Yuan and above or that generate one million or more in tax annually and those listed as key NSOEs of the province, prefecture and county level, the local supervision authorities shall give them special protection. Inspections of such enterprises by administrative and legal authorities or law enforcement agencies cannot be conducted without the prior approval of the supervision authorities at the same level.
(24) Strengthening supervision over law-enforcement
Taking the serving of reform, development and stability as the point of departure in the work of political-legal organs, legal support should be provided to NSOEs. In the event that the legal authority deems necessary to apply restrictive measures to the legal representatives of a NSOE or to detain or close down properties of a NSOE or its legal representatives, the enforcement shall only become effective after the coordination with the CPC's political-legal work committee respectively at the province, prefecture and county level is sought and approval is granted if the annual tax paid by the concerned enterprise is respectively above 5 million Yuan, between 2 million Yuan and 5 million Yuan and between half a million Yuan and 2 million Yuan, or if it is a key NSOE certified by the competent authorities respectively at the province, prefecture and county level. When other administrative and law enforcement authorities need to detain or close down a NSOE or its legal representative's operation rights or title to property, prior approval must be obtained from respective supervision departments as well.

8. The "four misconducts" should be strictly forbidden.
(25) Enhancing supervision
Relevant departments for addressing to the "four misconducts" shall be re-adjusted and strengthened to be able to well direct, supervise and coordinate the work on harnessing the "four misconducts", namely, arbitrary charges, indiscriminate penalties, coerced donations and excessive inspections. All relevant departments at all levels shall conduct the self-examination per six months, and report in written form to the Party Committee and the government of the same level.
(26) Regulating charges
Based on the principle of "whoever calls the shots takes the responsibility", a province-wide screening of all items of charges involving NSOEs shall be conducted. All chargeable items stipulated by local authorities below the provincial level shall be abolished. All items and rates shall be unified and made public. No authority is allowed to charge any extra item not known to the public. All approved items shall be charged according to the lowest rate. Records must be kept of all charges made.
(27) Reducing inspections
Repeated inspections over NSOEs are strictly forbidden. In principle, only one routine inspection of the same project of the same enterprise by the same department can be made within a year. Inspections cannot be carried out without documents or warrants issued by an authority of the county level or above.
(28) Strictly controlling penalties
No governments or government institutions shall set penalties target to their subordinate units. To impose any penalties on self-employed businesses and NSOEs, the law-enforcement department shall produce vouchers printed by the state or the provincial finance department. All penalties shall be made payable to banks and finally turned into the treasury. No penalties can be retained or shared by, or transferred or rewarded to administrative or law-enforcement agencies.
(29) Forbidding coerced donations
It is forbidden for any competent department or any of its functionaries to require NSOEs to hold receptions on or in their behalf or reimburse the departments' or individual's own expenses. It is forbidden to either forcefully sell any goods to NSOEs or force NSOEs to purchase goods or publications from designated sources; it is forbidden to force NSOEs to participate in activities such as standard attainment and competitions, or any academic seminars and profit-oriented business trainings; it is also forbidden to either force NSOEs to make donations or buy advertisements or collect any tie-in charges from NSOEs.
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