California

California State

Located in the western United States, it is the most economically developed and populous state in the United States. It borders Mexico to the south and the Pacific Ocean to the west. Also known as the Golden State. Area 411,000 square kilometers. The population was 29.839 million (1990), with 91.3% of the urban population, mainly concentrated in the Pacific Coast, 50% of which live in Los Angeles and San Francisco (San Francisco). It has more than 50% of the country's Chinese and Mexican Americans (Chicanos). Chinatown in San Francisco is the residential area with the highest concentration of Chinese. The capital is Sacramento.

The coastline is 2030 kilometers long and relatively straight. It consists of the Sierra Nevada Mountains in the east, the Central Valley and the Coast Mountains in the west. Geographical conditions vary greatly. The southern desert is short of rain, and the northern coast is prone to flooding due to rain and snow in winter. The precipitation in the northwest is as high as 4,420 mm, while the Colorado Desert in the southeast has only 50 to 75 mm. Less than 140 kilometers apart, there are Mount Whitney with an altitude of 4,418 meters and Death Valley with an altitude of -86 meters, which are the highest and lowest points in the continental United States respectively. In summer, the temperature in the southeastern Colorado Desert is as high as 54°C, and in winter the top of the Sierra Nevada is as cold as the Arctic.

Originally an Indian settlement. It was a Spanish colony in 1769. It belonged to Mexico in 1822. Belonged to the United States in 1848. Gold mines were discovered in the same year, and the gold rush that lasted for seven years caused a rapid increase in population and rapid urban development. It joined the Union in 1850 and became the 31st state of the United States. The transcontinental railroad opened in 1869, connecting the state with other states. At the end of the 19th century, the discovery and exploitation of oil in the Los Angeles area led to rapid industrial development. After the Second World War, new industries emerged, agriculture also developed due to the completion of the North-South Water Diversion Project, and the economic strength and population jumped to the forefront.

The state with the most developed agriculture. Agricultural land accounts for 30% of the state. Mainly irrigated agriculture. There are hundreds of kinds of agricultural and animal husbandry products. The output of sugar cane, vegetables, and fruits occupies a prominent position in the country, and the output of cotton ranks second; the output of rice ranks second; it is an important milk, egg, and meat production area in the country; the Central Valley is the richest agricultural area. The forestry industry is developed and it is one of the three largest timber-producing states in the country. The fishery output value ranks first in the country, and San Francisco, San Diego and San Pedro are important fishing ports.

The manufacturing industry is developed, with complete departments and a wide range of products. Its output value and number of employees rank first in the country. Mainly include emerging sectors such as aerospace and electronics, as well as oil refining, petrochemicals, arms, food processing, papermaking, and printing industries. In the mining industry, oil and natural gas extraction account for 2/3 of the total output value. The Los Angeles area is the largest manufacturing center in the West, mainly in the aerospace and oil mining industries; its output value accounts for about 50% of the state; San Francisco and San Diego are also important manufacturing centers. The Santa Clara Valley of Silicon Valley is known for its developed electronics industry, and the Central Valley is the center of the food processing industry. The expressway network is densely covered and ranks second in length in the country. It is the western terminus of three transcontinental railway lines. The Sacramento River Delta has a dense network of rivers and developed water transportation. Los Angeles and San Francisco are important international airports.

Tourism is booming. Charming beaches, pleasant climate, excellent facilities, and convenient transportation attract tourists. There are many art galleries, the internationally renowned San Francisco Opera and the Los Angeles Symphony, Hollywood and the University of California and other cultural and educational institutions.

California (CA)

1. Natural and cultural environment

(1) Climate and area

California is located in the United States The West Coast is bounded by the Pacific Ocean to the west, bordering Oregon to the north, Nevada and Arizona to the east, and Mexico to the south. It covers an area of ??158,693 square miles and is located between 32 and 42 degrees north latitude.

The climate is mild throughout the year, with the rainy season starting from October to April of the following year, and the dry season from May to September. The annual rainfall in Northern California and Southern California is quite different. The annual rainfall in the northern coastal area reaches 80 inches, and the annual rainfall in the southern area is up to 80 inches. For example, the Los Angeles area receives only about fifteen inches of annual rainfall, while annual rainfall in the Eastern Desert is even rarer.

(2) Capital and Population

The capital of California is San Clemento (Sacramento), located 87 miles northeast of San Francisco, California. The total population of California is approximately 32.6 million, accounting for 12.2% of the total population of the United States, of which 28.4% are Hispanic, 10.4% Asian, 7% black, 0.6 Indian, and 53.6 white. From 1985 to 1995, California has received an influx of 3.5 million immigrants, mainly from Latin America and Asia (Mexico and the Philippines account for the top two, accounting for more than one-third in total, and other major sources of immigrants are: Vietnam, China, Iran, and South Korea).

(3) Political System

The California Constitution was adopted in 1979. The governor is the highest administrative head of the state and oversees state affairs. The governor is elected by the people for a four-year term with no term. limit. The state parliament adopts a bicameral system, with the Senate consisting of 40 members, serving four-year terms; and the House of Representatives having 80 members, serving two-year terms. The citizens of the state have the creative power to enact laws and can also review laws passed by the state assembly. The state is divided into fifty-eight counties, most of which are managed by county supervisory committees composed of five people.

(4) Natural resources

California is rich in natural resources such as agriculture, forestry, animal husbandry, and minerals, and is rich in minerals such as oil, cement, natural gas, and asbestos. Agricultural products include cotton, barley, wheat, corn, fruits, dried fruits, etc. It is especially rich in grapes and is the most important wine producing area in the United States. California is also one of the major producers of lumber, pulp and paper in the United States.

II. Economic Overview

Important Economic Indicators

1 Per capita income: US$29,8193 in 1999, which was US$28,518 per capita income in the United States. High, ranking 14th among all states in the United States.

2 State GDP: US$988,339 (mil) in 1999, ranking first among all states in the United States.

3 According to statistics from the Los Angeles Economic Development Corp., California’s GDP accounts for 12.7% of the United States’ GDP. If California is regarded as an economy, California’s GDP It ranks as the seventh largest economy in the world (after the United States, Japan, Germany, France, the United Kingdom and Italy).

3. Policies and Measures for Investment Management

(1) Company Establishment

1 Foreign or out-of-state companies must first apply to the Office of the California Secretary of State (Secretary of State's Office) handles the registration of agents and business addresses. In addition, foreign companies are required to submit a "Certificate of Good Standing" issued by their home country's government agency. The Secretary of State's office usually approves it within two to three weeks. An application fee of US$350 and a minimum franchise tax of US$800 must be paid when applying.

2 The California Employment Development Department is responsible for providing employment-related information and assisting employers in recruiting qualified employees. According to California income tax laws and unemployment insurance regulations, every company must register with the Employment Development Department.

3 The procedures for opening an office in California are as follows:

(1) Apply to the Secretary of State's Office (SECRETARY OF STATE'S OFFICE) for an establishment permit:

A Companies established in accordance with the laws and regulations of other states or countries must apply to the Secretary of State for a STATEMENT AND DESIGNATION BY FOREIGN CORPORA-TION and confirm the company’s representative and principal office in California. Place.

B Foreign companies must submit a CERTIFICATE OF GOOD STANDING to indicate that the company has good performance in their country. This certificate must be obtained from the relevant units in the host country and expressed in English. After receiving the declaration and designation form from the foreign company, it will take approximately six to eight weeks for the Secretary of State's Office to issue the CERTIFICATE OF QUALIFICATION.

C Foreign companies must submit a foreign company declaration (STATEMENT BY FOREIGN CORPORATION) every year, and pay an application fee of US$350 and a privilege tax of at least US$800 to the Secretary of State’s Office to be approved for establishment. Foreign companies are required to file tax returns every year. Since California tax laws are complex and strictly enforced, they should seek detailed and clear assistance when preparing to file tax returns. All inquiries and requests may be directed to:

SECRETARY OF STATE, CORPORATE FILING DIVISION

1230 J Street, Sacramento, CA 95814

Tel: (916) 445-0620

4 Application for company name:

(1) The company should inquire with the Secretary of State’s office before establishment and confirm the feasibility of the name. If the name is different from other If a registered name is duplicated, the assumed business name should be registered. The FICTITIONS BUSINESS NAME STATEMENT must be submitted to the clerk in the county where the applicant's main business is located. The applicant must publish the statement in a newspaper that is popular in the county within thirty days, once a week for four consecutive days. week, and submit an AFFIDAVIT to the county clerk.

(2) All inquiries and requests can be directed to the office in the county where the company is located. For general information, please contact:

COUNTY CLERK'S OFFICE, Fictitious Name Registration

720 Ninth Street, Sacramento, CA. 95814

Tel: (916) 440-5522

(3) FILING FOR LOCAL LICENCES AND PERMITS ):

A license is required to open a business in each county and certain areas of the city, and a license is also required for the use of buildings. Business license fees vary by region and may be a flat rate (FLAT RATE) or based on a percentage of business value and a combination of factors. The company must also pay personal property tax and register with the county tax authority.

(4) Apply for a trademark or service mark:

The company must apply to the Secretary of State’s office to register its trademark and service mark and submit a trademark and service mark registration form (REGISTRATION OF TRADEMARK) AND SERVICE MARK). The rules in this area are complex and require special attention.

All inquiries and requests may be directed to:

SECRETARY OF STATE,

Limited Partnership Division, Trademark and

Service Registration

923 12th Street, 3rd Floor

Sacramento, CA 95814

Tel: (916) 445-9872

(5) FILING FOR California Transaction and Use Tax CALIFORNIA SALES AND USE TAX):

In accordance with the transaction and use tax laws, each sale of tangible personal property must apply for a seller's license from the California Board of Equalization. If the ownership and location of the movable property change, you must apply again. To apply for a seller's license, you must fill in the application form (APPLICATION FOR A SELLER'S PERMIT AND REGIST-RATION AS A RETAILER) and attach the applicant's statement of financial status (STATEMENT OF FINANCIAL). CONDITION), after passing the review of the Equality Commission, a license will be issued to be posted at each commercial operation premises. All inquiries and requests may be directed to:

CALIFORNIA BOARD OF EQUALIZATION

Department of Business Taxes

1020 N. Street

Sacramento , Ca. 95814

Tel: (916) 445-6464

5. Introduction to California Employment Development Department

CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT Responsible for providing employment-related information to help employers find qualified employees. According to California income tax laws and unemployment insurance regulations, every company must register with the Employment Development Bureau, which also provides extensive information on tax withholding, insurance, contributions, etc. All inquiries and requests may be directed to:

CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT

Office of Registration

800 Capital Malls

Sacramento, Ca . 95814

Tel: (916) 653-0707

6. Apply for a visa:

All foreign investors must apply for the appropriate visa from the U.S. embassy or consulate abroad. Visas are divided into three categories:

(1) Temporary Business Visa (B-1) (TEMPORARY VISITOR FOR BUSINESS) This is the easiest visa to obtain and is suitable for people who come to the United States for short-term business purposes , the validity period depends on the reciprocal relationship between the visa holder’s home country and the United States, but it shall not exceed the stay period of six months.

(2) Treaty Trader and Treaty Investor Visa (E-1/E-2) (TREATY TRADER AND TREATY INVESTOR). The foreigner must be a national of the country that signed the treaty and be an employee, and his position must be in the management or executive level or in a specific field of professional knowledge.

(3) Intra-company transfer visa (L-1)(INTRA-COMPANY TRANSFER). This type of visa is issued to employees of multinational companies to temporarily enter the United States to continue serving the same employer.

The Immigration Regulations passed in 1990 stipulate that the Immigration Bureau (IMMIGRATION AND NATURALIZATION SERVICE) can grant investors permanent residence status. However, the requirements are that the minimum investment amount is US$1 million, and at least ten American jobs are provided in the new enterprise; when investing in rural areas or less economically developed areas, the minimum investment amount can be US$500,000. In addition, investors must establish the sustainability of their investment within two years in order to maintain their permanent residency.

4. Taxes

California’s tax system is managed and collected by state and county government agencies at different levels. The main taxes include:

(1) Individuals Income tax (Personal Income Tax)

The tax rate ranges from 1% to 9.3%.

(2) Corporate income tax and business franchise tax (Corporate Income Franchise Tax)

Business franchise tax is 8.84% of the annual taxable income, but the minimum tax amount is US$800.

(3) Sales Tax and Use Tax

The current sales tax in California is 7.25%, but because local governments also have to levy sales tax, Therefore, the actual tax amount is between 7.25% and 8.25%. Businesses in California must pay use tax if they use tangible current assets that do not pay sales tax, such as assets or inventory purchased out of state.

(4) Local Property Tax (Local Property Tax)

It varies from place to place. The average tax rate across the state is about 1.1% of the announced land price.

(5) Unemployment Insurance Tax (Unemployment Insurance Tax)

The annual salary of each employed worker is 3.4 of US$7,000.

(6) Disability insurance (paid by employed workers) The rate is 0.8 of salary $31,767.

5. Measures to encourage investment

(1) Investment deduction:

When companies investing in California purchase or lease manufacturing equipment, manufacturers are entitled to 6 Manufacturers' Investment Credit: High-tech companies also enjoy the same treatment when setting up special-purpose buildings. The amount not deducted in the current year can be deducted from the tax payable in the next eight years. New companies can also choose to reduce or reduce the sales tax of 5% when purchasing manufacturing assets in the first three years of operation. Commercial aircraft parts and repairs are not subject to sales tax.

(2) Research and development deduction:

R&D work must be carried out in California and does not include appearance improvement designs of commercial products. Manufacturers can enjoy a tax deduction of 11% for their own research and development, and a tax deduction of 24% for the research and development expenses entrusted to other companies.

(3) Economic Revitalization Manufacturing Property Tax Rebate

When the company's capital assets are directly invested in manufacturing activities and meet the requirements of "creating ten full-time manufacturing jobs" , when the hourly wage is more than ten dollars, California property tax law allows local governments to refund the property tax on the capital property.

(4) Investment loss write-off

Investment losses of newly established enterprises can be written off up to RMB 100 within eight years. Investment losses of the original enterprise can be written off up to 50% within five years.

(5) Enterprise Zones

Companies in the zones can enjoy better tax credits, such as tax credits of up to US$20 million; An employee gets a deduction of $23,400; investment losses can be written off for up to fifteen years; and there are discounts when winning state contracts.

(6) Deduction for childcare facilities

Employers can also enjoy a 30% deduction (up to US$50,000 per year) for the equipment of a nursery for their employees.

(7) In order to encourage companies to invest in California, California passed a law in October 1997. Starting from the fiscal year 1998/1999, high-tech companies that invest more than US$150 million can Negotiate with local governments to reduce annual property taxes of US$150 million for a period of fifteen years. After the exemption period, the local government will levy a "Community Service Fee" from the company, with an amount of approximately 25% of the investment deduction, and the maximum amount shall not exceed approximately US$2 million per year. Companies applying for this incentive must meet the conditions set by the Standard Industrial Classification (SIC).

(8) All counties and cities in California provide preferential loans for industrial development, allowing investors to obtain loans that are 30 to 40 percent lower than the basic interest rate for factory renewal or expansion.

(9) Financial subsidies for small businesses:

California has a small business loan guarantee program. For small businesses that have been in business for three years or more, if they are unable to borrow money from general financial institutions, When you obtain a loan for a new investment project, you can use the guarantee service provided by this project, with a loan of less than US$350,000 or 90% of the investment amount.

(10) Export Financial Assistance Measures:

The California World Trade Commission has an Export Financial Assistance Office, which provides US$450,000 to medium and small enterprises engaged in exporting California products. The following loan amounts are guaranteed to assist manufacturers in exporting.

(11) Labor training assistance measures:

The California government provides an EMPLOYMENT TRAINING PANEL to subsidize the training costs paid by employers when hiring workers. There is also a job training cooperation program that provides companies that provide on-the-job training with a subsidy of 50% of workers' wages for up to six months.

6. Foreign Trade Zones

California has ten foreign trade zones, namely Oakland (Bay Area); San Francisco (Bay Area); San Jose (Bay Area); Shafter (Central Valley/Sierra); Palmdale (Inland Empire); Long Beach (Los Angeles); Los Angeles (Los Angeles); Port Heuneme (Los Angeles); West Sacramento (Sacramento); San Diego (San Diego).

7. Restrictions on foreign investment

California has no restrictions on foreign investment.

8. Investment authorities or related service units:

(1) Office of Foreign Investment

California Trade and Commerce Agency

801 K Street, Suite 1936

Sacramento, CA 95814

Tel: (916) 327-5797

Fax: (916) 322-3401

E-mail: ofi@commerce.ca.gov

(2) Other relevant agencies in charge of trade and investment:

1. CALIFORNIA WORLD TRADE COMMISSION (WTC)

Headquarters and office of Police of Policy and Research

801 K Street, Suite 1700

Sacramento, Ca. 95814-3520

2 . CALIFORNIA EXPORT FINANCE OFFICE (CEFO)

6 Centerpointe Drive, Suite 760

La Palma, Ca. 90623-1081

Tel: (714) 562- 5529 Fax: (714)562-5530

3. CALIFORNIA OFFICE OF EXPORT DEVELOPMENT (OED)

One World Trade Center, Suite 990

Long Beach, Ca. 90831-0990

(3) Regional Investment Service Agency

1. Los Angeles Economic Development Corporation

South Flower St., 32nd Floor

Los Angeles, CA 90071

Tel: (213) 236-4810

Fax: (213) 622-7100

2. San Diego Regional Economic Development Corporation

401 B Street, Suite 1100

San Diego, CA 92101

Tel: (619) 234-8484

Fax: (619) 234-1935

9. Main Industries

(1) Aerospace Industry

California’s aerospace industry has a long history of development. There are 1,140 aerospace manufacturers with 167,700 employees, including 750 aircraft and parts manufacturers, 280 search and navigation equipment manufacturers, and 115 space and parts manufacturers, with a total production value of US$29 billion. , accounting for 23% of the total output value of the U.S. aerospace industry. Some industries in California's aerospace industry lead the nation in total production value, such as search and navigation equipment accounting for 35% of the nation's total, rockets, space shuttles and parts accounting for 28%, and aircraft and parts accounting for 18%.

California's aerospace industry is concentrated in Southern California, with more than half of its employees concentrated in the Los Angeles and Long Beach areas.

Since the aerospace industry uses a large number of electronic and electrical products, and California is also a leader in the United States in computer, electronics, avionics and other industries, the two industries complement each other. In addition, aerospace technology can create and drive the development of emerging industries (such as multimedia, data information, biomedicine, and advanced transportation systems, etc.), which plays an important role in California's economy. Famous aerospace manufacturers in California include: Boeing North American (the company newly named after Boeing merged with Rockwell International), Northrop Grunman Corporation, Lockheed Martin Missiles and Space, Boeing Company, Hughes Electronics Corporation, McDonnell Douglas Corporation (has been acquired by Boeing company mergers and acquisitions).

After the end of the Cold War in the 1980s and early 1990s, the U.S. government's defense budget was significantly reduced, and California's aerospace industry suffered a severe recession. After eight years of recession, it only resumed growth in 1997. Since the financial turmoil in most Asian countries in 1997, the economy has shown a severe recession. As a result, orders for Boeing's passenger aircraft have been canceled, which has affected the operations of Boeing's passenger aircraft department.

(2) Agriculture

California has always been the largest agricultural state in the United States, with an agricultural output value of US$26.8 billion and providing nearly 396,000 job opportunities. California's agricultural exports were worth US$6.7 billion, one-third of which was exported to the Asia-Pacific region (US$2.3 billion). The exporting countries are Japan, Canada, Hong Kong, South Korea, Germany, and the United Kingdom. Among California's agricultural export items, cotton is the largest, followed by walnuts, wine, grapes, citrus, beef, tomatoes, cheese, raisins, walnuts, rice, etc.

(3) Computer and electronics industry

The computer and electronics industry in California grew rapidly from the 1970s to the 1980s. Since the high-tech basic research department of electronic technology is completed in the laboratory of the University of California, these industries have been rooted in the California area and attracted more technical talents. California's electronics industry manufactures mainframe computers, chips and labor-saving products. Many California companies have grown into international businesses with branches around the world. California has become an important innovator, manufacturer and user of the information technology industry.

California's computer industry is one of the main factors in California's booming economy, with annual sales worth approximately US$35 billion, accounting for 39% of the US$90 billion in national sales. California's computer industry employs 176,400 people, accounting for 27% of the nation's total, and the peripheral equipment industry employs even more than 50% of the nation's population. California's hardware and computer industry absorbs 37 percent of the nation's venture capital. Computer manufacturers are mostly concentrated in the San Francisco Bay Area and Southern California. However, more and more computer manufacturers have chosen to set up base in the Sacramento area because of its vast territory, cheap land, housing costs and earthquake factors. As the computer market in California continues to grow, not only the original manufacturers continue to expand their business scale, but also attract new manufacturers to set up new companies in California. In addition, foreign manufacturers in urgent need of high technology have come to California to find cooperation partners, and venture capital funds from the United States and foreign countries have A large number of companies have also poured into the market, making the future of California's computer industry even brighter.

(4) Biochemical Industry

There are approximately 376 biochemical companies in California, accounting for one-third of the United States, with an annual output value of approximately US$8.4 billion. Biochemical companies in California are mainly concentrated in four regions. The Los Angeles area leads the way in the number of commercial research facilities and testing laboratories. The University of California, Los Angeles (UCLA), the University of Southern California and the California Institute of Technology are all well-known research institutions. Amgen, which is listed on the Fortune 500, is located in Thousand Oaks, near Los Angeles. Biochemical companies in the San Francisco Bay Area focus on the research and development of biochemical technologies and materials. Santa Clara County has the second largest concentration of commercial R&D institutions in the state.

Important companies include Genentech (located in South San Francisco), which manufactures artificial insulin, and ALZA (located in Palo Alto), which manufactures Nicoderm, a smoking cessation product. San Diego County ranks third in the number of biochemical companies, and the Central Valley region ranks fourth, mainly in agricultural and food processing applications. UC Davis is the research center in this area. Important town. California's biochemical and pharmaceutical industries employ approximately 50,500 people. Due to the continuous inflow of foreign funds in urgent need of advanced technology, California's biochemical industry is booming, especially in biochemical technology products and commercial research.

(5) Financial Services Industry

California is the financial center on the west coast of the United States. There are 200 financial institutions (registered in California) banks, 190 UniCredit Bank, 70 savings bond companies, 54 four trust companies, savings and loans, and financing financial institutions. The total assets of California's financial institutions amount to $596.7 billion. California is close to the Pacific Basin, Canada and Mexico, and 75 foreign banks have established operating bases across the state. Due to strong economic and employment growth, developed foreign trade, and a large population and households, California has become the second largest financial center in the United States.

(6) Computer software industry

California leads the United States in the software industry. California's software industry is worth approximately $21 billion. It employs 104,000 people, accounting for 19% of the total in the United States. Programming is the leading software industry, employing approximately 43% of people. Packaged software and computer integrated systems design employ 36 and 21 respectively. There are approximately 6,500 software companies throughout California, as well as many sole proprietorships. More than half of them are concentrated in the Silicon Valley area of ??Northern California. There are 1,200 businesses in Santa Clara alone, providing nearly 30,000 job opportunities. Los Angeles ranks second with 1,150 businesses and 15,600 job opportunities. Others are scattered in Orange County, San Mateo, Alameda and other counties. The software industry is one of the fastest growing industries in California. The average annual salary in California's software industry is $66,760.

10. Industries with development potential

Industries such as aerospace, biochemistry, environmental protection, computers and electronics, and tourism will continue to flourish.