Published by ChinaMNC · Jiangyuan

Jilin Province Releases Measures to Support Comprehensive Straw Utilization: Implications for Foreign Founders

Jilin Province has issued new measures to support comprehensive straw utilization, including subsidies for straw collection, processing, and various utilization methods. For foreign founders, this signals potential opportunities in the agricultural and renewable energy sectors in Jilin, but requires careful navigation of local regulations and incentives.

What the New Jilin Measures Mean for Your China Company

On August 25, 2026, the General Office of the Jilin Provincial People's Government published a notice (吉政办规〔2026〕1号) outlining measures to support the comprehensive utilization of straw. While the document is aimed at local governments and agencies, it contains practical information for foreign founders considering a presence in Jilin's agricultural or renewable energy sectors. Below we break down the key points and their relevance to business registration and operations.

1. Understanding the Regulatory Context

The measures designate specific no-burn zones (禁烧区) and limited-burn zones (限烧区) for straw. No-burn zones include areas within 1 km of railways, highways, national and provincial roads, and airports; within 50 meters of forest edges; and conservation tillage plots. These zones are mapped by the provincial Department of Ecology and Environment. For companies involved in straw collection or processing, this means operational plans must align with these zones. If your business involves straw handling, ensure your facilities are not located in no-burn zones and comply with local burning regulations.

2. Subsidies for Straw Utilization: Opportunities for Foreign-Invested Enterprises?

The document lists several subsidies available to eligible projects. While the subsidies are primarily directed at local governments and certain entities, foreign-invested enterprises (FIEs) may participate in related projects if they meet the criteria. Key subsidies include:

• Organic fertilizer from straw: For typical black soil counties, subsidies of at least 150 RMB per mu for applying organic fertilizer made from straw. (Section 2)
• Conservation tillage: For straw coverage above 60%, subsidy up to 80 RMB per mu; with additional practices like strip tillage, harrowing, or subsoiling, an extra 25 RMB per mu, up to 105 RMB per mu. (Section 3)
• Straw return to field: For counties with large straw resources, 80 RMB per mu for full straw return operations (e.g., deep plowing, mixing) or rice paddy operations. (Section 4)
• Feed utilization: 35 RMB per ton for yellow silage or ruminant feed from straw (for single households storing/processing over 100 tons); 30 RMB per cubic meter for new or expanded silage pits over 500 cubic meters. (Section 7)
• Substrate utilization: 60 RMB per ton for straw used in edible fungi, rice, or horticultural substrates. (Section 8)

Foreign founders should note that these subsidies are typically channeled through county-level governments and may require local partnerships or specific project structures. The document also mentions support for building collection and processing centers (Section 6) and using central budget investments for projects like green hydrogen, green methanol, biomass cogeneration, biodegradable materials, and polylactic acid (Section 10). These areas may offer entry points for foreign technology and investment.

3. Implications for Company Registration and Operations

If you are considering establishing a company in Jilin to engage in straw utilization or related activities, here are practical steps:

• Entity choice: A wholly foreign-owned enterprise (WFOE) or a joint venture (JV) with a local partner could be suitable. JVs may facilitate access to subsidies and local networks.
• Registration steps: Standard procedures apply: name pre-approval, business license application, tax registration, and sector-specific approvals. For agricultural projects, additional environmental and land-use approvals may be needed.
• Capital requirements: There is no universal minimum capital for most sectors, but practical capital should cover project costs. Subsidies may offset some expenses, but they are not guaranteed and often require upfront investment.
• Licenses: Depending on activities (e.g., fertilizer production, feed processing, biomass power), you may need industrial production licenses, environmental permits, and safety certificates.
• Tax: FIEs are subject to corporate income tax (25%) and VAT. Agricultural projects may benefit from tax incentives, but eligibility must be confirmed with local tax authorities.
• Compliance: Adhere to environmental regulations, especially regarding straw burning and waste management. The document emphasizes provincial oversight and local government responsibility, so ensure your operations align with county-level plans.

4. Key Takeaways for Foreign Founders

• Subsidies are available but targeted: Most subsidies are designed for local farmers and cooperatives, but foreign-invested projects in processing or technology may qualify if structured appropriately.
• Local partnerships are advantageous: Collaborating with local governments or enterprises can help navigate subsidy applications and regulatory requirements.
• Sector focus: Opportunities exist in straw collection, processing, feed production, substrate manufacturing, and renewable energy projects (green hydrogen, biomass).
• Regulatory compliance is critical: Understand no-burn zones and environmental rules before establishing operations.

For personalized guidance on registering and operating a company in China, including in Jilin Province, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.