Support for new strategic industries

A series of financial and taxation support policies will be launched for China’s strategic emerging industries in the second half of this year, Economic Information Daily reported on Tuesday.

China will actively use fiscal funds to encourage innovation and guide the social capital to invest in strategic emerging industries, the paper said. It quoted officials from the Ministry of Finance, saying one of the important targets of China’s fiscal policies is to prompt the healthy development of strategic emerging industries.

The support policies will include increasing financial investment, raising government procurement and lowering corporate income tax.

In specific, the Chinese authorities will adopt diversified investment measures by providing interest payment on loans, venture capital and repayable funding to support innovative activities in emerging industries, the paper said.

China will also improve the performance evaluation system and strengthen the supervision of funding, in order to maximize the benefits of fiscal investment in new technology.

In addition, experts said that the Chinese authorities would improve the assessment method of government procurement and prioritize the purchase of new products from strategic emerging industries.

Preferential tax policies will be established for high-tech enterprises from strategic emerging industries, levying corporate income tax at a relatively lower rate for high-tech enterprises and allowing a certain amount of relief on urban construction fees when those companies construct buildings for production.

shenjingting@chinadaily.com.cn