Tax reform for innovation

Stock-based incentives should be encouraged to attract and retain talent for startups and high-tech companies

More preferential tax treatments should be granted to the equity-based compensation plans of high-tech companies. This is a crucial step for promoting technology innovations in China.

High-tech companies in China are now looking for new ways to attract and retain young, educated, talented and creative employees. To survive in the fierce global research and development competition, they need to motivate talented employees to design or produce high-quality, knowledge-intensive products. But many companies in China find it hard to attract top-notch talent.