China decided to expand Zhongguancun's pilot policies to larger areas to boost the development of national innovation demonstration zones and further encourage entrepreneurship and innovation, according to a State Council executive meeting held by Premier Li Keqiang on Dec 3.
China has implemented a series of pilot policies covering finance, taxation, skills incentives, and science and research funding in Zhongguancun since 2010, which have made significant contributions to the structural upgrade and transformation of Beijing's economy.
The government will also push forward and implement pilot policies in a broader area, reducing the governmental power's effect on start-up businesses and realizing the rapid development of the industry.
The pilot policies serve to boost the researchers' motivation and creativity, which will expedite the achievement of innovative results, promote the growth of innovative and high technology, establish a new driving force for China's economic development, and push forward China's economic path to a medium high level.
According to a decision at the meeting, six pilot policies, which were first implemented in Zhongguancun, will be expanded nation-wide. The policies influence areas such as research funding, program financing, taxation, and benefits for researchers, which include implementation of funding management reforms concerning confirmed research programs, and equity financing through an agency share transfer system for unlisted medium and small enterprises.
The government will also implement four pilot policies in all national innovative demonstration areas, in the Hefei-Wuhu-Bangbu Comprehensive Trial Area in East China's Anhui province and in Mianyang Technology City in Southwest China's Sichuan province, which will boost incentives and foster the creativity of millions of people, streamline administrative procedures and delegate powers to lower levels.
The policies provide a series of benefits and subsidies to researchers and enterprises. For example, technicians and administrative staff will be provided with equity benefits and have paid off individual income tax in five years. In addition, the limited partnership venture capital enterprises, who have invested in unlisted medium and small research enterprises for more than two years, will be qualified to enjoy favorable corporate income tax policies.
The government will continuously encourage the recruitment of global experts, broaden the financing channels of technology enterprises, establish bonded warehouses according to technology enterprises' features and requirements, and promote new policy pilots in Zhongguancun.
