Nov. 10 – A massive scheme is currently being laid out to develop modern service industries in Zhongguancun – the technology hub situated in northwestern Beijing often referred to as “China’s Silicon Valley.” Following the central government’s promise to inject some RMB1.5 billion into the area’s modern service sectors within the next three to five years, Beijing’s local government recently announced the key service sectors that will likely enjoy the use of the government funds.
According to the “Management of the Pilot Supportive Fund for Modern Service Development in Zhongguancun National Independent Innovation Demonstration Zone (NIIDZ) (jingcaijingyi  No.2352)” issued by the Finance Bureau of Beijing on November 2, the supportive fund – consisting of both the central government fund and Beijing’s matching local government fund – will mainly be utilized in the following service sectors:
All the Zhongguancun NIIDZ-registered enterprises – if engaging in any of the aforementioned service sectors – can consider applying for the use of the supportive fund. The government’s actual financial support will likely go to various projects through different avenues:
As China’s first-ever experimental area for modern service development, Zhongguancun will likely attract an increasing number of technology-intensive service companies which desire to benefit from the region’s cluster effect. According to a report by the China High-tech Industries Herald, within the next five years, eight modern service industrial bases – specializing in areas of IT, integrated circuit, digital culture, biology, engineering, e-commerce and new energy respectively – will begin to take shape and regional modern service revenue is projected to reach RMB2.4 trillion by 2015.
Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China. The firm specializes in assisting foreign enterprises take advantage of incentives in the country. For advice, please email firstname.lastname@example.org, visit www.dezshira.com, or download the firm’s brochure here.
This article is also available on Dezan Shira & Associates’ online business resource library. To view the article, and other regulatory updates, please click here.
Beijing City Guide
Asia Briefing’s City Guide on Beijing is designed for the investor seeking a general overview on China’s political and cultural heart. Also one of the country’s most scenic and historical locations, Beijing’s numerous landmarks such as the Forbidden City and proximity to the Great Wall also make the city a wonderful place to live, work, or visit.
Understanding Development Zones in China
MOFCOM Ranks China’s Top Development Zones
China Allows Zhongguancun High-tech Enterprises to Take Enhanced Deductions for R&D Expenses
Previous Article « China’s Silent Nationalization By Stealth
Next Article China Telecom, China Unicom Face Anti-Monopoly Probe »
Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. With its team of lawyers, tax experts, auditors and...
A firm understanding of China’s laws and regulations related to human resources and payroll management is absolutely necessary for foreign businesses in...
Doing Business in China 2022 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates in...
With the scope and penalties of China’s social credit system being further clarified in 2021, legal and regulatory compliance has become more important than...
As a legitimate tool for reasonable tax planning and cost saving, tax incentives play an important role. Companies also use tax incentives as a useful...
Over the last few months, China has been quickly expanding the pilot program on electronic special value-added tax (VAT) fapiao (hereafter special VAT...
Dezan Shira & Associates helps
businesses establish, maintain,
and grow their operations.
Stay Ahead of the curve in Emerging Asia. Our subscription service offers regular regulatory updates,
including the most recent legal, tax and accounting changes that affect your business.