China Issues Guidance to Promote Enterprise Technological Transformation

By Dezan Shira & Associates

Posted: 21st September 2012 09:05

With the aim to promote industrial upgradation and realize scientific development, China’s State Council released the “Guiding Opinions on Promoting Enterprise Technological Transformation (guofa [2012] No.44, hereinafter referred to as ‘Opinions’) on September 1, clarifying the development objectives, main tasks and safeguarding measures for enterprise technological transformation by 2015. Some of the objectives and measures are listed below.
Development objectives by 2015
Safeguarding measures
According to the Opinions, there are five safeguarding measures to promote enterprise technological transformation, specifically:
A development plan for key industries and sectors shall be scientifically formulated, industrial policies for key industries improved, and the guidance for planning and industrial policies over technological transformation strengthened.
The role of government investment in guiding social investment shall be given full play, with focus on supporting technological transformation in key sectors.
The business tax to value-added tax (VAT) pilot conversion shall be steadily promoted, and intangible assets such as patents, trademarks and brand transfers shall be included in the scope of VAT collection to support enterprise technological transformation.
Coordination between credit policies and industrial policies shall be strengthened, thereby directing financial institutions to intensify their financing support towards enterprise technological transformation.
A unified national statistics system for investment in industrial technological transformation shall be established to strengthen the supervision, analysis and information release over investment in enterprise technological transformation.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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