To boost the country’s manufacturing industry, the Chinese government is providing tax breaks to companies for upgrading their equipment and scaling up R&D. The tax breaks are especially aimed at small- and medium-sized enterprises. Tax reductions will be based on the value of new R&D equipment and facilities purchased after January 1 of this year or if companies have “minor fixed assets.” Firms will also receive tax deductions for imported equipment used in areas including instrument, electronics and biomedicine production, and in industries such as aviation, railway and ship manufacturing, and IT. The incentives are designed to encourage manufacturing of more competitive, high-technology “made in China” products with high added value.

Source: Xinhua