China will deepen reform and opening-up of national high-tech industrial development zones, a decision made at the State Council’s executive meeting chaired by Premier Li Keqiang on July 1.
To that end, financial institutions should provide intellectual property pledge financing services for innovation-driven enterprises in those zones, the Premier said, especially startups without their own property or startup capital and struggling to get venture capital funding.
With 30-plus years of development, China’s national high-tech zones have grown into pacesetters in terms of innovation, industry and talent in China’s economic and regional development.
They are home to 36.5 percent of high-tech enterprises across the country, contributing to one-third of its authorized invention patent applications in 2018.
High-tech zones are important for catalyzing high quality development, reform and opening-up. They also help spur entrepreneurship and innovation and create jobs for college graduates, the Premier said.
To move China’s economy up the value chain and promote high-quality development, the country must harness the cluster effect of the high-tech zones, the Premier said.
Previous experiences in past years show the high-tech zones gather a large amount of innovation resources. Under the current complicated domestic and international situations, efforts must be made to further exert the cluster effect of high-tech zones, tap their potential and bring out their strengths, stabilizing the fundamentals of the Chinese economy.
The key in bringing out the advantages of these zones is deepening the reform and opening-up, the Premier said, adding the zones are also born from the reform and opening-up and the government shall do its best in making a difference where breakthroughs and new steps are possible, and remove unjustified restrains to boost market confidence.
It was decided at the meeting to extend applicable policies tried and tested in pilot free trade zones and national innovation demonstration zones to national high-tech zones, where more pro-innovation policies will be piloted. Regulations on long-term multiple-entry visas and residence permits for overseas talent will be relaxed.
Commercial banks will be encouraged to set up branches dedicated to science and technology sectors in national high-tech zones. Intellectual property pledge financing will be supported. Qualified developers of national high-tech zones may go public to raise funds.
The Premier said to ensure priorities in six fronts for steady economic fundamentals, reform and opening-up must be further expanded to create a better business environment, and continuously increase attractiveness and inclusiveness.
He also said national high-tech zones will be further opened up. Diverse forms of cooperation will be encouraged between these zones and foreign counterparts to better integrate them into international industrial and supply chains, according to the Premier.
