China Will Increase Support for New Industries on Fiscal Policies etc

    Prime minister Wen Jiabao held the executive meeting of the State Council on the 8th, examined and approved the ‘Circular of the State Council Concerning Speeding Up the Cultivation and Development of New Industries of Strategic Decisions’. It was decided on the meeting to increase support on fiscal and financial policies, and to guide and encourage the input of social funding.

    Key directions, primary missions and supportive policies of the development of five new industries of strategic decisions were confirmed at the meeting. These includes: increasing support on fiscal and financial policies, guiding and encouraging input of social funding; setting up a special fund for the development of the new industries of strategic decisions, establishing a stable growth mechanism for financial investment; establishing supportive tax policies that complete and facilitate the development of the new industries of strategic decisions; encouraging credit aid by financial institutions, developing capital raising by the multilevel capital market, striving to develop venture capital investment and equity investment funds.

    The meeting emphasized that it is a significant strategic mission to speed up the cultivation and development of new industries of strategic decisions. In order to form a coordinated growth structure of new industries of strategic decisions that is unique, complementary and reasonably structured, it is necessary to strengthen the organizational leadership and coordination; to make development plans of new industries of strategic decisions; to draft guidance on industry development; and to optimize regional distribution.