China Encourages Creative Cooperation with Foreign Firms

The Chinese government will encourage innovative firms to cooperate with overseas companies to make better use of global resources and learn management and human resources skills.


The cooperation will help Chinese firms to improve their innovation capacity and broaden development space, according to an executive meeting of the State Council chaired by Premier Li Keqiang on Wednesday.


The meeting agreed the government should push forward with "maker spaces" and online innovation platforms to gather innovators together to share ideas and resources. Crowd-funding and online lending will widen financing channels for startups.


The meeting agreed to increase fiscal and financial support, allow easier market access and strengthen protection of intellectual property rights.


China will expand tax breaks to more industries. Companies in textiles, light industry, machinery and auto making can take fixed assets purchased after Jan. 1 into account in pre-tax deductions.


The new rule is expected to save companies 5 billion yuan (780 million U.S. dollars) in taxes this year.