China funnels support into private scientific and tech companies

China will support private companies taking the lead in major scientific and technological projects in the fields of industrial software, cloud computing, artificial intelligence, industrial internet, gene and cell medical care, and new energy storage, according to the National Development and Reform Commission on Tuesday.

The move came as the economic regulator, along with a group of ministries, rolled out a raft of 28 detailed measures on Tuesday that aim to solve and relieve major problems of private firms during their development.

According to the new measures, more efforts will be made to expand the scale of real estate investment trust funds, or REITs, in the infrastructure sector, and encourage private investment projects to issue REITs.

The country also vowed to promote the healthy development of platform economy and will continuously launch "green light" investment cases for platform firms. "Green light" investment refers to investment deals involving new technologies and services that can help empower the real economy.

Wang Shancheng, an NDRC official, said in a press conference on Tuesday that such measures aim to implement the guideline to promote the development of the private economy released last month and each measure has been appointed several ministries to take the responsibility to supervise and implement.

In addition, the newly-unveiled measures include more financial support for private companies. For instance, the country will extend supportive tools on inclusive loans for micro and small-sized enterprises until the end of 2024.

Also, the country will expand the new model of credit enhancement for private enterprise bonds between the central government and local governments to all types of private firms that meet the issuance conditions, aiming to form more demonstration cases as soon as possible.

Source: China Daily