The can-do gen­er­a­tion to the fore

Coun­try’s fu­ture rests in the hands of the bright and the young

China Daily (Canada) - - E-COMMERCE -

whole­hearted back­ing.

Fol­low­ing up on that, last year the govern­ment un­veiled dozens of mea­sures aimed at help­ing grass­roots en­trepreneurs, in­clud­ing giving them tax breaks and eas­ing their path to ob­tain fi­nance.

Lin Nianxiu, deputy direc­tor of the Na­tional De­vel­op­ment and Re­form Com­mis­sion, says the aim is to cut red tape and help the star­tups solve prac­ti­cal prob­lems.

China also an­nounced an In­ter­net Plus strat­egy, an ini­tia­tive that pro­motes the adop­tion of ad­vanced in­for­ma­tion tech­nol­ogy in tra­di­tional sec­tors in an ef­fort to stim­u­late the econ­omy.

In the first quar­ter of this year in­dus­trial out­put in the high-tech sec­tor rose 9.2 per­cent, com­pared with a rise of 5.8-per­cent in in­dus­trial out­put over­all, the Na­tional Bureau of Sta­tis­tics said. Rev­enue in the soft­ware in­dus­try grew 15.5 per­cent.

The Min­istry of In­dus­try and In­for­ma­tion Tech­nol­ogy says plans are afoot to make it eas­ier for in­ter­net star­tups to en­ter sec­tors such as manufacturing, ser­vices and lo­gis­tics to in­crease ef­fi­ciency and prod­uct qual­ity.

To pro­mote the growth of tech­nol­ogy star­tups, in­dus­try reg­u­la­tors say, faster and cheaper in­ter­net ser­vice will be pro­vided. The cen­tral govern­ment is also con­sid­er­ing a neg­a­tive list mech­a­nism to make it eas­ier for star­tups to do busi­ness with Sta­te­owned en­ter­prises.

A neg­a­tive list would spell out a small num­ber of busi­nesses or ser­vices that are closed to in­ter­net firms, and the busi­nesses that are not listed would pro­vide a happy hunt­ing ground.

A plethora of an­ti­quated in­dus­try reg­u­la­tions still pre­vent star­tups from pro­vid­ing IT ser­vices for govern­ment-backed projects and Sta­te­owned en­ter­prises. There has also been a lack of in­cen­tives to star­tups hun­gry for liq­uid­ity to bor­row money from banks at spe­cial rates.

Ven­ture cap­i­tal­ists have been a ma­jor fi­nan­cial source for Chi­nese star­tups. Pre­qin Ltd, a re­search firm in Lon­don, says ven­ture cap­i­tal firms in­vested in 1,555 deals in China last year, spend­ing $37 bil­lion, more than dou­ble the sum of the pre­vi­ous year.

Liu Dong, manag­ing direc­tor of Ac­cen­ture Tech­nol­ogy Labs in Bei­jing, says tech­nol­ogy in­no­va­tion is play­ing an in­creas­ingly crit­i­cal role in China as the coun­try looks for ways

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