The can-do generation to the fore
Country’s future rests in the hands of the bright and the young
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