Plans to Encourage Investments for Small Companies in China

Plans-to-Encourage-Investments-for-Small-Companies-in-China.jpgChinese officials plan to introduce new policies to encourage growth. These are mainly focused on helping small and micro businesses in China and, for this purpose, the Chinese government plans to set up an additional fund, amounting to approximately 60 billion Yuan (almost 9.5 billion $). If you own a small company, the experts at our law firm in China can help you with additional information about accessing special funds for enterprises.

Measures for boosting small businesses

The national fund designated for small and micro companies in China is just one of the planned measures to boost growth in the country. In addition to this, the Government plans to lower the initial capital requirements for fixed-asset investment projects. This has been recently decided and is awaiting implementation.
The Chinese government will invest nearly 15 billion Yuan in the fund for small companies and the rest of the amount will be collected from private and state owned companies, as well as financial institutions and local governments. The fund’s main purpose will be to support small and micro businesses in the initial stage of their development and act as seed investment.

Lower initial capital for certain investments

The Chinese government plans to reduce the mandatory initial capital for certain types of projects. Among the ones that will benefit from a reduction are those related to the construction of ports, inland navigation and airports. The reduction will have a value of 5%, from 30 percent to 25 percent.
Projects related to the construction of railways, highways or urban subways will also benefit from a reduction - from 25 percent to 20 percent. Projects that involve working in the steel, cement or aluminium industry will not benefit from these reductions.
These pro-growth policies announced by the Chinese government are designed to boost factory activity in the country and improve the economy. If you are a foreign investor interested in setting up a transport company in China or if you want to activate in the import/export sector, you can contact our law firm in China