Shanghai, China's financial metropolis, has adopted measures to encourage private sector investment. These include attractive tax policy and reduced financial costs. Within the framework of these measures, there is also the encouragement of private firms to adopt uniform processes in their entry into the market and to direct them to large projects envisaged for the period of the 14th Five-Year Plan (2021-2025).
Official authorities will implement appropriate tax policy to encourage micro, small and medium-sized companies, as well as to create scientific and technological innovation, as well as provide cheap land. Again, the relevant authorities will expand the financing channels for private companies, create financial institutions and support projects with low financial costs.
With such appeals, private capital will be directed towards scientific and technological innovation projects, namely microchip, biomedicine and artificial intelligence. On the other hand, private capital is being asked to turn to digital infrastructure, including calculators and renewable energies.
Managers also took other measures to stabilize private investment in the real estate sector and to channel private capital into rural revitalization and social services such as health and education.
Gu Jun, Director of Shanghai City Development and Reform Commission, said that private investments in Shanghai in the first four months of the year increased by 19,8 percent compared to the same period of the previous year. He also stated that they will aim to play a more important role in the development path.