Gu Dawei, a deputy director from China's National Development and Reform Commission, says the technology industry should expect the issuance of up to 100 documents and policies regarding innovation this year to improve the business environment and enhance innovation.
Gu made the remarks this past weekend in Hangzhou during a State Council briefing.
The 100 documents will be issued in two schedules, with the first batch of 30-40 files to be launched in June 2006.
According to Gu, these policies will cover tax stimulation, finance, investment and government procurement. Technology enterprises will be exempt from paying income taxes in their first two years of operation and only pay income tax at a rate of 15% afterwards.
In addition, no duties or value-added tax will be charged to enterprises who import equipment and raw materials from abroad for key state projects.
Finally, the government will provide sponsorships and bank loans to encourage high-tech enterprises' innovative efforts.