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Nation confident on 2020 innovation target
By Wu Chong and Jiao Xiaoyang (China Daily)
Updated: 2006-03-11 06:48

Fang said the tax allowance will help reduce the financial risk of research-oriented companies and catalyze the emergence of more innovative firms.

Besides, the new policy encourages companies to accelerate depreciation of research-related facilities.

Zheng Chaocai, a tax official in Xiamen, Fujian Province, said the policy gives companies more tax preference. He called it a breakthrough in the country's tax policy.

Beijing Vimicro Corporation said it is expected to double its sales income with the help of the tax incentives.

At the end of last month, the government released a 58-point package of policies to help carry out its medium and long-term science and technology development programme.

One of the highlights is to allow China Development Bank to issue loans with low interests to high-tech companies as an investor, Fang said.

The bank has already started 50 such projects by investing 5 billion yuan (US$ 625 million) altogether.

During the press briefing on Friday, Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, unveiled China's plans to build many major technological infrastructure projects in the next five years.


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