Dongguan to Cut Red Tape, Slash Energy Prices, Give Money to Private Firms
Zhang Yushuo
DATE:  Nov 15 2018
/ SOURCE:  Yicai
Dongguan to Cut Red Tape, Slash Energy Prices, Give Money to Private Firms Dongguan to Cut Red Tape, Slash Energy Prices, Give Money to Private Firms

(Yicai Global) Nov.15 -- The southern city of Dongguan has stepped up its support for private firms to help them upgrade their business.

Dongguan released 160 initiatives in its policy plan, local newspaper Dongguan Daily reported on Nov. 13. Over 130 of them involved innovation, and more than 90 of those were new policies, while the rest were updates to existing ones.

The industrial city in Guangdong province will reduce red tape, facilitate its private firms' abilities to transform and make more profits, and give room for them to grow in a good entrepreneurial environment.

Policies aiming to promote company transformations will catalyze about CNY50 billion (USD7.2 billion) worth of value-added services from 2018 to 2020. Private companies may reduce their operating costs up to CNY30 billion. Those that qualify for discounted insurance plans can save up to CNY3.26 billion (USD468.8 million) each year in costs. They may also pay 10 percent less for electricity than now, which can release CNY1.7 billion in funds.

The municipal government will spend more than CNY10 billion (USD1.4 billion) in the next three years to enhance its private companies' marketization, talent acquisition, and tech innovation. It will also give more than CNY40 billion in financial support to them during this time.

Inspired by the central government's Greater Bay Area plan to integrate Guangdong, Hong Kong and Macau into one business hub, Dongguan is also shifting focus to its environment. The city has launched initiatives such as Dongguan Beatification and Fight for Environmental Protection to improve the living standards of its people in about three years.

The city's ongoing and planned infrastructure projects in the next three years total CNY270 billion (USD38.8 billion), according to preliminary estimates.

Editor: Emmi Laine

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Keywords:   Dongguan,High Tech,Guangdong