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Inner Mongolia policies set to ramp up industrial economy

2022-05-24 (chinadaily.com.cn)

North China's Inner Mongolia recently launched 52 policies – designed to boost the growth of its industrial economy.

The Inner Mongolia Autonomous Region Action Plan for Promoting Steady Growth of Industrial Economy was jointly launched by Inner Mongolia’s 12 government departments.

It involves such areas as finance, tax, financial credit, supply, prices, investment, foreign trade and foreign investment, technology, as well as land and energy use.

To reduce the tax burden on businesses, the plan proposes to increase the pre-tax deduction for equipment and appliances for small and medium-sized enterprises; extend the policy for deferred payments of taxes and fees; and implement reduction and exemption policies on six taxes and two fees for small and micro-sized enterprises.

A reduction of the social security burden on enterprises and a reduction and exemption from vehicle tax for new energy vehicles are also included.

In response to the difficulties faced by the high-cost financing of enterprises, the plan encourages banking institutions to roll out assessment constraints to support the development of the manufacturing industry and to tilt more credit resources towards the industry.

It also launches preferential policies to support the construction of major projects for carbon emission reductions, as well as the clean and efficient utilization of coal.

To expand effective investment and stabilize foreign trade and foreign investment, the plan calls for speeding up the establishment of the first 12 industrial chains in the region. It also calls for improving basic industrial capabilities such as core basic parts and components, advanced basic technology and key basic materials.

Elsewhere, it requires a boost to the construction of industrial clusters involved in green agriculture, animal product processing, new energy, new materials, new chemicals, modern equipment manufacturing, biomedicine, the digital economy and modern services.

Moreover, the plan encourages qualified financial institutions to increase their support for cross-border e-commerce enterprises and foreign trade comprehensive service enterprises, as well as for big logistics enterprises.

Additionally, the plan calls for actively participating in the revision of the "Catalogue of Industries Encouraged for Foreign Investment (Inner Mongolia Part)".

This policy aims to guide foreign investment in the fields of high technology, energy conservation, environmental protection and high-end manufacturing.