Huangpu releases preferential policies for local companies

A total of eight preferential policies were released by Guangzhou's Huangpu district on Feb 5, making it a pioneer among the national development districts of China.

The policies are expected to help local companies to deal with their most pressing issues in areas such as rent reduction, subsidies and innovation support.

The policies will be effective for the upcoming six months.

Companies resuming production before Feb 10 to produce emergency supplies for novel coronavirus prevention and treatment such as protective masks, protective clothing, goggles and thermometers can get a one-time reward of 200,000 yuan ($28,560.77).

Companies purchasing new equipment for the above production can get a subsidy of 80 percent of the purchase amount, with the subsidy for each company being up to 1 million yuan.

Supermarkets and large-scale business-to-customer (B2C) retailers selling emergency supplies can get a one-time reward of 200,000 yuan.

To ensure that companies can resume production successfully, platforms have been established which give priority to those companies in the purchasing of supplies including masks, thermometers and disinfectant.

Those companies whose annual production in 2019 reached over 10 billion yuan, 5 billion yuan and 1 billion yuan can get a one-time reward of 5 million yuan, 2 million yuan and 500,000 yuan respectively, as long as their output value in the first quarter of 2020 grows by over 10 percent year-on-year.

Companies making outstanding contributions to epidemic prevention such as developing effective medicine or vaccines will be rewarded 10 million yuan.

Projects set up at national, provincial and municipal levels aiming to make breakthroughs in epidemic prevention and treatment will get, respectively, a 100 percent, 70 percent and 50 percent financial subsidy. This subsidy is up to 50 million yuan, 30 million yuan and 10 million yuan each.

Measures will be carried out for local companies to deal with their most pressing problems. These measures include floating loan rates, simplifying approval processes and offering more support for those companies that are managing the new generation of information technology, artificial intelligence, biomedicine, and new energy as well as new materials.

Companies with a newly-upgraded scale in the first quarter of 2020 will get a one-time reward of 1 million yuan.

Companies renting the premises of State-owned companies subordinated to the local district will be freed of one-month rent, and the rent for upcoming two months will be halved.

Small and medium-sized enterprises with participating insurance can get a subsidy of 50 percent of their reward for realizing no layoffs or fewer layoffs in 2019, if they continue to achieve no or fewer layoffs.

These companies will get a one-time pre-job training subsidy of 500 yuan for each new staff member working for more than three months.

Innovation incubators above district level are being encouraged to bring down the rents of local companies. Those reducing rents for companies, accumulating to over 1 million yuan, can get a one-time reward of 500,000 yuan.

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