Guangzhou launches preferential policies to boost economic development

A batch of 48 preferential measures have been launched by the Guangzhou municipal people's government on March 3 on fighting the novel coronavirus (COVID-19), while making sure that the city can realize the annual socio-economic development goals at the same time.

The measures are expected to relieve the burden of 83.6 billion yuan ($12.03 billion) for local companies, estimated by the Guangzhou municipal development and reform commission.

An emergency loan transfer mechanism and inclusive loan risk compensation mechanism will be set up in Guangzhou to increase an overall working capital of 130 billion yuan for companies.

Companies producing the supplies and raw materials that were in urgent need for the epidmeic prevention and control efforts by measures like expanding production capacity and technical transformation can receive a subsidy of 50 percent of the total amount that they have devoted in purchasing new production equipment.

The government will coordinate with banks in Guangzhou to lower the cost rate, making sure the comprehensive financing costs of the operational loans of small and micro-sized businesses, as well as individual businesses are lower than that in 2019.

Micro, small, and medium-sized enterprises (MSMEs) in Guangzhou can be exempted from the cost of endowment insurance, unemployment insurance, as well as occupational injury insurance for up to five months.

Major construction projects in Guangzhou can receive a 10-day loan discount on the costs increased by the delay of resuming operation from Jan 31 to Feb 9 according to their actual completed investment amount and benchmark lending rate in the first quarter of 2020.

Special funds will be set up to establish a batch of major projects in areas, such as healthcare, material security, environmental construction, as well as transportation and logistics.

Starting from March to the end of this year, individual consumers purchasing new energy vehicles can receive a comprehensive subsidy of 10,000 yuan for each vehicle. Consumers that have replaced or scrapped used cars to purchase new vehicles meeting the National Emission Standard VI can receive a subsidy of 3,000 yuan for each vehicle.

Measures to support the development of the cultural tourism industry after the end of the epidemic will be launched in the future.

Companies participating in major economic and trade activities listed at the provincial or municipal level can receive a subsidy of up to 50 percent of the cost in renting booths, decoration, and labor. The subsidy for each company participating in one exhibition is up to 100,000 yuan.

Efforts will be made in improving clearance efficiency by measures like advanced declaration and simplified procedures.

A total of 40 million yuan will be devoted to support scientific breakthroughs in areas related to the control and prevention of the epidemic. A credit aid of up to 20 million yuan is available for high quality scientific small and medium-sized enterprises to boost the vitality of local innovation and entrepreneurship.

In addition, Guangzhou will look to improve the local business environment, releasing measures like simplifying processes for the examination and approval for companies, as well as online operations.

This English version is only for reference. To learn more, please refer to the authoritative Chinese version on gz.gov.cn.

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