Rugao in Nantong, Jiangsu province saw a significant increase in new high-tech enterprises last year, with 172 additions in 2023, bringing its total to 631 and marking the third consecutive year where Rugao outpaced other regions in Nantong as the top location for such growth.

This achievement is largely attributed to tax relief policies that Rugao has implemented effectively to support technological innovation.

Jiangsu Lixing General Steel Ball Co Ltd establishes a National Corporate Technology Center. [Photo/Nantong Daily]

Jiangsu Lixing General Steel Ball Co Ltd (JGBR) successfully established a National Corporate Technology Center last year. Such centers represent the highest-level and most influential platforms for technological innovation at the enterprise level in China.

Since 1997, JGBR has been investing heavily in building its technology center, importing advanced testing and production equipment from overseas, and collaborating with top universities such as Tsinghua University and Shanghai University. Over the past 35 years, their annual R&D expenditure has consistently accounted for over 4.5 percent of total sales revenue.

"Our research and development investment in 2023 amounted to 30 million yuan ($4.17 million). The preferential tax policies saved us nearly 10 million yuan in corporate income tax alone," explained Zhou Yu, chief financial officer of JGBR.

Cong Mingchang, director of the Rugao Science and Technology Bureau, stated that the increasing number of high-tech enterprises benefiting from tax relief policies has effectively stimulated R&D investment and innovation among local companies.

Zorrun Semiconductor is an SME in Rugao. [Photo/Nantong Daily]

Zorrun Semiconductor is a young small and medium-sized technology enterprise that can produce 6-kilowatt diamond production equipment and is currently focusing on breakthroughs to reach 10-kilowatt capacity.

"Last year, we enjoyed tax reliefs totaling 3.8 million yuan. This provided us with greater confidence and courage in our R&D investment," said Hong Wensheng, the company's financial director.

"High-tech enterprises are vital for developing new quality productive forces. Rugao will cater to the needs of enterprises and support them to enjoy the benefits of tax policies so as to fully stimulate innovation," said Chen Minghua, vice-mayor of Rugao.