State Council to push more innovation
China Daily
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Visitors to the Light of the Internet Expo, part of the World Internet Conference, try a wearable musical device using virtual reality technology. (Photo: China Daily)

China will issue more measures to further implement the country's innovation-driven development strategy and incentivize business startups and innovation nationwide, the State Council's executive meeting chaired by Premier Li Keqiang decided on Wednesday.

"Our efforts in support of business startups and innovation have effectively boosted employment and stimulated innovation. Under the current situation, business startups and innovation can make a special difference in spurring market vitality and supporting the employment of key groups of people," Li said.

The Wednesday meeting decided on more steps to drive business startups and innovation.

The important role of business startups and innovation will be harnessed to support employment, including creating more jobs that suit the needs of key groups of people, such as college graduates and demobilized military personnel. The government will work to lower institutional transaction costs, and draft and issue regulations on improving the business environment.

"Our initiative of encouraging business startups and innovation needs to play a bigger role in driving technological innovation," Li urged, "It will also help incentivize innovation in both application and basic research."

Support will be given to innovation and entrepreneurship centers in undertaking pilot programs in the approval and implementation of science and technology projects, rights confirmation of research findings and commercialization of research results.

The meeting also decided to build platforms for business startups and innovation, and to promote the integrated development of companies of different sizes.

Incentive mechanisms regarding stock rights and remunerations will be further refined to promote innovation by enterprises of all types.

"The government needs to refine policies in supporting business startups and innovation-oriented companies, and exercise accommodating and prudent regulation. We need to promote the integrated development of companies of different sizes," Li said.

The Internet Plus model will be upgraded. Efforts will be made to accelerate the development of industrial internet and promote broader application of the Internet Plus model in medical care, elderly care, education and other social sectors.

A higher ratio of nonperforming loans to micro and small firms will be allowed. The NPL ratio of such loans will be relaxed to no more than 3 percentage points higher than the overall NPL ratio from the current 2 percentage points. Venture capital firms will receive support in financing through bond issuance.

"Entrepreneurial activities and innovation will bolster the development of the Internet Plus model. This will help foster new drivers of growth, deliver better services, boost consumption and expand employment," Li said.