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State Council Passes Measures to Support IC Industry

Tencent, 1/13/11

At a State Council executive meeting presided over by China's State Council Premier Wen Jiabao yesterday, six measures were passed to stimulate the development of the software and IC (integrated circuit) industries. The measures are as follows:

1. The central government budget will add items for investment in supporting technology advances or upgrades for qualifying IC enterprises, rewarding and supporting enterprises' cross-regional reorganizations and acquisitions, and promoting enterprises' use of intellectual property and other intangible assets as collateral for loans in order to expand enterprises' finance channels.

2. Major support will be provided for key software and IC technology R&D, and increased informatization and application promotional efforts will be made for enterprises possessing original technology IPR.

3. Preferential VAT policy for software products, and tax breaks on operating taxes and revenue taxes for qualifying enterprises will continue to be applied.

4. Improvements to R&D employee incentive mechanisms, encouraging qualifying universities and IC enterprises to jointly establish microelectronics institutes, and increased recruiting of senior personnel from overseas will be made.

5. Further promotion of legitimately licensed software, regulation that government offices use licensed software, and guidance of enterprises and the public at large to use licensed software will be implemented.

6. Increased anti-monopoly efforts and improved import/export support policies will be made.

The meeting called on relevant governmental departments to oversee detailed implementation.

Keywords: government policy government support Wen Jiabao hardware export import regulation tax IPR State Council IC intellectual property R&D

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