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Chengdu releases policy to help new economy drivers take flight
1/11/2018


Chengdu releases policy to help new economy drivers take flight
Authors: China Daily

Chengdu, capital of southwest China's Sichuan Province, plans to construct a new economy industrial system that can compete on the global stage and promote regional development.
According to an official document released by the local government earlier December 2017, Chengdu will focus on developing new economy. The document, which also lists representative industries in each category, is the first of its kind in China.
Zhang Xinyu, director of Chengdu's new economy committee, said the document defines the new economy from Chengdu's perspective.
The city's goal is clear: By 2020, its new economy is expected to stand at the national forefront. It will have more than 100,000 new-economy-related companies, seven unicorn companies and over 60 potential unicorn companies.
Within that time frame, Chengdu will become a pioneer and an ideal city for the promotion of the new economy, which can explore many application possibilities, attract assets and professionals, and innovate its business environment, according to the plans.
Since new economy-related companies are often asset-light with both high growth potential and risk, the local government plans to welcome more venture capital and strengthen resources integration.
The document stipulates that the government will provide newly established or relocated domestic and overseas financial institutions allowances of up to 40 million yuan ($6.1 million), to enlarge the local financial scale.
Credit rating agencies are encouraged to provide credit ratings for new economy-related companies with allowance from the government, as part of efforts to improve their ability to attract investment.
Huo Weidong, president of Beijing Geely University, said enterprises and investors would have more faith in the city because of these policies and services.
According to the document, the number of innovation service institutes is expected to surpass 400 by 2022. Investment in research and development across the city is forecast to reach 4.3 percent of its GDP.

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