On May 19, 2015, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology     , the Ministry of Commerce and the State Administration for Industry & Commerce jointly announced that financial funds will be integrated to set up demonstration cities for developing bases for startup and innovation of small and micro enterprises(SMEs), and rewards of RMB600 or 900 million will be granted to the demonstration cities.

 

The Ministry of Finance said that this leads to two changes: the change from support to projects of SMEs to support to the demonstration cities to highlight the dominant role of local governments in the organization and implementation of related projects and simplify related administrative procedures; the change from promotion of projects by department and industry to joint implementation by the five departments mentioned above to give full play to the functions of these departments through cooperation.

 

The government will provide financial rewards and support for the demonstration cities. During the demonstration term (three years), reward up to RMB900 million will be granted to demonstration cities with independent planning and those as provincial capitals; reward up to RMB600 million will be granted to general demonstration cities, including districts and counties under municipalities directly under the central government. The demonstration cities may use the rewards in accordance with their planning and arrangement.

 

Source: Guangzhou Daily, May 20, 2015