China will soon announce a plan to invest a massive $1.5 trillion over five years, with the goal of transforming seven industries -- including biotechnology, alternative energy, IT, materials, science, alternative-fuel automobiles, and clean tech -- into world-class leaders in innovative technology.
Unlike most of the strategies presently in place for creating innovation, the plan does not call for huge government subsidies but relies instead on creating incentives for bank lending, corporate investment and help from local governments. It is thought that China will cut the income tax rate in half – to 7.5% – for investors in those industries.
Reuters broke the news of the new initiative, citing anonymous sources.
The new investment proposal must be approved by the Central Economic Work Conference, an annual meeting that brings together top leaders to map economic policies for next year, which is scheduled to take place later in December.
To read the full, original article click on this link: China Considering $1.5 Trillion Plan to Stimulate Innovation? -- Seeking Alpha
