China's State Council issued in Beijing Sunday incentive policies encouraging scientific and technological innovation.

The incentive policies target at creating friendly environment for carrying out the National Guidelines for Medium- and Long-term Plans for Science and Technology Development from 2006 to 2020.

The incentives include promised increase of research and development expenditures, favorable taxation policies towards innovation-oriented enterprises, financial supports and governmental procurement.

In addition, specific policies will also be worked out for licensing of alien technologies, intellectual property protection, human resources, improvement of public science awareness and favorable policies for state key research labs.

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China to set up national committee overseeing mergers of hi-tech firms

China is going to establish a special committee to oversee Chinese-foreign mergers of hi-tech enterprises in order to protect China-grown intellectual property.

According to new incentive policies encouraging scientific and technological innovation which were issued by the State Council Sunday, the special committee will review and investigate such mergers and technology exports.

China to tilt governmental procurement to domestic hi-tech products

China said here Sunday that domestic companies will be given priority in government procurement of high technologies and related products.

According to new incentive policies aimed at encouraging scientific and technological innovation, the State Council is urging the Ministry of Finance to draft a catalog of China-made innovative technologies and products. They will be put on a priority list and distributed to governmental buyers.

Nation encourages development of venture capital firms

China's State Council said in Beijing Sunday that it will encourage state and local governments and their affiliates to set up venture capital firms to finance innovation-oriented start-ups.

According to new financial incentive policies aimed at stimulating nationwide scientific and technological innovation, the State Council also encourages the private sector to invest in research and development of start-up companies.

Favored taxation policies set for knowledge-based enterprises

The Chinese government announced Sunday that it has set favored taxation policies for the nation's knowledge-based enterprises.

According to the incentive policies, which are aimed at encouraging scientific and technological innovation, R&D expenditures can be deducted from annual tax returns at a rate of 150 percent.

China to increase research, development expenditures

China announced Sunday it will increase national research and development expenditures year by year until expenditures are equal to 2.5 percent of the gross domestic product in 2020.

According to its incentive policies encouraging scientific and technological innovation, the State Council said overall investment in research and development needs to be enhanced significantly in order to make China one of the world's most innovative research powers by the year 2020.

China issues S&T development guidelines

The State Council issued in Beijing Thursday the guidelines on national medium- and long-term program for science and technology development (2006-2020), which sets the proportion of research and development expenditure in the gross domestic product at 2.5 percent.

By 2020, the progress of science and technology will contribute at least 60 percent to the country's development. Meanwhile, the country's reliance on foreign technology will decline to 30 percent and below. The number of patents granted to Chinese nationals and the introduction of their academic essays are expected to rank among the first five throughout the world.