Tax revenue data from 2015 show China’s emerging industries are seeing rapid development as taxes collected from those sectors, such as high-end manufacturing, and information industries, are growing faster than the national tax revenue’s 6.6 percent growth.
The credit goes to “mass entrepreneurship and innovation”, a government strategy to boost the world’s second-largest economy amid downward pressure.
With such encouragement, 12,000 enterprises were registered daily in 2015, which means eight enterprises were born each minute last year.
The structural change of China’s tax revenue indicates that the country’s emerging industries are taking place of the traditional ones to become the main tax-generating industries.
The released data of national tax revenue show taxes from high-end manufacturing, medicine, scientific research and technology service, and information industries are growing fast.
Despite the downward pressure and overcapacity, some high-end manufacturing industries are growing at a high speed.
Started in 2005, the “Made in China 2025” strategy is transforming China’s manufacturing from an investment and low-cost manufacturing-driven one to one that is promoted by innovation and production efficiency.
An official from the State Administration of Taxation said that tax revenue from electric machinery and equipment industry, for instance, reached 187 billion yuan ($28.4 billion), an 8.3 percent growth, 3 percentage points higher than the tax growth of overall manufacturing industries.
Tax revenue growth from the service industries last year accounted for 80 percent of the growth of the 11 trillion yuan in national tax revenue.
“Tax revenue of service industries saw a 7.6 percent growth in 2015. Among the growth industries, leasing industry and business service industry are rapid-developing ones, which paid 582.2 billion yuan and grew 23.8 percent last year,” according to the official from the State Administration of Taxation.
Among emerging industries, the information industry witnessed the fastest growth in terms of tax payment, becoming the main force to adjust the economic structure. In 2015, the tax revenue from software and information services reached 121 billion yuan, a 21.2 percent growth.
In addition, both tax revenue from medicine and scientific research and technology service industries grew 13 percent.
Jiang Zhen, an economic researcher at the Chinese Academy of Social Sciences, said the development shows that the government’s innovation-driven strategy and measures to support mass entrepreneurship and innovation are effective.
He also said that technology research and development as well as innovation will become cheaper for enterprises when labor costs are rising, which is also a process of supply-side optimization.