Guangxi raises over $1b to promote industrial growth

Since the beginning of this year, Guangxi Zhuang autonomous region has raised more than 7 billion yuan ($1 billion) through multiple channels, reformed its financial support method, and accelerated the pace of fiscal expenditure to promote stable industrial growth in the region.

Guangxi has greatly reduced the burden on industrial enterprises as it implemented various preferential tax policies, regulated administrative fees and government funds, provided loan risk and credit guarantee risk compensation funds to SMEs, gave awards and subsidies to the listing and financing of enterprises, as well as reduced the cost of electricity. It is expected to reduce costs for industrial enterprises by more than 90 billion yuan by the end of the year.

Guangxi will give priority to financial incentives and policy support to: cities, counties, and districts with excellent annual industrial investment evaluations; key industrial projects with investment exceeding 100 million yuan; cities that have made outstanding contributions to the growth of industrial added value in the region; as well as top 10 counties (cities) in industrial added value.

Funds have been given to support key industries in Guangxi, such as the automobile industry and the steel industry. The region rewards domestic consumers for buying cars made in Guangxi, as well as gives financial subsidy support to eligible automobile and spare parts production and logistics. It also promotes the construction of the iron and steel base in Fangchenggang.

Guangxi raised a special fund to support industrial enterprises to expand investment, enhance innovation capabilities, and improve the development environment through free subsidies, discounted loans, and financial incentives.

In addition, Guangxi will speed up the cultivation of industrial enterprises above designated size and foster the development of modern industrial parks.