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China / Innovation

A host of new measures will aid startups

By GAO YUAN (China Daily) Updated: 2015-06-06 07:10

China has announced nearly 100 measures to help grass-roots entrepreneurs get more loans, pay less tax and even receive free psychological counseling when their startups fail, top officials said on Friday.

The measures, approved by the State Council earlier this week, aim to help all the emerging companies solve practical difficulties and "clear the unnecessary policy barriers" inside government organs, said Lin Nianxiu, deputy director of the National Development and Reform Commission.

He added that a major task of the policies is to ensure that local startups can better access loans, government subsidies and other supportive services.

The stock market watchdogs are considering a new policy that would allow not-yet-profitable Internet and high-technology firms to be listed to raise capital, Liu said

Startups will also be able to receive equity crowd-funding as the country mulls a pilot project that eases the restriction on the subject, said Zhang Xiaojun, spokesman for the China Securities Regulatory Commission.

Other favorable measures include offering affordable land use, power and Internet service prices, according to the NDRC.

Cao Jianlin, vice-minister of science and technology, called for more attention on college students-turned-entrepreneurs and the likelihood of failures.

"Universities should offer entrepreneurship courses that teach basic financial and communication knowledge," Cao said.

He added that there are already some counseling sessions in place to prepare the entrepreneurs for a possible failure in business.

"The students have to know that not every startup can survive, and bumps in business are inevitable", and the government should help them get through the difficulties, Cao said.

The central government boosted its encouragement for people to set up their own businesses and invent new business models and products at the beginning of this year.

But the vibrant business innovation also created new areas for the authorities to regulate.

For example, the emerging ride-hailing applications are giving transportation authorities a headache because private cars, which are not allowed to provide for-profit trips, are providing commercial rides using the apps.

Ji Chengyuan, director of the department of high-tech industry under the NDRC, said policymakers should tolerate new business models and create more room for their development.

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