Dongying promotes supply-side reform

Dongying city of Shandong province has adopted a number of policies to promote the supply-side reform.

Reduction and simplification

The city has improved the development environment by carrying out preferential taxation policies, and reducing and exempting part of administrative charges to further ease the burden of small- and medium-sized enterprises and activate market dynamics.

It also simplifies the working procedure by abolishing administrative approval in four facets and applying one-stop services, in a bid to shorten the process chain and increase effectiveness.

Entrepreneurship and innovation

Dongying has implemented a number of preferential taxation policies to encourage entrepreneurship and innovation with subsidies for one-off entrepreneurship, house rental, social insurance, pre-post training, small loans, conferences and exhibitions, etc. It also supports innovation and entrepreneurship training and practice to nurture new forces of growth.

Dongying granted 1.08 billion yuan worth of small loans in 2015 and offered financial subsidy of 87.14 million yuan to help lower the costs of local entrepreneurship and innovation.

The city expanded the range of subsidization from local citizens with hukou to permanent residents or companies registered or established in the city, in a bid to benefit more.

Urbanization and industrial optimization

Dongying enhanced financial support by earmarking 300 million yuan to support modern agricultural demonstration zones and leading agricultural companies to improve quality and effectiveness. It also continued to promote the upgrade of traditional industries and the development of emerging industries.

The city rolled out a cost sharing mechanism, specified responsibilities of the government, enterprises and individuals, established three platforms for government investment, bank-financing and private capital, in a bid to solve the financing problems.

It innovated investment and financing mechanisms, received 32 billion yuan worth of loans from China Development Bank and the Agricultural Development Bank of China for irrigation and water conservancy programs and other key infrastructural constructions. Dongying established a government-invested fund of 12 billion yuan and three sub-funds value 400 million yuan in total, in a bid to support urbanization and agricultural infrastructure.

By the end of 2015, the rate of urbanization in Dongying reached 62.08% and ranked 16th in terms of urbanization quality among Chinese prefecture-level cities.