China expanding Shanghai FTZ to attract tech firms
SHANGHAI - China's State Council has issued a plan for a newly-added area to the six-year-old Shanghai Free Trade Zone, touting preferential tax and supportive policies to attract high-tech companies.
In contrast with other sections that are designed to build an "international high-standard free trade zone", the new Lingang area will focus on building a "special economic function zone" with strong global market influence.
Enterprises in key industries -- such as integrated circuits, AI, biomedicine and civil aviation -- will enjoy a 15% income tax rate for the first five years, compared with the standard 25%.
Meanwhile, Huawei is reportedly planning to inject USS1.4 billion into a new research and development centre in Shanghai's Qingpu district.
The new plan is said to align with the Chinese Government's repeated calls for self-reliance on key technology.
With a total area of about one square kilometre, the centre will reportedly carry out R&D in areas including chips for different devices, wireless networks, and the Internet of Things (IoT).