Taipei, Wednesday, April 26, 2017 14:19 (GMT+8)
showers
Taipei
21°C
China government looks to push inward
Michael McManus, DIGITIMES, Taipei [Wednesday 24 August 2011]

A recent article from the state-run China Daily shows how the China government is touting the benefits of investing in the Chongqing economic zones, with the article basically providing a laundry list of the tax incentives and subsidies for companies investing in the region. It comes as no surprise that China is marketing the region through the state-run media, and a recent Digitimes Research report outlines the strategies China's government is using to encourage development of the electronics manufacturing bases in China's central and western regions.

According to the China Daily article, companies that invest in the Chongqing Zone qualify for a favorable tax rate of 15%, compared to the standard 25%, while manufacturing and IT companies also qualify for land incentives, such as subsidies for land purchases, factories. The local government also offers a subsidy (equivalent to 25% of the annual interest rate) on bank loans. Hi-tech firms can also qualify for a grant of up to CNY3 million (US$469,000) after a year of operation.

According to Digitimes Research, China's recently published 12th Five Year Plan clearly states the government's intention to address the neglect of the central and western regions, while expanding domestic markets and reforming the country's existing industrial strategy.

Government initiatives are not limited to the tax breaks and subsidies listed in the article. Digitimes Research outlines how transport infrastructure is gradually being put in place and that central and western regions will be the most important manufacturing sites for the coming decade. The electronics industry has by no means been excluded from this trend, with some major notebook manufacturers already sourcing a significant proportion of their shipments from Chongqing and Chengdu, the major cities in the central and western regions.

Moreover, the pace of development in these areas will only increase as time goes by and the regions are expected to claim three of China's 10 core cities for the ICT industry for the next 10 years.

Topics: Page 2

Realtime news
  • Digitimes Research: Biometric sensor shipments to see CAGR of over 30% from 2017-2020

    Bits + chips | 2h 39min ago

  • Taiwan market: Bank launches AI financial advisory services

    IT + CE | 2h 45min ago

  • GCL-Poly fails to team up with Motech, NSP

    Green energy | 2h 58min ago

  • Taiwan server makers see reshuffle of orders from Microsoft, Facebook, Google

    IT + CE | 3h 7min ago

  • PTI looks to sequential revenue growth through 4Q17

    Bits + chips | 3h 10min ago

  • AMD unveils Radeon Pro Duo graphics card

    IT + CE | 3h 14min ago

  • 60.16 million LCD TV panel shipped globally in 1Q17, says WitsView

    Displays | Apr 25, 22:29

  • Micron, Microsoft announce collaboration

    Bits + chips | Apr 25, 22:17

  • Merry reports strong EPS for 1Q17

    Mobile + telecom - Newswatch | Apr 25, 22:13

  • DJI showcasing drone accessories at NAB Show 2017

    Before Going to Press | Apr 25, 21:31

  • Arima Optoelectronics to sell part of stake in Arima Lasers

    Before Going to Press | Apr 25, 21:21

  • Realtek seeing customers slow down pace of orders

    Before Going to Press | Apr 25, 21:18

  • Digitimes Research: Panasonic, Sony, Toshiba launch OLED TVs in Japan

    Before Going to Press | Apr 25, 21:18

  • China market: Flat panel makers slash prices to win orders

    Before Going to Press | Apr 25, 21:15

  • PTI eyeing to become largest backend house in Japan

    Before Going to Press | Apr 25, 21:14

  • Nexcom International suffers net loss per share of NT$0.31 for 1Q17

    Before Going to Press | Apr 25, 21:13

  • Motech Industries application to issue new shares denied

    Before Going to Press | Apr 25, 21:13

  • 49.3 million LCD TVs shipped globally in 1Q17, says Sigmaintell

    Before Going to Press | Apr 25, 21:11

Pause
 | 
View more

Global notebook shipment forecast, 2017 and beyond

RESEARCH EXTRAS | Jan 25, 14:34

Digitimes Research estimates that 2016 was another down year for the global notebook market, with shipments dipping below 150 million. While the market will continue shrinking in 2017, the drop will be much less dramatic, as Windows 10 adoption in the enterprise...

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Global tablet market – 4Q 2016

GLOBAL TABLET | Mar 9, 14:10

In the fourth quarter of 2016, global tablet shipments reached 52.25 million units, showing on-quarter growth of 14.3%.

Taiwan handsets – 4Q 2016

TAIWAN MOBILE DEVICE | Mar 3, 14:43

Taiwan's presence in the global handset market continues to shrink. Its share of global shipments is expected to drop below 2% in the first quarter of 2017.

China smartphone AP shipments – 4Q 2016

CHINA SMARTPHONE AP | Feb 24, 14:04

Digitimes Research forecasts smartphone AP shipments to China in first-quarter 2017 will show an on-quarter drop of 15.9%.

UMC
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.