Taipei, Friday, October 20, 2017 11:49 (GMT+8)
cloudy
Taipei
25°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.

Realtime news
  • Taiwan attracts foreign direct investment of US$5.2 billion in January-September

    IT + CE | 1min ago

  • White-box smartphone players adopting new innovations to enhance competitiveness

    Displays | 27min ago

  • IC makers maximize 300mm, 200mm wafer capacity, says IC Insights

    Bits + chips | 1h 30min ago

  • Taiwan market: Perobot sets up first Pepper Lab

    IT + CE | 1h 40min ago

  • Asustek, Gigabyte reorganization efforts to bear fruit in 1Q18

    IT + CE | Oct 19, 17:43

  • ProLogium, WM Motor partner to develop LCB-powered vehicle

    Before Going to Press | Oct 19, 22:05

  • Leadframe maker SDI resumes production at China plant

    Before Going to Press | Oct 19, 22:04

  • Backend houses expect rising memory demand for servers and datacenters

    Before Going to Press | Oct 19, 22:03

  • UREC seeking partnerships with local silicon wafer suppliers

    Before Going to Press | Oct 19, 22:00

  • Taiwan foundries enjoying rising orders from fabless firms

    Before Going to Press | Oct 19, 21:57

  • White-box notebook makers showcasing ultra-thin and 2-in-1 devices in Hong Kong

    Before Going to Press | Oct 19, 21:53

  • Taiwan analog IC firms to enjoy strong 4Q17

    Before Going to Press | Oct 19, 21:52

  • Epistar sues All Star Lighting Supplies for patent infringement

    Before Going to Press | Oct 19, 21:51

  • TSMC raises IC market forecast for 2017

    Before Going to Press | Oct 19, 21:49

Pause
 | 
View more

China AMOLED panel capacity expansion forecast, 2016-2020

RESEARCH EXTRAS | Jun 8, 15:37

This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by China's makers.

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | May 31, 10:20

According to surveys and analyses conducted by Digitimes Research, revenues generated from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors rose 4.8% on year to reach NT$555.8 billion (US$18.79...

Taiwan handsets – 2Q 2017

TAIWAN MOBILE DEVICE | Aug 24, 14:56

The revival of the Nokia brand by HMD Global is benefitting Taiwan's handset manufacturing sector. Orders for Nokia-branded feature phones have become a main growth driver for Taiwan's handset shipments.

China smartphone market and industry – 2Q 2017

CHINA SMARTPHONE | Aug 18, 14:38

Digitimes Research estimates smartphone shipments to the China market in the second quarter of 2017 totaled 94.1 million units, maintaining a similar level to that seen in the first quarter of 2017 but down 11.8% on year.

Taiwan LCD TVs – 2Q 2017

TAIWAN DISPLAY SYSTEM | Aug 14, 11:13

Taiwan TV makers' shipments to some of their China-based clients were weakened by rising LCD panel prices in the second quarter of 2017, during which shipments to China's financially-troubled LeEco had mostly stopped.

Global notebook shipment forecast, 2017 and beyond
Global AP demand forecast, 2017-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Taiwan server shipment forecast and industry analysis, 2017

    Digitimes Research estimates that revenues from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors reached NT$555.8 billion in 2016 and the amount is estimated to grow 5.9% on year in 2017.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.