The Guangdong Government revealed a new set of measures yesterday (Aug 25) which will help manufacturing enterprises in Guangdong lower their costs by as much as 260 billion yuan between 2017 and 2020.
Zhong Xuanhui, Deputy Secretary General of Guangdong, said these new measures showcased Guangdong’s efforts in following President Xi’s initiative, and pushing forward the province’s industrial reform and real economic development.
“Guangdong’s Party Chief, Hu Chunhua, and Guangdong’s governor, Ma Xingrui, both attach great importance to formulation of these measures,” said Zhong Xuanhui, “they have organized lots of meetings looking for advice from enterprises and relevant departments.”
The measures will lower manufacturing costs across 10 significant areas including taxation, land cost, utilities, social insurance, transportation, with the aim of helping enterprises in Guangdong to accelerate their development.
Taking electricity costs as example, the measure will lower the retail price to an average of 0.06 RMB per kilowatt-hour, and is expected to cut a total of 28 billion RMB of expenses in 2017 alone.
“Once the measures are implemented, our company will save 300 thousand RMB each year in terms of electricity costs ,” said Zhong Yonglong, General Counsel of Dongguan Hirosawa Auto., “cutting this expense, we can afford to hire more technicians and buy more equipment.”
The new measures will also help manufacturing enterprises facilitate structural reform, offering support to key industries such as advanced technology, new energy and bio-medicine. The measures also provide subsidies for technology upgrades and advantageous policies that offer assistance to SMEs with financing issues.
