Foshan ushered in the first real-time transfer funding policy in China

On April 23rd, Foshan held a kick-off conference for its ground-breaking real-time transfer funding policy targeting enterprises, as addressed by Guo Wenhai, Deputy Secretary of the Foshan CPC Party Committee and Acting Mayor.

A kick-off conference held for Foshan’s real-time transfer funding policy targeting enterprises (Photo by Foshan Daily)

China’s first policy to fund enterprises in “seconds”

On the conference, Secretary Guo shared in-depth insights into a highly effective funding model that features “real-time transfer” and “direct transfer at a prescribed time”, before he proceeded with announcing the five subsidies where the model will be first carried out - Hi-tech corporate R&D, gas consumed by industry, demonstrative corporations in intellectual property, and patent-awarded projects. Altogether, the subsidy involved will reach 500 million yuan and about 8,000 companies will be benefited. It is expected that Foshan will put 2 billion yuan of real-time transfer funding in 2021, with follow-up policies including rewards for enterprises transforming from Small- and Micro-sized ones to those Above Designated Size and enterprises certificated as Hi-tech Enterprises.

Foshan experience: innovate government services for enterprises

Foshan is a major manufacturing city, and it is home to a strong private economy. Metaphorically, if the city were a kid, then enterprises would be his 'breadwinner'. In recent years, Foshan has made continuous explorations on "direct transfer" of government subsidies towards individuals and enterprises. In the past, in order to receive subsidy, they have to report to the higher authorities at different levels for approval, which is now replaced by digital platforms that made declarations easier, procedures simpler, and payment less time-consuming.

Corporate delegate benefited by the policy (Photo by Foshan News)

Every progress has a lot to do with the application and innovation of big data and a will to transform government services in Foshan. In declaration process, the platform will automatically match corporate information, which means enterprises don't have to submit information again; in review process, a real-time online system will work to approve those meeting the policy conditions; in payment process, the system will create a seamless link to payment platforms so that enterprises can be subsidized right away with no paperwork submitted, no hassles and no contact.

All-round support for enterprises to “go digital”

Next, Foshan will reserve more than 10-billion-yuan funding to support corporate digital transformation, which will also be included in the real-time transfer funding policy model.

“For now, Foshan’s manufacturing sector is still dominated by traditional manufacturing. If we were to be more competitive, we should focus on the priority of industrial growth by supporting digital revolution.” Secretary Guo said, “Only when our enterprises are strong enough, can Foshan see a prosperous future. We should hold nothing back on our way to foster a world-class business environment.”