Hainan to stimulate engineering industry growth with bonuses of up to $1.5 mln – media

HAIKOU /China/, May 7. /TASS/. The administration of South China's Hainan province will stimulate the development of engineering industry with state bonuses of 30% of the sum of investments in an innovative project. The Hainan Daily newspaper reported that the maximum bonus can be 10 million yuan (about $1.5 million at the current exchange rate).

According to the newspaper, this strategy will be implemented in accordance with a recently published official document on encouraging the introduction of advanced technologies into production. The main task is to ensure sustainable and dynamic development of key industries in Hainan's free trade port. Enterprises involved in upgrading, developing and manufacturing in-demand equipment are eligible for the prize, the local government stated. The authorities are also ready to help companies by partially financing projects related to the sale of relevant units and their components.

According to the abovementioned regulations, the developer or manufacturer is entitled to get reimbursement of about one third of the cost of the concluded supply contract. Monetary support in this case is limited to the sum of 3 million yuan (about $452 thousand) in case of complete units, and 2 million yuan (about $301 thousand) if the deal involves one-piece equipment. As for the sales of high-tech components, the premium granted for the project cannot exceed 1 million yuan ($150 thousand).

Furthermore, authorities will provide commercial organizations operating in strategically important industries with funds to partially cover insurance costs. The government plans to give subsidies to repay loans taken by enterprises from banks to attract investments in fixed assets.