Premier Li Keqiang chaired a State Council executive meeting on June 5, 2019, and decided to adopt more measures to further implement the innovation-driven development strategy and execute favorable tax policies to encourage research & development activities
The meeting decided to adopt more steps to drive business start-ups and innovation to further implement the innovation-driven strategy and energize the vitality of market players. The important role of business start-ups and innovation will be harnessed in supporting employment and promoting technology and innovation. It was also decided at the meeting to build platforms for business start-ups and innovation, and to promote the integrated development of companies in different sizes. The Internet Plus model will be upgraded. Financial institutions will be guided to lower real interest rates and overall cost for loans to micro and small enterprises. A higher ratio of nonperforming loans made to micro and small firms will be allowed. The non-performing loan ratio of such loans will be relaxed to no more than 3 percentage points higher than the overall NPL ratio, from the current 2 percentage points.