The State Council held a policy briefing on April 9, interpreting regulations on collection of governmental fees, and entrepreneurship of returning overseas talent.

Cheng Lihua, vice-minister of the Finance Ministry; You Jun, vice-minister of the Ministry of Human Resources and Social Security; Zhang Xingye, head of the planning finance and foreign affairs department under the Ministry of Housing and Urban-Rural Development, and Tang Tao, vice-minister of the Ministry of Human Resources and Social Security, were invited to elaborate with more details.

Further reducing fees for enterprises

At the State Council executive meeting held on March 28, measures were decided to expand VAT reform, the standard for small-scale taxpayers was unified, and over 400 billion yuan would be cut for market entities in one year, said Cheng Lihua at the policy briefing.

At the executive meeting held on April 4, policies and measures to further clarify and regulate governmental fees collection were approved. The meeting decided to further reduce fees for enterprises and costs for the real economy. Cheng said that the regulation has several features: wide range, various measures; specific policies, and continuous implementation.

Cheng admitted that unreasonable charges still exist. Currently the government is putting priority on the following four aspects: publishing fees category and lists on the internet; establishing a complaint and reporting mechanism; improving the multi-department joint-inspection mechanism, and improving regulations for government nontax revenue.

Since 2015, China’s social insurance premiums were reduced four times, said You Jun. The general social security rate was reduced from 41 percent to 37.25 percent, around 315 billion yuan were reduced for enterprises, he added.

The fee reduction in social security this time - which is from 20 percent to 19 percent — is the extension of the reduction policy in 2016, said You. This was originally set for April 30, 2018, but now the due date will be postponed one year, he added.

Zhang Xingye introduced work on clearing deposits in construction. Measures include making a guiding document; revising the contract of guarantees and sample text of guarantee letter, and strengthening supervision and accountability. It is estimated that 20 billion yuan will be further cut for construction enterprises in 2018.

More measures to encourage returnees’ entrepreneurship

In order to attract more overseas Chinese students to return and start their own businesses and innovate at home, several targeted and effective incentives have been rolled out, according to Tang Tao.

The ministry, along with several other government ministries and institutions, has worked out a plan on the startups of overseas Chinese students, which was approved at the State Council executive meeting on April 4, said Tang.

Targeted measures will be adopted to encourage their entrepreneurship, including financial support from related departments, intellectual property-backed loans for startup financing and simplified procedures to obtain hukou, the government system of household registration for urban residency, said Tang.

To better promote the favorable policies, the government compiled brochures and promotional materials, and distributed them in the gathering areas of returnees, such as development zones, parks, and enterprises operated by the returnees.

In order to further support their innovation and entrepreneurship, the government will do more service work, such as further improve the policy and service system, increase support and targeted activities, he said.

Favorable policies in convenient entry and exit rules, social security, taxes, protection of intellectual property, residency and schooling of their children will be further advanced.

Service activities for connecting overseas talent with domestic projects and innovation funds will be further promoted, as in 2017, when such programs attracted 43,000 overseas talent, according to Tang.