China will establish three more pilot zones for companies to conduct R&D. That’s part of the country’s supply-side reform and upgrade of traditional manufacturing.

The announcement came at the conclusion of an executive meeting chaired by Premier Li Keqiang on March 30. The meeting decided to establish pilot zones in Henan, Shandong and Liaoning provinces for local tech companies. The new zones will give China a total of 14 innovation incubators throughout the country. The State Council also promised to provide tax breaks and financing services to the pilot zones.