China’s export base hit by trade war offers sweeteners to lure professional services firms
Guangzhou city government unveils financial incentive package for new arrivals, while regional authorities look to shore up manufacturing
Authorities in one of China’s main manufacturing and export bases have announced a range of new incentives to attract and retain professional services firms in their latest bid to cushion the impact of a bitter trade war with the US.
Under new rules published by the Guangzhou government on Friday, companies that relocate to the city, as well as those that have done so since the start of last year, and that meet certain financial criteria, could be entitled to up to 10 million yuan (US$1.5 million) worth of financial incentives and as much as 2 million yuan in annual rent subsidies for up to three years.
Also, for those working in the professional services field and earning a pretax salary of at least 600,000 yuan, the government said it would pay annual cash bonuses of between 60,000 and 100,000 yuan.
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Guangzhou is the capital of south China’s Guangdong province and at the heart of the Pearl River Delta region, which as a whole has been keen to reinvent itself as more than just the home of manufacturing and exports.
The city government said the latest incentives – which also include helping new arrivals with housing expenses, education for their children and residence permits – were part of a much wider package to attract investors to the region.
While Guangzhou is keen to boost its professional services sector, which encompasses everything from law firms to IPR specialists and accountancy practices, the Guangdong government has been devising new ways to support the region’s traditional industries.