Page 11 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2021 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2022

their full focus to their work.

Unleashing the creativity of enterprises
We raised extra tax deductions from 75% on manufacturing enterprises’ R&D

costs to 100%, and permitted enterprises to settle taxes in advance to allow them to
benefit from this policy as soon as possible. In the first three quarters of 2021, extra
tax deductions under this policy totaled 1.3 trillion yuan and tax cuts surpassed

330 billion yuan. We launched import tax policies for supporting scientific and
technological innovation during the 14th Five-Year Plan period. We implemented
the policy of providing rewards and subsidies for small and medium-sized

enterprises (SMEs) that apply special, sophisticated techniques to produce unique
and novel products, supporting the development of more than 1,300 such

enterprises into “little giants.” We provided support to 60 cities piloting
comprehensive reforms of financial services for private companies and micro and
small businesses, and continued the policy of providing rewards and subsidies to
reduce financing guaranty fee rates for micro and small businesses. The volume of

re-guarantee business conducted through the National Financing Guarantee Fund
increased by 754.2 billion yuan in 2021, up 79%, while the number of market

entities receiving these services increased by 725,000, up 165%.
Promoting the upgrading of industrial and supply chains

By coordinating financial support and tax break policies, we supported efforts
to shore up industrial chains in key industries including integrated circuits,

industrial machine tools, next-gen 5G information technology, biomedical and
high-end medical equipment, and agricultural machinery. We promoted the
replacement of foreign products with Chinese ones and technological upgrading in

industries with weaknesses in this regard. We continued to implement subsidies to
popularize new-energy vehicles, and the output and sales of these vehicles both
rose by a large margin in 2021.

 We increased spending on improving living standards, and provided
strong and effective guarantees for meeting basic living needs.

Ensuring effective routine epidemic control

We allocated support funds to help suppress local outbreaks of Covid-19,
strengthened funding guarantees for scientific research related to epidemic
prevention and control, and promoted medicine and vaccine R&D. We provided

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