The inaugural Green Innovation Competition was organised by the Green Partnership of Industrial Parks in China (GPIPC) in collaboration with the China Recycling Economy Association, the Cleaner Production and Recycling Economy Research Centre of the Chinese Academy of Environmental Sciences, the China The competition is co-organised by the GPIPC, the China Recycling Economy Association, the Cleaner Production and Recycling Economy Research Centre of the Chinese Academy of Environmental Sciences, the China Environmental Investment Alliance and the World Wildlife Fund (WWF). This year's competition has invited ten national economic and technological development zones as supporters, and participants will have the opportunity to enjoy the benefits of their policies on a priority basis. In this issue, we look at what good policies are in place to support innovation in the Beijing Economic and Technological Development Area (BETDA), one of the Green Innovation Partners and the current Chair of GPIPC.

Chapter III Financial Support

Article 16 The city establishes an SME development fund, following the principles of policy-oriented and market-oriented operation, and guides and drives social funds to support SMEs in the start-up and growth stages through cooperation in setting up sub-funds and direct investment, focusing on innovative SMEs with independent core and cutting-edge technologies as well as SMEs that use new technologies and new models to transform and upgrade traditional industries; among them, the proportion of funds invested in SMEs in the start-up stage shall not be less than 50%.

Other policy funds, investment funds and other funds established by the city and district treasury to support the development of enterprises and industries shall strengthen coordination and prioritise supporting eligible SMEs.

Article 17 Encourage all kinds of financial institutions to increase the supply of financing for small and medium-sized enterprises, innovate inclusive financial products, and increase the scale and proportion of financing for small and medium-sized enterprises.

Article 19 Support financial institutions to provide secured financing for SMEs using accounts receivable, intellectual property rights, franchise revenue rights, fee rights, equity, inventory, machinery and equipment, etc., as collateral.

Support financial institutions to provide receivables financing for upstream and downstream SMEs based on the credit and transaction information of core sectors and enterprises in the supply chain. The city builds a supply chain debt platform based on blockchain and other technologies to promote timely confirmation of debt relationships with SMEs by government departments, state-owned enterprises and other payables.

Article 20 The city establishes a governmental financing guarantee system that is commensurate with the scale of demand for financing guarantees for SMEs.

The city's governmental state-owned guarantee institutions shall not be profit-oriented. They shall insist on focusing on small and medium-sized enterprises, tiny and micro-enterprises, with the business of serving small and micro enterprises accounting for no less than eighty per cent. Promote the risk-sharing mechanism among the government, banks and guarantee institutions, and increase the risk tolerance of guarantee institutions for small and micro-enterprises. The guarantee and re-guarantee institutions whose guarantee and re-guarantee rates are controlled within a reasonable range shall be given a certain percentage of compensation for the guarantee and re-guarantee; rewards shall be given to guarantee institutions that reduce the guarantee and re-guarantee rates, eliminate counter-guarantees and increase the proportion of first loan guarantees.

Article 21 Support insurance institutions to carry out loan guarantee insurance and credit insurance business for small and medium-sized enterprises, and develop insurance products adapted to the characteristics and needs of small and medium-sized enterprises; improve the cooperation mechanism among the government, banks and insurance, and give play to the role of insurance in increasing credit and dispersing risks; and give play to the role of market-based reinsurance to support financing for small and micro-enterprises.

Article 22 The city promotes the opening up of government data, strengthens the construction of financial data zone, supports the construction and operation of the first loan service centre, the renewal loan acceptance centre and the confirmation financing centre.

The city's financial management department will organise banking and other financial institutions to build first loan service centres, renewal loan acceptance centres and confirmation financing centres in government service centres, carry out first loans, non-renewable loans, accounts receivable financing, credit loans, medium- and long-term loans and intellectual property pledges, and provide services such as information checking, acceptance and support for business-related government data, so as to increase the rate of access to first loans for small and medium-sized enterprises and increase the proportion of non-renewable loans, credit loans and intellectual property pledges. The proportion of credit loans and intellectual property pledges will be increased. Preferential rates will be given to guarantee the first loan and non-renewable loan business, and financial subsidies will be given to SMEs that obtain their first loan through the first loan service centre.

Article 23 Support SMEs with conditions to raise direct financing through the domestic and overseas listing, bond issuance, equity financing, note financing, trust financing, asset securitisation and other means permitted by laws and regulations.

Encourage and guide small and medium-sized enterprises to list and raise funds on the national small and medium-sized enterprise share transfer system.

Encourage large and medium-sized enterprises to issue credit-enhancing pooled bonds for small and micro enterprises; support qualified enterprises to issue venture capital bonds and raise funds for funding the establishment or capital increase of venture capital funds.

Article 24 The city will take the regional equity market as a comprehensive platform for the application of policies and measures to support small and medium-sized enterprises and support and guide small and medium-sized enterprises to carry out direct equity financing in the regional equity market.

The regional equity market shall establish a specialised and special new board to provide services such as listing and display, hosting and trading, investment and financing services, training and counselling according to the characteristics of specialised and special new SMEs.

Article 26 The city establishes a regular docking and exchange mechanism among the government, financial institutions and SMEs and a rapid response mechanism for financial services. It will play the role of the bank-enterprise docking system and the comprehensive financial service platform for small and micro-enterprises. It will also make extensive use of technologies such as big data, artificial intelligence, and blockchain to smooth the channels for and enhance the timeliness and accessibility of financial services.

Chapter IV Market Development

Article 27 Supports the integration and development of large and small enterprises and promotes special carriers for integration and development. Encourage large enterprises to open up space carriers and scenario applications for SMEs, guide SMEs to collaborate with large enterprises at home and abroad in supporting and collaborative creation, and promote the entry of SMEs' products and services into the industrial chains or procurement systems of large enterprises.

Article 28 The city adopts the following measures to encourage the inclusion of SME products and services in government procurement.

(a) Equal treatment for SMEs in terms of enterprise shareholding structure, years of operation, the scale of operation and financial indicators.

(ii) The share of procurement set aside for SMEs should account for at least forty per cent of the total annual government procurement project budget of the department, with no less than seventy per cent set aside for small and micro enterprises, except for goods and services that SMEs cannot provide.

(iii) Where large and medium-sized enterprises and small and micro enterprises form a consortium to participate in government procurement together, a certain percentage of price deduction shall be granted to the consortium.

(iv) A certain percentage of price deduction shall be granted for products of small and micro enterprises in accordance with the relevant regulations in the evaluation, depending on the circumstances of different industries.

Chapter V Innovation Support

Article 32 Encourage small and medium-sized enterprises to promote innovation in technology, products, processes, management models, business models, etc., in accordance with market demand, and support the growth of small and medium-sized enterprises into specialised, new and high-tech enterprises.

Departments of science and technology, development and reform, economic informatisation and park management shall give policy and financial support to SMEs that increase investment in technological innovation, build R&D institutions and carry out digital upgrading.

Article 33 Support small and medium-sized enterprises independently or jointly with large enterprises to undertake major science and technology special projects, science and technology infrastructure construction, various science and technology plan projects and high-tech industrialisation projects. City and district science and technology departments shall provide targeted guidance and services and give policy and financial support to those that meet the conditions.

Article 34 Support the construction of public science and technology service platforms to provide product development, technology development, design, consulting and testing services for the innovative development of small and medium-sized enterprises.

The research and development expenses incurred by SMEs in developing new technologies, new products and new processes shall be eligible for pre-tax deduction policies if they comply with the relevant state regulations.

Where the fixed assets of SMEs really need accelerated depreciation due to technological progress and other reasons, they may shorten the depreciation period or adopt accelerated depreciation methods in accordance with the relevant state regulations.

Article 35 Support SMEs and SME-related industrial organisations to participate in the formulation of international standards, national standards, group standards and other standards to improve product quality and enhance their ability to cope with technical trade barriers. The competent municipal standardisation department shall formulate specific measures in conjunction with relevant departments.

Article 36 Cooperation between institutions of higher learning, research institutes and small and medium-sized enterprises in production, research and use shall be supported by the competent departments of small and medium-sized enterprises at the city and district levels in conjunction with the science and technology, education and other departments at the same level by the provisions.

Encourage institutions of higher education and research institutes to transfer, license and invest in the transfer of scientific and technological achievements with independent intellectual property rights to small and medium-sized enterprises under the same conditions, and the relevant departments shall provide facilities.

Support small and medium-sized enterprises to enjoy the policy of early and pilot implementation of enterprise income tax for technology transfer.

Article 37 Municipal and district intellectual property departments shall provide intellectual property consultation and counselling and professional training for SMEs, improve the level of creation, application, protection, and management of intellectual property rights of SMEs, and support SMEs in acquiring corresponding intellectual property rights through subsidies, trusteeship, incentives, and other measures.

Support SMEs to take out IPR insurance and subsidise premiums for eligible ones in accordance with regulations.

Subsidies shall be given to SMEs specialising in new technologies for the application and maintenance of invention patents, with specific measures to be formulated by the municipal intellectual property department in conjunction with the relevant departments.

In conjunction with the relevant departments, the municipal intellectual property department shall promote the improvement of the intellectual property value assessment system for SMEs.

Article 38 Open up application scenarios in the fields of medical care, government affairs, transportation, education, urban management, etc., and support SMEs to carry out application demonstrations of new technologies, new products, and new models.

Article 39 Innovative SMEs in science and technology may set up unique shareholding structures in accordance with laws, administrative regulations and relevant state provisions, issue shares with special voting rights, and agree in the articles of association that special voting shares have a more significant number of voting rights.

Article 40 Where small and medium-sized enterprises and entrepreneurs use major scientific research infrastructures, large scientific research instruments and other scientific and technological resources through the capital's scientific and technical conditions platform, the municipal science and technology department shall give financial support through scientific and technological innovation vouchers and other means.

In conjunction with relevant departments, the city economy and information technology department shall regularly organize innovation and entrepreneurship competitions and innovation recommendation meetings to encourage the participation of recommended small and medium-sized enterprises.

Article 41 The city establishes a positive incentive orientation for small and medium-sized enterprises and entrepreneurs, creates a culture and social atmosphere that encourages innovation and tolerates failure and gives more understanding, tolerance and assistance to failures and mistakes in the creation and development of enterprises.

Chapter VI Service Guarantee

Article 43 Public service platforms for small and medium-sized enterprises in cities and districts shall bring together the service resources of relevant government departments and support market-oriented service institutions, industry associations, chambers of commerce, industrial alliances, and other service resources to be brought together the platforms.

The public service platform for small and medium-sized enterprises shall provide the following services for small and medium-sized enterprises.

(i) Interpretation, pushing and consultation of information on government services such as market supervision, finance and taxation, finance, government procurement, intellectual property rights, environmental protection, production safety, labour and employment, social security, etc., and enhancing the level of comprehensiveness, precision, and specialisation of the interpretation, pushing and consultation services.

(ii) Matching of demands for investment and financing, space and venue, information technology, science and technology services, exhibition and display, channel promotion, etc.

(iii) Commercial services such as legal advice, accounting services, auditing services, taxation services and human resources recruitment.

(iv) Public training services such as management capacity enhancement training and vocational skills training.

(v) Promoting the synergistic development of SMEs in the Beijing-Tianjin-Hebei region.

Where SMEs obtain services such as intellectual property rights, testing and trial production, information technology, management consulting, talents and training, market development, investment and financing through SME public service platforms, the municipal and district SME work authorities may provide financial support through SME service vouchers and other means.

The relevant departments shall promptly clarify the conditions, locations, and processes, required materials, shortage tolerance, processing links and time limits, charges, contact information, complaint channels, etc. for the introduction of policies on government services for SMEs; the processing conditions and required materials shall not contain other, related, and other ambiguous bottoming-out requirements.

Article 44 The senior management personnel and core technical backbone in small and medium-sized enterprises who meet the conditions may apply to the competent department of talents for a work residence permit or the introduction of talents in the city. Support the introduction of talents urgently needed and in short supply for the development of various industries such as science and technology innovation, culture and creativity, healthcare, finance, and sports, and ensure that a reasonable proportion of talents are introduced to small and medium-sized enterprises.

The competent department shall prescribe the conditions, treatment, and procedures for the work residence permit or the introduction of talents as stipulated in the preceding paragraph.

Article 45 The city establishes a training mechanism combining government funding and guidance, social, intellectual support, and the independent needs of enterprises. It guides social training institutions to innovate training methods and improve training content so as to improve the marketing, management and technical level of enterprises and enhance the quality of personnel of small and medium-sized enterprises.

Encourage institutions of higher education and SMEs to jointly build practice bases and innovate the mode of training talents for SMEs.

Article 46 Government agencies, institutions, organisations that use part or all of their financial resources, and large enterprises shall not default on payments for goods, works and services to SMEs.

Small and medium-sized enterprises may provide feedback on defaulted arrears through complaint platforms, complaint receiving agencies and other means and have the right to demand that the defaulting party pay the arrears and compensate for the losses caused by the default.

The city and district departments in charge of the work of SMEs shall establish a mechanism for the rapid acceptance and mediation of payments owed to SMEs.

Article 47 The city shall establish a sound mechanism for emergency assistance and relief for small and medium-sized enterprises. In the event of natural disasters, public health and other emergencies or other major events that cause losses to small and medium-sized enterprises affecting their survival, the municipal and district people's governments and their relevant departments shall promptly adopt and implement measures such as tax relief, research, and development subsidies, rent reduction subsidies, employment protection, financing support or government procurement.

Article 52 These Regulations shall come into force on December 1, 2020.