China renews innovation drive

China's State Council, the Cabinet, has unveiled a series of measures to promote independent innovation and encourage entrepreneurship.

According to a statement released Wednesday after a State Council executive meeting presided over by Premier Li Keqiang, the country must expand pilot programs for independent innovation and seek "multiplication" in social enthusiasm for innovation and entrepreneurship with the "subtraction" of government grip.

Since 2010, China has experimented with policies promoting scientific and technological innovation in the Zhongguancun National Innovation Demonstration Zone in Beijing.

The government will roll out six Zhongguancun policies to the rest of country, including new rules on research funds and equity financing for small enterprises.

There will also be some tax preferences for innovation demonstration zones. For instance, the income tax for equity incentives given to technical and managerial employees can be paid by installment within five years, according to the statement.

The statement added that China will do research in Zhongguancun concerning overseas talent, diversify corporate financing channels and support the construction of bonded warehouses.

China has six national innovation demonstration zones and plans for more.