ANNOUNCEMENT 20 May 2016
May 20th, 2016 - The PRC State Council released a plan to put more resources into the increased use of the Internet and relevant IT systems in manufacturing as part of its 'Made in China 2025' and 'Internet Plus' schemes.
NUMBER OF INTERVENTIONS
PRC State Council, May 20th 2016. (国发〔2016〕28号—国务院关于深化制造业与互联网融合发展的指导意见)
PRC Ministry of Industry and Information Technology, May 31st, 2018. (工信部信管函〔2018〕188号 关于印发《工业互联网发展行动计划（2018-2020年）》和《工业互联网专项工作组2018年工作计划》的通知)
On the 20th of May 2016, China's State Council released a plan to deepen the use of the Internet and related IT services in the manufacturing sector.
One of the instruments used in this effort of preferential tax policies and VAT reductions for eligible firms, as well as R&D institutions relevant to the plan.
In addition to this, the plan officially gives encouragement to various financial institutions to reduces restrictions on investments and loans to firms related to the plan.
Finally, the plan also mentions that there will be increased efforts from the Chinese State to seek out and outright purchase firms that it deems pertinent to the goals of this scheme. The explicit example that is given is cloud computing-related companies.
On May 31st, 2018, the Chinese Ministry of Industry and Information Technology (MIIT) released an action plan indicating how government support outlined in the State Council's Guofa 2016/28 on boosting the integration of internet in advanced manufacturing would be organised.
Included in the MIIT's plan were clauses indicating the establishment of various financial support mechanisms, such as debt financing, provision of favourable corporate bonds, preferential amortisation policies, etc.
The May 2018 announcement shows an operationalisation of the State Council plan.
Based on the details of the original plan, the policies will only benefit Chinese firms. This is confirmed by at least one further official regional plan, which included specific subsidy amounts for eligible firms; see related act for more information.