In the guideline, the Chinese government promises to support those who wish to return to their rural hometowns. (Photo : China Daily)
In order to support Chinese countrymen who wish to set up shop in rural areas, the State Council has released a guideline outlining the different aids the Chinese government will give to army veterans, migrant works as well as college graduates.
"Cost reduction is vitally important for startups. These policies serve them right," said Zhou Tianyong, a professor who works with the Party School of the Communist Party of China Central Committee.
In the guideline, the Chinese government promises to support those who wish to return to their rural hometowns by offering tax breaks, subsidizing business loans, cutting administration fees, optimizing support policies, and lowering thresholds.
The guideline is part of China's nationwide campaign to boost employment and entrepreneurship.
"Migrant workers, college graduates, and army veterans willing to return to their rural hometowns to start new businesses are important forces for the national campaign to boost mass entrepreneurship and innovation given that they have accumulated certain capital, ability, and experiences," said Vice Minister Xin Changxing of Human Resources and Social Security.
Aside from preferential policies, Zhou also encourages would-be entrepreneurs in rural provinces to attend training sessions to increase their know-how about the Chinese market.
Chen Yu, deputy head of the China Association for Employment Promotion, agrees.
"We must make full use of existing resources like economic development zones and innovation parks to avoid unnecessary duplication of investment," he said.
E-commerce startups in rural areas, which are efficient, cheap, and diversified, should also be prioritized, according to Chen.
The Chinese government's efforts to boost the economy in rural areas are not just limited to the guideline. Plans to invest in rural infrastructure, particularly IT facilities, are also being studied.
