China wants to attract more expats to set up innovative companies, according an announcement by the State Council.

Incentives will be created in different areas to support overseas’ talents, including funding, workspace and consultation. Such incentives will surely be welcomed by many individuals wanting to found their startup in China. Because the administrative steps can be tedious so some (free?) guidance in this process would be useful. Also affordable workspace is not always available in suitable locations throughout China’s larger cities.

The move is expected to benefit China’s global talent recruiting program, and the startups founded by the overseas talent will contribute to the country’s economic growth.

Nowadays the lack of top global experts and professionals in high-tech and service industry has slightly slowed down China’s innovation development; it is necessary for the Chinese government to build up a better recruiting system to attract intelligent overseas talents, according to Zhang Jianguo, director of the State Administration of Foreign Experts Affairs (SAFEA).

China’s first plan to speed up attracting expatriates was proposed in Fuzhou. Two years ago the Fuzhou Bureau of Foreign Experts Affairs announced to provide free workspaces for startup companies created by overseas talents. The government also partnered with venture capital firms to offer funds to outstanding programs. Hundreds of global talents have since been attracted under Fuzhou’s Recruitment Program of Foreign Experts (RPFE) plan.

Wang Huiyao, president of the Center for China and Globalization (CCG), thought highly of Fuzhou’s first try to promote expatriates to start business in China and commented that it has set a good example for programs to recruit expatriates nationwide.

Up till now there is limited information about the policy. More specific policy incentives are expected to be released in the near future. At least this policy will be more geared towards attracting foreign R&D, unlike the Free Trade Zones (FTZs) which are more focused on trade.

Source: State Council

Featured Image (cropped): Erikaow/Flickr