Beijing offers tax credits to patent-packing, R&Ding chip outfits great and very small

China's Ministry of Industry and Information Technology has defined the types of silicon companies it is willing to offer tax credits – and even small outfits are invited to apply if they have some patents in their pockets. The tax relief is part of a group of measures snappily titled "Several Policies to Promote the High- …

[Yet Another Anonymous coward]

Typical commie behaviour

Tax credits for Scientific Research and Experimental Development - bunch of communists

[Danny Boyd]

Re: Typical commie behaviour

I agree. They could have taken progressive and democratic US approach - increase chip development and production by issuing an executive order, and be done with it. But no-o!

[Chris G]

Re: Typical commie behaviour

Was that the September 2020 executive order that was accompanied by a government announcement of $25Bn in subsidies with a max of $3Bn to any one investment in new tech?

The main difference between the two would be who pockets what, how much and what is the penalty if caught.

[Yet Another Anonymous coward]

Re: Typical commie behaviour

>September 2020 executive order that was accompanied by a government announcement of $25Bn in subsidies

But that will be used properly, for share buybacks and executive bonuses, introducing the sordid topic of money into R&D is unAmerican

[Headley_Grange]

Re: Typical commie behaviour

They do appear to be taking a forward looking R&D approach to the tax credit. A company I worked for employed one of the big accountancy firms to review everything we did to see if we could pretend it was R&D and get tax credits for it. I'm sure our claim met the rules, but........

[Cynicalmark]

Annnnd

The crunch is your patents will be the motherlands as will you and your company. China still struggling with innovation copies and in some cases improving existing technology.

Remember there is no such thing as a free lunch.

[Anonymous Coward]

Re: Annnnd

Remember there is no such thing as a free lunch.

Yup. That's why they still have to pay tax.

[martinusher]

Re: Annnnd

Most development is iterative. The underlying technology is usually well known but getting that technolgoy production ready invariably requires a lot of effort and incremental development.

All countries have restrictions on technology transfer. You've probably clicked through an ITAR page on a manufacturer's website in order to download their toolsets. I suggest reading the fine print sometime.