by XIN Yuan

The State Taxation Administration said in data released this week that tax cuts, fee reductions and rebates amounted to 636.1 billion yuan (US$87 billion) between January and May under policies designed to support the transformation of manufacturing and the development of high-tech industries.

Preferential measures for high-tech enterprises, including a reduced corporate income tax rate of 15 per cent, delivered 140.7 billion yuan in tax relief. Policies targeting advanced manufacturing—such as extra VAT deductions—accounted for 415.8 billion yuan.

VAT invoice data showed sales revenue in the high-tech sector jumped 14.2 per cent year on year during the period, outpacing the national average. Core industries within the digital economy expanded by 10 per cent, while companies' spending on digital technologies rose 9.7 per cent, reflecting steady progress in integrating digital tools into traditional industries.

Overall, sales revenue among manufacturing companies grew 4.2 per cent. Sales in equipment manufacturing, digital product manufacturing and high-tech manufacturing climbed 9 per cent, 12.1 per cent and 12.1 per cent respectively. In particular, sales in computer production and intelligent equipment manufacturing surged 21.6 per cent and 19.4 per cent.

Earlier in June, Industry and Information Technology Minister LI Lecheng chaired a meeting to set the ministry's 2025 priorities for integrating information technology and industrial development. The plan calls for faster digitalisation, smarter production and an "AI+ manufacturing" initiative to scale up intelligent upgrades.

On a later trip to Guangdong, Li stressed the importance of creating a favourable environment for manufacturers to pursue innovation-led, high-end and green development, as part of broader efforts to strengthen industrial growth and nurture new economic drivers.