"The future will be brighter," underlined Renzo Isler, Secretary General at the China-Italy Chamber of Commerce (CICC). To make this happen, incentives to support businesses represent a focal point and a vital key to success.
For this reason, the CICC is monitoring the incentives to support companies during this difficult period, drawing up a weekly list with all the updated policies and organizing periodically webinars for training and sharing of experiences.
This is how our Mechanical Engineering Working Group (MEWG), with the support of Carlo Nizia, MEWG Vice-Coordinator and Risk Management at UFI FILTER, held its third webtalk today of the series called "Sharing Is Caring: Issues for the MEWG in China”.
Almost 60 online participants together with three eminent consultants discussed how many and what are the incentives to support companies, to facilitate the fastest possible recovery following the lockdown and restrictions related to COVID-19.
"Shanghai has been in lockdown for two months now and we are almost ready to reopen. By the two months of lockdown have left some scars and some businesses have suffered from the inability to operate during this period. In order to facilitate the recovery, the government has approved some measures to alleviate the sting of the inactivity and loss of revenues. These measures are centred on helping the cash flow for the enterprises and give financial support to support the restart. The measures will be adapted and adjusted as the reopening process will unfold and there may be some additional incentives targeting specific business sectors. Today our experts helped us understand what is currently available to us and how to proceed in applying for the incentives."
—Carlo Nizia, MEWG Vice-Coordinator and Risk Management at UFI FILTER
In this exclusive 1-hour virtual exchange, thanks to our high-level executives we learned their own experiences and got insights into topics such as incentives and categories to which incentives are directed, incentives 2020 versus 2022, tax payment and deferred payment, social security and HR cost recovery, how to choose incentives to help the cash flow and when and how to file for credit, incentives and payments.
"In recent years local and central governments have released regulations to stimulate enterprises investing in China, especially in the manufacturing industry. Several measures can be applied by companies that have decided to invest in technical transformation, equipment updating and upgrading production. It is important for manufacturing companies as well as companies in order industries to understand and use all suitable policies that might help them in reducing the tax burden or in improving cash flow. More than ever, companies affected by the current lockdown need to analyze all potential strategies for reducing the pressure of business disruption."
—Giada Piccinini, Head of Shanghai office at GWA - Greatway Advisory
"Most of the supporting initiatives are focused on the SME companies and in the sectors most severely hit by the pandemic situation (catering, retail, exhibition). Measures to support companies' cash flow are also being implemented and it is necessary to monitor the next notices from the authorities, which may include new fiscal relieves."
—Lorenzo Riccardi, Managing Partner of RsA Asia
"The incentives which now the central and local governments are using to stimulate the economy are increasing constantly. Whether can obtain these benefits for your own company depends on the approach that you take. Always be proactive, keep monitoring the incentive policies, try every chance to make the application, and in this way you can earn as much as possible the benefits for your company in this difficult year."
—Matteo Zhi, Senior Partner of D’Andrea & Partners Legal Counsel
Be proactive and keep up to date - some applications are not automatic and it costs nothing to try - our experts pointed out. It is important that the taxpayer of a company get ready to apply for more incentives that should come up soon for the relaunch of the business by the end of 2022.
To download the updated lists drawn up by the China-Italy Chamber of Commerce with the incentive policies and other useful information click here.
See you at the next webtalk of the series "Sharing Is Caring" on June 6th, where you will get insights into the automotive sector and trends in light of the current situation.