Suzhou Biomedical Industry: Updated policies (12) starting Dec. 2022
Published: 22 December 2022
The industrial cluster of Suzhou's biomedical and the high-end medical device cluster was ranked among the 45 Nationally Advanced Manufacturing Clusters, according to a list released by the Ministry of Industry and Information Technology in November 2022. For the promising future of local biomedical enterprises and innovation cluster of the digital economy era, the Suzhou government issued the "Policy and Measures on Supporting the
Construction of Suzhou's Biomedical and High-end Medical Apparatus National Advanced Manufacturing Cluster" on December 3, 2022, with a total of 12 specific policies. (hereinafter "Twelve Policies of Suzhou Biomedical
Based on the public information revealed by the Suzhou government, the "Twelve Policies of Suzhou Biomedical Industry" mainly covers the fields of government guiding fund, transformation support, financial support, review and approval facilitation measures, and tax incentives. Specifically, these policies include the establishment of special guidance funds, strengthening capital market financing services, offering generous bank credit lines, special interest discount support, enriching bond financing channels and insurance products, improving the review and approval process, optimizing tax collection and management and etc.
1. Government guiding fund and transformation support
The "Twelve Policies of Suzhou Biomedical Industry" confirms that a special guide fund will be set up to support enterprises in investment, R&D, commercialization, and industrial chain integration. Meanwhile, local enterprises are encouraged with financial support to spin off surplus production capacity and perform a transition towards CRO/ CDMO.
2. Financial support
The "Twelve Policies of Suzhou Biomedical Industry " encompasses the measures of capital market financing, credit, bonds, insurance, and other aspects to provide comprehensive financial support for biomedical enterprises and rejuvenate the local enterprises through financial approaches.
3. Review and approval facilitation measures
The "Twelve Policies of Suzhou Biomedical Industry" also will launch a series of measures focusing on the review and approval process, clinical application of innovative products, and innovative elements transformation from the perspective of business operation and public service needs of biomedical enterprises.
4. Preferential tax policies related to biomedical enterprises
The "Twelve Policies of Suzhou Biomedical Industry " highlighted the optimization of tax collection and management services for biomedical enterprises, meanwhile summarized the possibly applicable tax preferential policies for biomedical enterprises.
Deloitte's observations and suggestions
After decades of intensive development, the biomedical industry has become one of the core pillar industries in Suzhou. As the flagship of the local economy, the biomedical industry is currently of great resource integration advantages and, obviously fierce competition as well.
In May 2022, the Suzhou Municipal Government issued the Implementation Plan for the Construction of Innovation Clusters in Suzhou's Biomedical Industry, which proposed that by 2023, Suzhou will strive to achieve an industrial scale of more than RMB 330 billion and an output value of more than RMB 270 billion; By 2025, will strive to achieve an industrial scale of more than RMB 400 billion and an output value of more than RMB 350 billion.
The "Twelve Policies of Suzhou Biomedical Industry" is a strong manifestation and signal that the Suzhou government has set up an ambitious long-term goal to vigorously develop innovative clusters of biomedical and high-end medical apparatus industries under the new situation. At this challenging moment of external economic environment, a policy portfolio that combines financial, administrative, and taxation measures would be significant to help enterprises pull through the short-term difficulties, transform and upgrade, and eventually promote healthy industrial development and build up future potential.
Riding the wave of incentive policies, enterprises should take the chance to re-evaluate the current situation while bearing in mind future development, taking the advantage of the policies to boost innovation and seek business optimization for the achievement of long-term strategic goals. In the meantime, during projects innovation, business transformation, business model optimization, and supply chain reconstruction, enterprises should assess tax implications and therefore choose an optimized option to be implemented. Also, the overall tax efficiency of the group is strongly connected to the corporate IP arrangement, which should also be embedded into the corporate strategy design.
We will continue to follow the changes of relevant policies and provide updates. For more inquiries regarding industry insights and tax advisory in respect of government support and IP planning, please feel free to contact us.
1. Supporting policies
Hainan FTP to bring new growth impetus to local biopharma industry