Shanghai offers cash sweeteners worth millions of dollars to attract hi-tech manufacturing projects, restore confidence in China’s economic ‘dragon head’

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The commercial hub is offering cash awards of up to 100 million yuan (US$14.53 million) to attract projects in key sectors such as artificial intelligence and biotechnology

The move forms part of efforts to boost confidence in the economically vital city as it strives to reignite growth after China’s post-pandemic reopening

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Shanghai is sometimes dubbed the ‘dragon head’ of China’s economy, which is highly dependent on multinational businesses for jobs and taxes. Photo: Bloomberg

Daniel Renin Shanghai

Published: 6:15pm, 6 Apr 2023Updated: 6:24pm, 6 Apr 2023

Shanghai is offering cash awards of up to 100 million yuan (US$14.53 million) to attract manufacturing projects in key sectors such as artificial intelligence and biotechnology, in a bid to reignite economic growth after China’s reopening.

Vice mayor Li Zheng told an investment promotion conference on Thursday that the mainland’s commercial and financial hub will offer 24 economic sweeteners as it aims to lure hi-tech firms from around the globe.

Aside from the cash award, the municipality will offer a subsidy covering 50 per cent of a firm’s bank loan interest payments, grant as much as 10 million yuan for office rent payments and invest in promising businesses via government guidance funds.

The incentives target projects by companies based at home and abroad.

“The newly published policies focus on serving [manufacturing] businesses,” Li said. “We hope the incentives can spread some sunshine among the companies that qualify.”

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The announcement comes just two days after the city government said it had encouraged district-level authorities to award cash to newly established foreign-invested projects.