广播听力：China: High-tech Sector Abolishes Life Tenure Qualification

High-tech companies in China will no longer enjoy life-time beneficial treatment from this year in a government move to increase innovation.

Newly publicized measures for the recognition and administration of new and high-tech enterprises have lifted requirements what constitutes being a high-tech company.

To receive a preferential tax rate, high-tech companies must have core technologies that have demonstrated their proprietary intellectual property rights in the previous three years.

Sun Gang is a researcher with the Finance ministry. (wWw.hxen.com)

"This time, the regulation has clear requirements that high-tech companies must apply their scientific findings, must continue innovation. If you only have one kind of high technology, and do not have ability for follow-up research and development, you will lose your status after three years."

The new provisions not only set compulsory standards for high-tech companies, but also expanded its preferential targets. In the past, only high-tech companies registered in state-recognized economic and technological development zones could get a concessional tax rate of 15 percent.

Now, the policy applies to all high-tech companies which are accredited.

China's high-tech industry has grown at an average annual rate of 27 percent for the last five years.

According to the new measures, the state will support companies related to the electronic information industry, biology and new pharmaceutical technology, space and aviation technology, as well as innovations in new energy.