Try CNC Machining Services from a High-Tech Enterprise in China

15 June 24
CNC Machining Services China High-Tech Enterprise

Are you in need of high-quality CNC machining services? If so, consider partnering with a Chinese high-tech enterprise like Zhuohang Precision Machining Factory. Zhuohang has achieved the prestigious status of a High-Tech Enterprise in China, highlighting Zhuohang’s continuous commitment to technological innovation, talent development, and substantial R&D investment.

What is a High-Tech Enterprise?
In China, a High-Tech Enterprise is a company engaged in continuous research and development and the transformation of technological achievements within nationally supported high-tech fields. These enterprises develop core proprietary intellectual property, and they must be registered and operating within mainland China (excluding Hong Kong, Macau, and Taiwan) for over a year. High-tech enterprises are knowledge-intensive and technology-intensive, forming a critical part of the modern economy.

Knowledge and Technology Intensive: High-tech enterprises heavily rely on specialized knowledge and advanced technology.
Innovation Capabilities: These companies possess strong capabilities in technological innovation and high-end technology development, facilitating domestic and international market expansion.
Investment and Policy Attraction: High-tech enterprises attract favorable policies, and financial support from local governments, industry organizations, and venture capital, promoting rapid industrialization and commercial success.

On June 6, 2023, Minister Wang Zhigang of the Ministry of Science and Technology revealed staggering growth in China’s high-tech sector. Over the past decade, the number of national high-tech enterprises skyrocketed from 49,000 to 330,000 by 2021. This expansion reflects a robust commitment to technological advancement across industries.

Notably, these enterprises have significantly bolstered national research and development (R&D) efforts, accounting for 70% of the total R&D expenditure by Chinese businesses. Moreover, their tax contributions have surged from ¥0.8 trillion in 2012 to ¥2.3 trillion in 2021, underscoring their vital economic role.

In the realm of capital markets, high-tech enterprises dominate listings on China’s Shanghai Stock Exchange STAR Market and Beijing Stock Exchange, collectively comprising over 90% of all listed companies. This dominance highlights their pivotal role in driving innovation and economic growth on a national scale.

State-Supported High-Tech Fields – High-tech enterprises operate in various advanced fields, including but not limited to:
Electronics and Information Technology: Software technology, microelectronics, and network technology.
Biotechnology and New Pharmaceuticals: Biopharmaceutical technology, traditional Chinese medicine, and natural drugs.
Aerospace Technology: Civilian aircraft technology and new-generation civil aviation operation support systems.

Certification Criteria for High-Tech Enterprises – To be recognized as a high-tech enterprise, a company must meet several stringent criteria:
At least 30% of employees should hold a college degree, with over 10% engaged in R&D activities.
Continuous engagement in R&D to acquire and creatively apply new scientific knowledge or substantially improve existing technologies, products, or services.
High-tech products or services should constitute at least 60% of the company’s total annual revenue.

Benefits of Being a High-Tech Enterprise – Certified high-tech enterprises enjoy a range of preferential policies, such as:
Corporate Income Tax Reduction: The corporate income tax rate is reduced to 15% from the standard 25%.
R&D Expenses Deduction: Enterprises can deduct 100% of their R&D expenses before tax if they haven’t formed intangible assets. For those forming intangible assets, they can amortize 200% of the asset cost before tax since January 1, 2023.

Zhuohang Precision Machining Factory: A Leader in Innovation
As a CNC precision machining factory headquartered in Guangdong, we are proud to be among the 330,000 high-tech enterprises in China. Our commitment to continuous technological innovation, talent cultivation, and increased R&D investment strengthens our core competitiveness, enabling us to offer more professional and reliable precision CNC machining solutions to our clients.

For more information on our CNC machining services, capabilities, and how we can meet your custom high-precision machining needs, please visit our website or contact us directly.

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