China’s New Path to Growth March 3, 2011 RICCentre By Bryan Watson The following article from the Globe and Mail, sheds light into how China is now envisioning itself – from the world’s supplier of cheap goods to the world’s leader in high-valued technologies. The country is now proposing for investments of up to $1.5 trillion US over five years in the following seven industries: 1) Alternative Energy 2) Biotechnology 3) New-Generation Information Technology 4) High-end Equipment Manufacturing 5) Advanced Materials 6) Alternative-Fuel Cars and Energy-Saving 7) Environmentally Friendly Technologies Funding would likely come from corporations, local governments and banks, and the plan would be to invest up to $300 billion US each year into these seven strategic industries over the next five years. The reason? – The desire to make the country less dependent on “low-end, dirty manufacturing” and to have “technology help bridge the gap between limited supplies of commodities and the rapidly growing demand that has propelled the country to become the world’s second-biggest economy.” The goal? – Presently, the output from these seven strategic industries together account for approximately 2% of the countrys’ GDP. The government would like these sectors to together generate a total of 8% of its GDP by 2015, and 15% by 2020. Tax Incentives? – A proposal to halve the income tax rate of those entities that invest in any of the seven sectors. Next Steps? – This plan requires the approval of Parliament in March of 2011. Reposted from National Angel Capital Organization Throughout his career, both in Canada and the UK, Bryan J. Watson has been a champion of entrepreneurship as a vector for the commercialization of advanced technologies. Upon his return to Canada in 2004, Bryan established his venture development consulting practice to help emerging-growth companies overcome the barriers to success they face in the Canadian commercialization ecosystem. Visit Bryan’s blog and the National Angel Capital Organization. The RIC blog is designed as a showcase for entrepreneurs and innovation. Our guest bloggers pro vide a wealth of information based on their personal experiences. Visit RIC Centre for more information on how RIC can accelerate your ideas to market.