China provided tax and fee relief worth 424.1 billion yuan, or about $58.97 billion, in the first quarter of 2025. This support was given to boost innovation, technology, and manufacturing. The announcement was made by the State Taxation Administration.
The relief included tax cuts, fee reductions, and tax refunds. It was part of a national plan to help companies that focus on science, technology, and modern production methods. The goal is to build a strong base for high-quality growth.
Data from value-added tax (VAT) invoices showed clear signs of progress. Between January and April, high-tech industries in China saw their sales grow by 13.9 percent compared to the same time last year. Services that help turn science and technology into real products grew even faster, rising by 33.6 percent. The digital economy also continued to grow at a steady pace of 9.7 percent.
The manufacturing sector showed strong results too. Companies making digital and high-tech products both reported double-digit increases in revenue. These gains reflect the impact of the tax policies and the rising demand for advanced goods.
China’s tax authority said it is using data tools to make the process faster and more accurate. This means companies can receive support more easily and on time. The aim is to help businesses invest more in research, digital tools, and smart production lines.
These actions are part of China’s larger plan to change its economic model. The government wants to depend less on old industries and more on innovation and clean technology. New industries such as green energy, AI, and advanced electronics are key areas where growth is expected.
The tax relief is designed to help these sectors grow faster. By reducing costs, companies can spend more on creating new products and upgrading their systems. This will help China stay strong in global markets and prepare for future challenges.
In April 2025, China’s industrial output increased by 6.1 percent. This is another sign that the economy is responding well to the support measures. It also shows that businesses are beginning to recover from past slowdowns and are building momentum again.
Other efforts, such as investments in clean energy and funding for tech startups, support this direction. These steps help China build what it calls “new quality productive forces” that will power future growth.
As these policies continue, more updates are expected in the coming months. The government plans to monitor the effects and adjust the measures if needed. For now, the strong data from the first quarter suggests that the current strategy is working.
