SQHG [2024] No. 20

Notice of Qianhai Authority on Issuing the "Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence"

To All Relevant Units:

The "Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence" are hereby issued for compliance and implementation.

Shenzhen Qianhai Authority

September 3, 2024

Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence

To thoroughly implement the "Plan for Deepening the Reform and Opening-Up of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone" and the "Overall Development Plan for Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone", fulfil the relevant requirements of the "Regulations of Shenzhen Special Economic Zone on Promoting the Artificial Intelligence Industry" and the "Action Plan for Accelerating Shenzhen to Become a Pioneer City in Artificial Intelligence", establish an open innovation ecosystem with international competitiveness, accelerate the agglomeration of domestic and international innovation resources, promote the integrated development of artificial intelligence technology with modern service industries and advanced manufacturing, drive the high-quality development and high-level application of artificial intelligence in Qianhai, and create a global pioneer region for artificial intelligence, these Measures are formulated.

I. Promote the Agglomeration of the Artificial Intelligence Industry

(1) Establish the Qianhai artificial intelligence agglomeration zone. Encourage high-growth artificial intelligence enterprises and artificial intelligence business headquarters of enterprises in industries such as advanced manufacturing, finance, logistics, and information services to locate in the Qianhai Artificial Intelligence Agglomeration Zone. For artificial intelligence enterprises actually operating in office buildings in the Qianhai Artificial Intelligence Agglomeration Zone that meet the agglomeration conditions, with a leased area of not less than 150 square meters, and which have not sublet, sub-rented, or changed functions within the lease term, subsidies will be provided at a rate of CNY 60 per square meter per month for 36 consecutive months, with a maximum annual subsidy of CNY 3 million per enterprise, and the subsidy amount not exceeding 50% of the actual rent paid by the enterprise.

(2) Support artificial intelligence enterprises in enjoying income tax incentives. For artificial intelligence enterprises that meet the relevant conditions for Qianhai enterprise income tax preferential policies, corporate income tax will be imposed at a reduced rate of 15% in accordance with relevant state regulations. For overseas high-end and scarce talents employed by eligible artificial intelligence enterprises, in accordance with relevant state regulations, subsidies will be provided for the portion of personal income tax already paid in Qianhai that exceeds the tax calculated based on 15% of their taxable income.

(3) Encourage artificial intelligence enterprises to increase R&D investment. For artificial intelligence enterprises included in the statistics of the Qianhai Cooperation Zone in the previous year with R&D investment exceeding CNY 30 million in the previous year, a reward of up to CNY 1 million will be given based on 3% of the increment in R&D investment in the previous year; for those with R&D investment exceeding CNY 50 million, a reward of up to CNY 2 million will be given based on 5% of the increment; and for those with R&D investment exceeding CNY 100 million, a reward of up to CNY 5 million will be given based on 5% of the increment.

(4) Support investment and financing in the artificial intelligence industry. An artificial intelligence industry investment fund will be established to guide social capital towards start-ups and high-quality projects in the artificial intelligence sector through equity participation in sub-funds or direct investment, and it can serve as a cornerstone investor for enterprises seeking to go public. Strengthen the listing guidance for artificial intelligence enterprises and encourage eligible ones to raise funds through listings on domestic and overseas capital markets. Support business innovation by various financial institutions within the Qianhai Cooperation Zone and intensify financial services such as credit for high-quality artificial intelligence enterprises.

II. Strengthen the Supply of Key Elements for Artificial Intelligence

(5) Enhance computing power supply capacity. Encourage technological innovation in "one cloud, multiple chips, network-enhanced computing, and computing-network integration" to promote the integrated development of digital technologies such as cloud, data, intelligence, edges, and terminals, achieving intelligent scheduling and efficient supply of computing power resources. Advance the construction and application of the Qianhai International Data Dedicated Channel and the National (Shenzhen · Qianhai) New Internet Exchange Center to create an open, convenient, and secure internet environment. Support enterprises in the Qianhai Cooperation Zone to build intelligent computing power centers and intelligent computing power scheduling platforms. With the approval of the Qianhai Authority for support in construction, for projects with a total investment of more than CNY 100 million, subsidies will be provided at 5% of the actual investment in the previous year, with a cumulative maximum of CNY 20 million per platform.

(6) Promote the circulation and application of data elements. Support Qianhai enterprises in developing high-quality data products, advancing data assetization, conducting data brokerage business, and building public service platforms for data element innovation. For public service platforms approved in advance by the Qianhai Authority for construction, with software and hardware investments exceeding CNY 10 million, subsidies will be provided at 10% of the actual investment, with a one-time maximum subsidy of CNY 3 million. Actively introduce data service enterprises, accelerate the development of services such as data collection, cleaning, labeling, evaluation, and asset assessment, and encourage enterprises to establish data sharing platforms such as artificial intelligence training data repositories and standard test data sets. For enterprises included in typical cases or demonstration projects by relevant national authorities in areas such as data asset registration, evaluation, incorporation into financial statements, financial innovation, and cross-border data flows, one-time rewards of CNY 50,000 and CNY 100,000 will be given respectively, with a cumulative reward not exceeding CNY 500,000 for the same enterprise.

(7) Strengthen the development of common and universal technologies. Support Qianhai enterprises in building common technology service platforms based on leading domestically produced, self-controllable, foundational AI software, providing technical support such as algorithms, toolkits, model libraries, and adaptation certifications for SMEs. Encourage the development of universal key technologies in areas such as AI speech recognition, image recognition, voiceprint recognition, motion capture, and natural language understanding.

III. Establish AI Application Demonstrations

(8) Support "Large Model + Industry" application innovation. Encourage the research and deployment of AI industry large models with deep learning capabilities, trained on large-scale data and advanced algorithms, focusing on industry application needs in key sectors such as manufacturing, finance, logistics, and commerce, to form new industry application models. For Qianhai enterprises that independently develop and publicly release AI industry large models with more than 10 market application cases, a one-time reward of CNY 1 million will be provided.

(9) Support the creation of demonstrative application scenarios. Support the creation of AI demonstrative application scenarios in major platform facilities such as airports, ports, and exhibition centers, as well as in industrial application areas such as smart manufacturing, finance, logistics, transportation, commerce, culture and tourism, and healthcare. For AI application demonstration projects in the Qianhai Cooperation Zone assessed by the Qianhai Authority, the project construction entity will receive financial support of up to CNY 2 million, equivalent to 10% of the actual project investment, with no more than 10 projects supported annually.

(10) Support the commercialisation pilot of intelligent connected vehicles. Promote the commercialisation pilot of intelligent connected vehicles across the Qianhai Cooperation Zone, supporting enterprises approved by district-level or higher authorities to carry out commercial passenger operations of intelligent connected vehicles in the Qianhai Cooperation Zone. For each approved operating vehicle owned by the enterprise, a one-time subsidy of up to CNY 200,000 will be provided, based on 50% of the purchase cost and intelligent retrofitting cost, with a cumulative subsidy limit of CNY 10 million per enterprise.

(11) Support the advancement of low-altitude intelligent transport pilots. Explore the pilot of low-altitude airspace management and promote the construction of a low-altitude intelligent connected network. Encourage enterprises to expand the application scenarios of electric vertical take-off and landing (eVTOL) aircraft, and support Qianhai Cooperation Zone enterprises approved by district-level or higher authorities to operate eVTOL commercial routes (with at least one take-off and landing point within the Qianhai Cooperation Zone). Domestic route operators will receive a one-time support of CNY 1 million, while cross-border route operators will receive a one-time support of CNY 2 million.

IV. Improve the AI Industry Ecosystem

(12) Support the construction of technology empowerment platforms. Support Fortune Global 500 companies and their first-tier subsidiaries, or national-level innovation carrier construction units such as new-generation AI open innovation platforms, to take the lead in building AI innovation centers in the Qianhai Cooperation Zone, utilizing their industrial ecological resources to provide services such as AI technology development, application promotion, cutting-edge technology exhibition, and ecological incubation for SMEs. For innovation centers with software and hardware investments exceeding CNY 10 million, a one-time subsidy of up to CNY 3 million will be provided, equivalent to 10% of their software and hardware investments.

(13) Support research and development of key technologies. The Qianhai Authority will organize research and development in the field of AI through a "call for proposals" approach, annually soliciting AI scientific and technical challenges from society that need to be addressed, with a maximum support of CNY 5 million per project. No more than 5 topics will be issued annually, with specific conditions stipulated in separate announcement notices.

(14) Promote the development of industry organizations. For national-level AI and data broker industry organizations that establish a presence in the Qianhai Cooperation Zone, a one-time support of CNY 500,000 will be provided. Encourage AI industry organizations to hold international AI academic forums, industry summits, exhibitions, competitions, and other events in the Qianhai Cooperation Zone in accordance with laws and regulations.

(15) Establish an inclusive and prudent regulatory mechanism. Strengthen the awareness of technological ethics among all responsible entities, support the construction of testing and certification platforms related to AI safety, and provide assessment and certification services in areas such as AI security risks and ethics. Explore innovative AI regulatory models such as "regulatory sandboxes" and "compliance non-prosecution" to create an institutional environment that encourages innovation and bold experimentation with mistakes.

(16) Optimize the industrial innovation support environment. Improve the mechanisms for talent recruitment, training, selection, evaluation, and service guarantees, attracting high-end talent from both domestic and overseas in the field of AI. Support renowned domestic and international universities in building AI science and education platforms in Qianhai, establishing a composite talent training model through industry-academia-research cooperation. Support enterprises in leading or participating in the formulation of international and national standards for AI, strengthening the protection of AI intellectual property rights. Encourage various social organizations to provide services such as entrepreneurship incubation, financing matchmaking, legal consultation, and other services to facilitate the transfer and commercialization of AI research and development achievements. Increase efforts in institutional innovation and exploration, establish and improve diversified funding mechanisms, and promote the deep integration of the AI innovation chain, industrial chain, capital chain, and talent chain. For major platforms and key projects that significantly contribute to the development of the AI industry and the circulation of data elements in the Qianhai Cooperation Zone, the Qianhai Authority may agree on support matters through the signing of cooperation agreements, with the total number of institutions supported through agreements not exceeding 10% of the total number of supported institutions for the current year.

V. Supplementary Provisions

Entities that qualify for these Measures as well as other similar support policies in Nanshan District, Bao'an District, and the Qianhai Cooperation Zone shall not be eligible for repeated benefits. The total amount of support funds received by the same entity under these Measures in a single year shall not exceed CNY 30 million.

"AI Enterprises" referred to in these Measures must meet the following conditions:

(I) For small and micro-sized enterprises, AI business revenue in the previous year accounted for more than 50% of total business revenue. For medium and large-sized enterprises, AI business revenue in the previous year accounted for 30% of total business revenue, or AI business revenue in the previous year was not less than CNY 20 million. The classification of enterprises into small, medium, large, and micro-sized categories follows the criteria specified in the "Classification Method for Large, Medium, Small, and Micro-sized Enterprises in Statistics (2017)" for the "Software and Information Technology Services" and "Industrial" sectors.

(II) The enterprise's main business falls within the following or related scopes:

1. AI software. Including computer vision software, intelligent speech processing software, natural language understanding software, biometric recognition software, virtual reality/augmented reality software, large models, embodied intelligent systems, etc.

2. AI services. Including machine learning services, computer vision services, intelligent speech processing services, natural language understanding services, biometric recognition services, AI data services, AI integrated solutions, etc.

3. AI products. Including AI chips, AI sensors, intelligent robots and dexterous hands, intelligent vehicles, virtual reality/augmented reality devices, intelligent wearable devices, etc.

"Meeting agglomeration conditions" referred to in these Measures means office buildings within the Qianwan, Guiwan, Mawan, Bao'zhong, and Dachan Bay areas of the Qianhai Cooperation Zone. Relevant requirements specifically refer to the implementation of relevant policies on office space funding subsidies in the Qianhai Cooperation Zone.

"R&D investment" referred to in these Measures means expenses for enterprise R&D activities that fall within the scope of the policy for additional deduction of R&D expenses and have been declared to the tax authorities for additional deduction in the previous year as required.

"Actual investment" referred to in these Measures means the total investment costs actually incurred by an enterprise for implementing a declared project, including expenses for information equipment, software, system integration, network communication, cloud leasing, and other aspects.

"Software and hardware investment" referred to in these Measures means the total investment in software and hardware construction incurred by an enterprise for implementing a declared project, including expenses for purchasing hardware equipment, software, databases, and other aspects.

"Data Element Innovation Public Service Platform" referred to in these Measures means a comprehensive service platform that provides services such as industrial incubation, technical consultation, software and hardware support to enterprises engaged in data element-related services.

"Fortune Global 500" referred to in these Measures is based on the latest list published by Fortune magazine.

The terms "not less than," "not exceeding," and "or more" in these Measures include the stated number, while "less than" and "exceeding" do not include the stated number.

The institutions applying for support under these Measures and their personnel must not be within the prohibited period for undertaking or participating in financially supported scientific and technological activities, and must not have engaged in serious violations such as false reporting, fraudulent receipt, embezzlement, misappropriation, withholding of financial funds for scientific and technological progress, conducting scientific and technological research and development and application activities that violate research integrity and scientific and technological ethics, or violating scientific and technological activity management norms.

Institutions applying for rewards and subsidies must conduct actual operations in Qianhai and must not have been listed in the list of severely dishonest entities in accordance with laws and regulations at the time of application (until the end of the public notification period). Specific application details will be separately published by the Qianhai Authority. These Measures shall be implemented from September 14, 2024, and shall be valid for three years. The "Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence" (SQHG [2024] No. 1) shall be simultaneously repealed.

Policy Interpretation of the "Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence"

To thoroughly implement the "Plan for Deepening the Reform and Opening Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone" (hereinafter referred to as the "Qianhai Plan") and the "Overall Development Plan for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone" (hereinafter referred to as the "Qianhai Development Plan"), and to fulfill the relevant requirements of the "Regulations of Shenzhen Special Economic Zone on Promoting the Artificial Intelligence Industry" and the "Action Plan for Accelerating Shenzhen's Development into an AI Pioneer City," the Qianhai Authority has researched and revised the "Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence" (hereinafter referred to as the "Measures") to establish an internationally competitive open innovation ecosystem, accelerate the agglomeration of domestic and foreign innovation resources, promote the integrated development of AI technology with modern service industries and advanced manufacturing, and support Shenzhen in becoming a global AI pioneer city. The relevant policy interpretation is provided below.

I. Revision Background

The Third Plenary Session of the 20th Central Committee of the Communist Party of China emphasised the need to advance reforms in the face of a new round of technological and industrial transformation, and identified artificial intelligence as one of the eight "strategic industries". In recent years, artificial intelligence has continuously broken through and evolved iteratively, becoming an important driving force behind the new round of technological and industrial transformation. It is a crucial area for cultivating and developing new quality productive forces. General Secretary Xi Jinping has pointed out that accelerating the development of new-generation artificial intelligence is an important strategic lever for us to win the initiative in global technological competition. It is an important strategic resource for promoting leapfrog development in China's science and technology, industrial optimisation and upgrading, and an overall leap in productive forces. The Qianhai Plan requires Qianhai to build a Shenzhen-Hong Kong artificial intelligence industrial cluster and vigorously promote the construction of intelligent computing infrastructure. Based on its own advantages, Qianhai is systematically laying out around six key dimensions of "large computing power, big data, large models, large applications, large scenarios, and large-scale security". It promotes exchanges and cooperation in the artificial intelligence industry between Shenzhen and Hong Kong, bringing together top global talent, institutions, and major platforms in artificial intelligence. This creates an open and innovative ecosystem for artificial intelligence with industrial clustering, concentrated factors of production, and integrated applications.

II. Main Content

The Measures consist of five parts with 16 specific support measures.

The first part, "Promoting the Agglomeration of the Artificial Intelligence Industry", includes four measures. It supports high-quality artificial intelligence enterprises to concentrate in the Qianhai Cooperation Zone and grow bigger and stronger through rental subsidies, income tax incentives, R&D investment subsidies, and investment and financing support.

The second part, "Strengthening the Supply of Key Elements for Artificial Intelligence", includes three measures. It provides key support for computing power and data, which are the two critical elements supporting the development of the artificial intelligence industry. It focuses on promoting the synchronous development and construction of intelligent computing power centres and computing power scheduling platforms, facilitating the circulation and utilisation of data elements, and unlocking the value of data resources through institutional innovations. It enhances the development of common and general technologies in artificial intelligence and builds common technology service platforms.

The third part, "Creating Demonstration Applications of Artificial Intelligence", includes four measures. It focuses on supporting the accelerated implementation and application of cutting-edge artificial intelligence technologies by promoting "large model + industry" application innovation, creating demonstration benchmarks for application scenarios, conducting commercialisation pilots for autonomous vehicles carrying passengers, and promoting pilot projects for low-altitude intelligent transportation. This forms a commercial closed loop.

The fourth part, "Improving the Artificial Intelligence Industry Ecosystem", includes five measures. It focuses on supporting the construction of technology empowerment platforms, supporting research and development of key technologies, promoting the development of industry organisations, and establishing inclusive and prudent regulatory mechanisms. This accelerates the aggregation of domestic and foreign innovation resources, fosters an environment for cooperation and exchange in the artificial intelligence industry, and builds an open and innovative ecosystem with international competitiveness. It optimises the industrial innovation supporting environment and promotes the deep integration of the artificial intelligence innovation chain, industrial chain, capital chain, and talent chain.

The fifth part is the "Supplementary Provisions". It mainly covers the scope of support, implementation requirements, and validity period of the Measures.

Infographic | Measures of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority for Supporting the High-Quality Development and High-Level Application of Artificial Intelligence