Tax breaks for small and micro-sized firms will be extended till the end of 2016, the State Council announced on April 2.

The State Council is also considering raising the tax threshold significantly above the current level of 60,000 yuan ($9,666). The statement that followed the State Council's meeting on April 2 said that small and micro businesses are vital to employment and revitalizing the market.

The policy that a company with annual taxable income under 60,000 yuan would have its business income tax halved during 2012-15 was made in 2011.

Trade With HK, Macao

The Chinese mainland's trade with Hong Kong totaled $46.92 billion in the first two months of the year, slumping 21.4 percent year on year, the Ministry of Commerce (MOFCOM) said on April 2.

The mainland's exports to Hong Kong dropped 20.9 percent year on year to $45.27 billion during the January-February period. Hong Kong's exports to the mainland totaled $1.65 billion, down 33.2 percent year on year.

Mainland authorities approved 1,393 Hong Kong-invested projects during the period, a year-on-year decrease of 3.5 percent. Hong Kong's investment on the mainland increased 22.4 percent year on year to $12.7 billion during the period.

As of the end of February 2014, mainland authorities had approved a total of 362,291 investment projects from Hong Kong, with a paid-in capital of $678.37 billion. Hong Kong's investment had accounted for 47.9 percent of the mainland's total inward overseas direct investment.

Trade between the mainland and Macao decreased by 16.5 percent year on year to $480 million during the first two months of the year, according to the MOFCOM.

The mainland's exports to Macao dropped 5.7 percent year on year to $440 million during January and February. Macao's exports to the mainland totaled $40 million, a decrease of 63.8 percent year on year.

Mainland authorities approved 33 Macao-invested projects during the period, a year-on-year increase of 10 percent. Macao's investment on the mainland increased 54.7 percent year on year to $120 million during the period.

As of the end of February 2014, mainland authorities had approved a total of 13,485 Macao-funded projects, with a paid-in capital of $11.47 billion. Macao's investment had accounted for 0.8 percent of the mainland's total inward overseas direct investment.

Tech Trade

Beijing concluded 62,700 technology contracts in 2013, with the total tech trade volume reaching 285.1 billion yuan ($45.9 billion), accounting for 38.2 percent of the country's total, up 16 percent from 2012, according to the Beijing Municipal Science and Technology Commission.

Of the city's tech trade volume, 161.6 billion yuan ($26.03 billion), or 56.7 percent, came from other provinces, indicating that Beijing's tech trade is becoming a powerful driving force for the national economic transformation.

The added value of tech transaction in Beijing was 183.9 billion yuan ($29.62 billion), up 11 percent from 2012, accounting for 9.4 percent of the city's GDP. This signals that the tech market is making even greater contributions to the city's social and economic development.

Beijing's foreign tech trade volume hit 65.4 billion yuan ($10.53 billion) in 2013, up 56.4 percent, centering on high-end tech fields such as environmental protection, software and telecommunications.