NANSHAN, widely known for its tech industry in Shenzhen, plans to roll out new industry policies to support the growth of some emerging industries in the district.

The district will introduce 25 measures to specifically target the low-altitude and digital economies, new energy and artificial intelligence, industries deemed the growth engine of the future.

According to a draft plan released recently, firms in these four industries are eligible for a maximum of 100 million yuan (US$13.69 million) in special subsidies.

Nanshan, which aims to build itself into headquarters and research and development bases for China’s low-altitude firms, will provide support to companies involved in whole machine, core components, key materials and operational service of the urban air mobility sector.

The district will offer substantial incentives, such as cash resettlement assistance, to support their development and growth, with a maximum subsidy of 60 million yuan for a single project.

As a trendsetter in the flourishing low-altitude economy, Shenzhen is a magnet for businesses specializing in drone-assisted deliveries, tourism and aerial imaging. Companies like EHang Intelligence are pioneering aerial tourism, while Meituan prioritizes drone-enabled instant deliveries.

Shenzhen, already at the forefront of electric vertical takeoff and landing technology and urban air mobility, highlighted in its 2023 government report a plan to create a dedicated low-altitude economic center.

Nanshan’s push into the sector faces competition from rival district Bao’an, which has already developed an industrial value chain spanning drones, aircraft manufacturing, avionics and satellite navigation, along with materials and software development.

Nanshan also sets its sight on new energy, which has become one of China’s hottest tech industries in recent years, as the country seeks to go green in its economic growth amid its pledge to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

Subsidies up to 1 million yuan per year will be granted to firms for setting up research centers, achieving innovation and luring talent in the fields of energy storage, photovoltaics, hydrogen and digital energies.

The district also seeks to promote the research and development, talent training and applications of artificial intelligence, which, as a key technology for driving digital transformation, is playing an increasingly vital role in accelerating China’s push for industrial upgrading and promoting the in-depth integration of the digital and real economies.

Firms in the district are encouraged to carry out comprehensive and all-time artificial intelligence scenario applications and a maximum one-off subsidy of 2 million yuan will be offered to compensate the construction costs of their demonstration scenarios.

Nanshan, which accounts for more than 70% of Shenzhen’s digital economy output, will also provide favorable policies to digital economy firms in areas ranging from talent cultivation, research and development, application support to financing.

A one-time award of up to 100 million yuan will be granted to those key firms willing to relocate to the district.

(Yang Yunfei)