Sweeping taxation support helps propel nation's innovative sectors

China's sweeping tax support for innovation-heavy sectors is yielding visible results, with new data showing strong momentum across the digital economy, high-tech industries and robotics — all key drivers of the country's push for new quality productive forces.

Latest data from the State Taxation Administration showed that enterprises in these three sectors collectively enjoyed 1.97 trillion yuan ($274 billion) in corporate income tax exemptions last year.

Total operating revenue in these sectors rose 7.1 percent year-on-year, while overall profits climbed 5.2 percent year-on-year, which underscored the country's shifting industrial priorities.

Digital economy firms, in particular, saw sustained momentum, with total operating revenue and profit rising 5.9 percent and 2.7 percent year-on-year, respectively. Standouts included information transmission, software and IT services, where revenue jumped 11.5 percent and profits surged 13.2 percent.

China's internet giants were among the top beneficiaries. Byte-Dance, Tencent Holdings, and Alibaba Group, along with 10 other leading firms, reported 11.9 percent revenue growth and a robust 19.7 percent surge in profits year-on-year, a sign of how digital technologies are powering broader economic transformation.

High-tech industries, including pharmaceuticals and aerospace, also posted strong gains. Operating revenue and profits rose 8.9 percent and 7.5 percent year-on-year, respectively.

In the scientific R&D and technical services segment, revenue increased 11.7 percent, while the aerospace sector posted a 26.3 percent jump in profits — suggesting high-end manufacturing continues to scale new heights.

Robotics, one of the most-watched sectors for intelligent manufacturing, is also accelerating. In 2024, special-purpose robots, consumer-service robots, and industrial robots recorded revenue growth of 28.4 percent, 12.4 percent and 7 percent year-on-year, respectively.

The sector's average growth rate over the past two years reached 10.2 percent, fueled by multi-scenario adoption across manufacturing and daily life.

The State Taxation Administration emphasized that structural tax cuts will continue to be implemented rigorously, alongside efforts to proactively identify and reach eligible companies.

It also vowed to crack down on fraudulent claims to prevent abuse of incentive policies.

"These policies aren't just short-term support. They're long-term investments in smarter, greener, and higher-value manufacturing," it said.