In 2024, the implied tax subsidy rate on R&D expenditures for loss-making large firms in China is forecasted at 0.26, compared to 0.25 in 2023. This forecast suggests an average year-on-year increase of about 1 basis point from 2024 to 2028, indicating a steady rise.
Future trends to watch for:
- Increased government incentives to boost innovation and support economic transition.
- Potential policy adjustments affecting subsidy viability and competitiveness.
- Monitoring global economic developments impacting R&D priorities and funding.
