The implied tax subsidy rates on R&D expenditures for profitable large firms in China are forecasted to gradually increase from 0.20 in 2024 to 0.23 by 2028. As of 2023, these rates stood slightly lower given the upward trend forecasted.

Key trends to watch for in the future include:

The gradual increase, suggesting a potential boost for innovation and competitiveness among large firms in China.
Year-on-year stability with small incremental increases, indicating potential government policy support for innovation-driven growth.
A trend towards greater fiscal incentives for R&D investments by large firms, potentially impacting sectoral growth and technological advancements.