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China will encourage State and private investment in business startups, especially those in the high-tech sector, to help finance new business and innovation, according to a State Council guideline released on Thursday.

China will cut value-added tax rates as part of a tax reduction package amounting to 400 billion yuan (.58 billion) this year to drive high-quality development, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday.

China's biotech industry has also been on the path of tremendous growth and Chinese biotech companies are in very good shape and on a strong trajectory due to tail winds, pointing to improvements in the clinical development environment, more channels to provide priority reviews based on clinical needs, expanding reimbursement over the past few years and the rise of local biotech hubs that provide opportunities for companies to work closer together, he said.

China's central SOEs also have enhanced awareness of environmental protection alongside their overseas operations, the report shows. About 60 percent have set up a related mechanism to ensure environmental protection, up from 52 percent in 2018.

China's banking and insurance regulator also instructed banks to allow enterprises to use their accounts receivable, orders, warehouse receipts and inventories as collateral to secure funds through supply chain financing, which refers to systematic financing arrangements for the benefit of all members of a supply chain.