Legal basis: High-tech enterprises that need state support as mentioned in Article 93, Paragraph 2, Article 28 of the Enterprise Income Tax Law of People's Republic of China (PRC) refer to enterprises that have core independent intellectual property rights and meet the following conditions: (1) Products (services) fall within the scope of state-supported high-tech fields; (two) the proportion of research and development expenses in sales revenue is not less than the prescribed proportion; (three) the proportion of high-tech products (services) income in the total income of the enterprise is not less than the prescribed proportion; (four) the proportion of scientific and technological personnel in the total number of employees of the enterprise is not less than the prescribed proportion; (5) Other conditions stipulated in the Administrative Measures for the Identification of High-tech Enterprises. "State-supported high-tech fields" and the administrative measures for the identification of high-tech enterprises shall be formulated by the competent departments of science and technology, finance and taxation of the State Council in consultation with the relevant departments of the State Council, and shall be promulgated and implemented after being approved by the State Council.
Law of People's Republic of China (PRC) on the Progress of Science and Technology Article 35 The State shall improve the capital market, establish and improve the mechanism for promoting independent innovation, and support qualified high-tech enterprises to use the capital market to promote their own development. The state encourages the establishment of venture capital guidance funds, guides social funds to venture capital enterprises, and supports the entrepreneurial development of enterprises.