Twenty Cities to Become Trial Cities for Service Outsourcing

On January 15, 2009, the General Office of the State Council released the Reply on Issues Concerning Promoting the Development of Service Outsourcing Industry (the "Reply"). The Reply approved 20 cities, including but not limited to Beijing, Tianjin, Shanghai, Guangzhou and Shenzhen, to be trial cities for service outsourcing, and provided a series of measures to encourage and support the development of service outsourcing in these 20 pilot cities. The encouraging and supporting measures cover tax incentives (for Suzhou Industrial Park only), labor administration support, financial subsidies for branding and IPR protection, and IPO support, among other incentives. The implementation of the Reply will provide a better environment from a governmental policy perspective for the service outsourcing industry in the 20 pilot cities.

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