Longhua District has issued several measures supporting the high-quality development of network and communication industry to strengthen its position as a national innovation hub. The policy focuses on research and development (R&D) innovation, enterprise cultivation, competitiveness enhancement, and resource support, offering targeted incentives to drive industry advancement.

The measures prioritize breakthroughs in core technologies and critical components such as 5G/5G-A networks, base station, optical communication and server storage chips, and industrial internet applications.

Companies engaged in municipal-level R&D projects for network device chips, critical components utilizing 5G or 5G-A technology and core network technology, including optical active devices, RF devices, filters, and 5G modules, will receive tiered grants up to 2 million yuan.

The district also supports equipment and infrastructure upgrades in relevant network and communication enterprises and automation in manufacturing lines, aligning with industrial investment guidelines, while promoting 5G integration in various sectors. New services, products, business models and projects on 5G application in smart city, smart home appliance and industrial internet will receive grants up to 100,000 yuan. Exemplary Industrial internet projects at national, provincial, municipal and district level may secure funding covering 50% of costs, with rewards up to 2 million yuan for city-level initiatives.

An NAS private cloud serve from Longhua-based enterprise UGreen. Longhua Government Online

To cultivate a robust enterprise ecosystem, the policy tailors support for trillion-yuan industry leaders through dedicated liaison services and billion-yuan firms via establishing supply chain partnerships with “little giant” SMEs. Smaller businesses benefit from growth incentives, talent recruitment aid, and listing assistance. Procurement collaborations between manufacturers and suppliers are incentivized, with rewards up to 5 million yuan for annual purchases exceeding 100 million yuan.

Global and domestic market expansion is encouraged through innovation product listings and exhibition participation at home and abroad, while industry events on future technologies like satellite communication, radio, submarine cable communication, and IPv6 qualify for up to 500,000-yuan grants. Award-winning firms in national competitions receive 500,000-yuan bonuses.

Spatial and financial safeguards underpin the strategy. New entrants to innovation hubs gain preferential access, while industrial parks receive subsidies for smart upgrades. Financial tools like low-interest loans and credit guarantees ease capital constraints. Top-tier talent teams driving technological breakthroughs are prioritized through tailored recruitment programs.

By integrating innovation, enterprise empowerment, and systemic support, Longhua aims to solidify its role as a national leader in the network and communication sector, bridging the digital and physical economies.