Shandong Province issues 50-measure fiscal support package for private economy

Mechanism

Lu Cai Ban Fa [2025] No. 8 is a horizontal, cross-sector provincial fiscal support package rather than a single-fund or single-sector subsidy program. It sets out 50 measures across ten categories, each assigned to a lead provincial department. Representative disclosed quanta include: R&D subsidies of up to 20% of project budget (up to 35% for agricultural projects) for ~100 major science-and-technology projects/year; a flat 10% R&D-investment subsidy for integrated-circuit enterprises (vs. up to 5% for other private enterprises), capped at RMB 5 million/enterprise/ year; up to RMB 10 million one-time awards for provincial-standard "data infrastructure" projects; an AI-compute procurement rebate of up to 5% of contract value (capped at RMB 5 million/enterprise); technical- transformation equipment-update subsidies of up to 10% of purchase cost (capped at RMB 5 million/enterprise); interest subsidies on technical- transformation loans of up to 35% of the 1-year LPR (capped at RMB 20 million/project); an export-credit-insurance-linked "Lu Mao Dai" trade- finance scheme where the province absorbs up to 90% of principal loss after insurance payout; and a government-procurement set-aside reserving 45%+ of procurement above the SME threshold for small/micro enterprises. No single aggregate budget figure is disclosed across all 50 measures, so severity is anchored on the breadth of the package (ten policy domains, province-wide, multi-year through 2027) combined with the largest individually-disclosed per-project caps rather than a summed total.

Fetched directly from czt.shandong.gov.cn (HTTP 200, ~2s) — no unreachable-origin issue for this Shandong provincial portal, unlike the Guangxi tarpit case noted in prior wakes.

Downstream implications

• Sits alongside the existing china-domestic-demand-stimulus cluster of

province-level fiscal packages (e.g. the 2025-08-04 Henan cost-reduction package) as further evidence of a 2025 wave of sub-national fiscal stimulus targeted at private enterprises, layered on top of national PBOC relending and MOF programs already tracked in that theme.

• The integrated-circuit-specific 10% R&D subsidy (vs. 5% baseline for

other private enterprises) is a concrete sectoral tilt toward semiconductor self-reliance funded through general provincial fiscal channels rather than a dedicated chip fund.

• The "Lu Mao Dai" export-credit-insurance-linked financing scheme

(measure 26) is a foreign-trade-facilitation instrument worth tracking alongside other provincial trade-finance vehicles for SME exporters.

Open questions

• No aggregate budget total is disclosed for the 50-measure package; a

later pass through Shandong Provincial Department of Finance fiscal-year-end disclosures could establish total fiscal outlay.

• Uptake/disbursement data for the integrated-circuit R&D subsidy

(measure 4) is not yet available to gauge actual sectoral impact.