China issues opinions to encourage entrepreneurship, innovation

China's State Council has issued opinions to instruct the public on entrepreneurship and innovation, according to an announcement Wednesday.

Mass entrepreneurship and innovation are important for implementing a new growth strategy as China enters a "new normal" phase of slower growth.[Special coverage]

China needs to develop the "twin engines" of popular entrepreneurship and mass innovation, alongside increased supplies of public goods and services to drive development, Premier Li Keqiang said in the government work report at the 2015 National People's Congress annual session.

The State Council vowed to provide a better environment for popular entrepreneurship and mass innovation by lowering barriers, strengthening public services and encouraging college students, scientists and engineers to start new businesses.

China will pilot equity-based online crowd funding and encourage banking and financial institutions to provide loans as financing channels to support small businesses, said the announcement.

More than 1,000 investment agencies fund entrepreneurs in China, holding a capital sum of over 350 billion yuan (56.8 billion U.S. dollars), said Wan Gang, minister of science and technology, on Wednesday at a press conference on the sidelines of the national legislature's annual session.

Technology deals in 2014 increased 15 percent year on year to hit 857.7 billion, said Wan.

China has 115 university science parks and over 1,600 technology business incubators, which help startup technology companies develop by providing services such as management training or office space, said Wan.

These incubators and science parks are incubating over 80,000 enterprises and hiring 1.7 million employees.

It is important to let the market play a decisive role in resource allocation, Wan added.