China has shown unreserved support for innovation and entrepreneurship in the past few years. But it turns out that these support offers are good only under certain conditions and complying with the taxation laws of the country.

The industry and commerce regulator of Beijing Chaoyang District issued a notice yesterday to suspend its affiliated shared space innovation centers and incubators, which offer workplaces for small and medium-sized firms, from making new project recruitments, local media is reporting (in Chinese).

This notice was extended because some of the companies being included in the program failed to adapt to the unified taxation system, which is required by the regulator. The present notice takes effect as from today.

As of present, however, there are no signs that other administrative regions are following suit. A representative from Haidian, another Beijing district home to lots of shared working centers, told local media that they don’t have plans to make similar adjustments.

Among a series of preferential policies and financial supports, entrepreneurship in China has grown at an exponential rate in the past decade. The government sees innovation as a new engine for growth as evidenced by the government venture capital fund worth ($6.5 billion) to support start-ups in emerging industries.

Emma Lee (Li Xin) was TechNode's e-commerce and new retail reporter until June 2022, when she moved to Sixth Tone to cover technology and consumption. Get in touch with her via or Twitter.

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