China's State Council has issued a set of guidelines aimed at promoting startups as a way to combat the effects of the economic slowdown. The measures, which were announced on Tuesday, June 16, essentially eliminate bureaucratic restrictions on startups and seek to create a social ecosystem that supports mass entrepreneurship and innovation, particularly for high-tech and internet-based companies.

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Among other things, the measures, which are a part of the ongoing economic reform, will see the government facilitate funding for startups from banks and enable them generate funds from the bond market and the stock exchange.

The State Council also vowed to strengthen financial policies to boost entrepreneurship and expand State investment into startups, particularly in rural areas, in order to create employment and empower the economy.

This is not the first of such guidelines that the State Council has released. In March, the cabinet laid out a set of measures aimed at encouraging entrepreneurs to network with one another to promote the sharing of ideas and resources. The government also vowed to eliminate bureaucratic red tapes, develop supportive policies, train entrepreneurs and create a conducive environment for entrepreneurs to blossom.

Now, authorities have set out to develop public platforms to support entrepreneurs and encourage people (i.e. college students, graduates, professionals and expatriates) to start their own businesses. According to the latest announcement, the government will help college students create their own businesses by providing financial assistance and expert consultation.

China's internet sector is developing at a rapid pace. Last month, BrandZ listed three Chinese tech companies among its Top 100 Global Brands. Experts say while there are ample opportunities for growth in China's internet market; many startups struggle to compete with their international counterparts.

Since the beginning of the year, China's economy has grown at its slowest pace in six years. Experts say the economy may start to show signs of recovery in the second half of the year. The government has unsuccessfully tried to encourage banks to lower their interest rates and offer more loans to increase spending.

Authorities hope that by supporting startups, the government can find a new source of economic growth that is different from those that the nation has traditionally relied on. 

TagsChina Supports Entrepreneurship and Innovation, China startups