The Chinese government provides several incentives to promote green energy and eco-friendly solutions.

Tax Reductions and Exemptions
Companies investing in approved renewable energy projects within designated economic zones may qualify for corporate income tax reductions of up to 15%, as outlined in the Preferential Catalogue for Environmental Protection, Energy Conservation, and Water Conservation Industries (National Development and Reform Commission).

Subsidies and Grants
Government subsidies are available for projects that enhance environmental sustainability, particularly for solar and wind energy initiatives. Although nationwide feed-in tariffs have been phased out, localised subsidy programmes may still exist.

Local Government Programmes
Many local governments provide incentives such as preferential land use policies and financial support. For instance, in Zhejiang, companies investing in green technologies or sustainable manufacturing may benefit from lower land leasing fees or priority access to industrial land. These incentives significantly reduce the costs of investing in green technologies, making it more attractive for European SMEs to enter the Chinese market.