What are the government subsidies

1, policy subsidies. This subsidy is often because the state to achieve certain social benefits, in requiring enterprises to make some kind of commitment or sacrifice when given to the enterprise's specific compensation, it is related to the enterprise's business; for example, the government in order to regulate food, public transportation, water and electricity and other closely related to the livelihood of the country some of the enterprise's product prices, the implementation of these enterprises policy subsidies to make up for the loss of the price of the products they are subjected to.

The production costs of these enterprises are affected by the market, product price regulation and product cost marketization makes the enterprise's income and cost can not be in the same level of the market for the proportion, the level of profitability has been suppressed to varying degrees, and even some enterprises incurred losses. In addition, the use of three-waste processing products or three-waste treatment enterprises, in order to assume social responsibility for environmental protection, will inevitably need to incur more costs, but the selling price of its products will not be increased, so the same impact on the level of profitability of enterprises. For this type of enterprise, the government can only subsidize the way to make up for its normal operation due to the policy impact of the loss suffered.

2, financial supportive subsidies. This type of subsidy is the government from a certain aspect or with the help of a - matter to provide financial support to enterprises to promote the development of enterprises, rather than as a very loss of enterprises or bear a specific cost of a compensation and reward, such as science and technology special allocations, high-tech industry special subsidies, recognized high-tech achievement transformation projects by the government to return the project site land-use fee

3, donation subsidies. This type of subsidy often exists in the micro-profit and loss-making enterprises, mostly non-policy, its main purpose is to make the enterprise to turn a loss into a profit or make a significant change in the profitability of the enterprise. For example, when the listed company for various reasons suffered special treatment or about to be delisted, the local government in order to keep its place in the capital market, in order to drive the development of the local economy, often to the listed company to lend a helping hand, through a variety of names to give its financial subsidies or a variety of tax incentives.