R&D expenditure of software and IT businesses China 2022, by segment
In 2022, companies in the IT service segment spent over 622 billion yuan on research and development in China. According to the Chinese government's plans tech-companies were able to receive tax benefits for R&D expenditures to support its domestic tech industry. However, in recent years, Beijing wanted to shift the focus away from the broad tech sector towards designated high-tech industries by tightening the requirements for companies to qualify for "key software enterprises".