(Yicai) Dec. 19 -- The government of Shenzhen, China’s southern technology powerhouse, has unveiled a series of policies to support the development of its artificial intelligence sector.

The policy package released by local government yesterday includes 18 measures, 15 of which involve financial support. The other three, while not specifying exact sums, include incentives such as “favorable prices” and “funding support.”

Shenzhen will provide annual funding of CNY500 million (USD68.5 million) to help local firms lower costs for the research, development, and training of AI models. It will also allocate CNY50 million (USD6.9 million) a year to promote the sharing, opening-up, and trading of data, and CNY100 million (USD 13.7 million) to lower the costs of AI model applications.

Moreover, the city will invest as much as CNY300 million a year to support research in cutting-edge AI disciplines and the development of key technologies in targeted application areas. Individual enterprises may receive funding of up to CNY10 million yuan.

Shenzhen is often referred to as China's "Silicon Valley" due to its thriving tech landscape, which includes leading businesses such as Huawei Technologies and Tencent Holdings. It ranked 16th in the 2023 Global AI City Innovation Index compiled by Tsinghua University’s data analysis and mining services provider AMiner and Zhipu AI, a generative AI startup. It was fifth in China, coming in behind Beijing, Shanghai, Hong Kong, and Hangzhou.

The city also plans to exempt eligible micro, small, and mid-sized AI compnies and startups from paying rent for six months to three years. Government-accredited AI industrial park operators will receive a CNY2 million (USD274,000) reward.

Furthermore, Shenzhen aims to provide a policy support package to Chinese and foreign AI talent who set up business in the city. The benefits include career platforms, research funding, and living allowances.

The city needs to boost its basic research in the short term by attracting outside talent and enterprises, a local source in information technology told Yicai. The new measures, which aim to bring in top-tier professionals and boost fundamental innovation, are commendable, they added.

Editors: Tang Shihua, Futura Costaglione