(Yicai) Dec. 18 -- Taicang, a county-level city in China’s economically developed Yangtze River Delta region, has issued policies to attract entrepreneurial university graduates, including sweeteners such as startup capital and allowances for housing and settling-in.

Starting on Jan. 1, the city government will give CNY50,000 (USD7,020) to each startup launched by fresh university graduates who settle in Taicang, according to the policy document it released last week.

The incentives are aimed at making Taicang the first choice for college graduates who want to start an innovative business in the Yangtze River Delta area, a city official told Yicai. “As long as the startup is registered in the local university’s science and technology park, CNY50,000 entrepreneurial funding will be paid at once,” the person noted.

The municipal government will also award funding of between CNY200,000 and CNY500,000 (USD28,060 and USD70,150) to the winners of the national college student innovation and entrepreneurship competition who settle in the city, which is under the jurisdiction of Suzhou.

To promote local employment, it plans to reduce the cost of entrepreneurship for college students by introducing other types of subsidies, such as three-year rent-free venues for entrepreneurial projects that meet certain conditions.

On top of that, Taichang will set up an angel investment fund of CNY300 million (USD42.1 million) to make available as much as CNY3 million (USD420,830) in equity investments, loans, and other subsidies to the best student entrepreneurial projects in the area.

“Taicang is aiming for innovative and high-quality economic development by holding on to talent, an effort which should be recognized," Zeng Gang, director of East China Normal University’s urban development institute, told Yicai. Attracting investment to drive youth employment should be the city’s priority, Zeng said.

Anji county, under the administration of Huzhou, issued policies similar to those of Taicang last month. And while they fight over talent, nine cities in the Yangtze River Delta region announced an alliance on young talent in science, technological innovation, and entrepreneurship on Dec. 16 to entice them to the area.

But considering the high risks involved with startups in the current economy and the usual lack of business experience among new graduates, it is debatable whether local government policies should be championing entrepreneurship among fresh graduates.

Editor: Futura Costaglione