China High-tech Cities Shanghai – Building An International Startup Ecosystem Government Policies Promote Innovation National “Mass Entrepreneurship And Innovation” Campaign China is hoping that technologies and Internet-driven startups can become the new economic engine, promoting growth of a successful startup ecosystem, replacing the old-style pursuit of GDP growth through manufacturing and industrial exports. The policy aims to compensate investors for as much as 60% of any actual losses resulting from the failure of seed investments in tech startups in Shanghai. The policy covers up to ¥3 million for each unsuccessful investment case, with a limit of ¥6 million per investment firm per year. Risk-compensation Policy for Angel Investors