There is a fund called Innovation Fund for Small Technology-based Firms which was established in China by the Ministry of Science and Technology at the national level in 1999. Every year about 4 billion RMB are provided to several thousand small technology-based firms in China. However, only Chinese companies will qualify for the fund. Therefore, foreign enterprises would need to “become a Chinese legal person” first to qualify for the funds. The usual practice is to open a foreign invested enterprise in China, including wholly foreign invested enterprises, equity joint ventures and contractual joint ventures. Once established as a Chinese entity, the company can apply to the local Administration of Science and Technology at the provincial level who will assist you for the application of the fund. For example, if a foreign invested enterprise is set up in Beijing, it can apply for the fund through the local Beijing Administration of Science and Technology.