China Industry Stimulus Plan auto steel machinery

China's Industry Stimulus Plans

Within 6 weeks, China unveiled stimulus plans for 10 industries, on the top of its 4 trillion yuan stimulus package announced four months ago. The industries are auto, steel, shipbuilding, textile, machinery manufacturing, electronics and information, light industry, petrochemicals, non-ferrous metals and logistics. The measures focus on technology innovation, infrastructure upgrade, closing low-efficiency production, mergers and acquisitions, tax rebates and subsidies.

Official: No protectionism in China´s economic stimulus plans | Video: Press Conference on China´s stimulus plan on key industries

Nonferrous Industry

Feb. 25, 2009
The State Council has unveiled support plans for the nonferrous industry.
Hightlights in plan:
* Stabilize and enlarge domestic market and give policy support for exports
* Control total output and remove outdated production
* Upgrade technology

What to do

China to push consolidation in non-ferrous sector

The government will encourage restructuring among major copper makers such as Aluminum Corp of China Ltd (Chalco), Jiangxi Copper, Tongling Nonferrous and Jinchuan Group Ltd, the newspaper said.

Light Industry

Feb. 19 2009
China unveils stimulus package for light industry

Hightlights in Plan:
*Expand urban and rural consumption
*Strengthen food security and brand marketing
*Further increase tax rebates on certain exports

Reactions:

Telephone interview on stimulus plan for light industry

For more on this, we are joined on the line by Professor Liu Baocheng, of Beijing´s School of International Business Management at the University of International Business and Economics.

Read the plan:

Stimulus plans for light industry

The State Council has approved a plan to support the country´s light and petrochemical industries. This is the latest action, following massive tax cuts and subsidies, to help a wide range of industries this year.

Ship building Industry

Feb. 11 2009
China approves stimulus plan for ship building industry

Hightlights in Plan:
*Finance major shipbuilding projects
*Expand market demand for ships
*Encourage mergers and acquisitions
*Upgrade innovative technologies

Reactions:

Experts applaud shipbuilding stimulus plan

Experts are applauding the support plan for shipbuilding industry. They say the plan will not only help solve the short-term problems, but also aim at boosting the whole industry´s prosperity in the long term.

Industry association:

China forecasts 50% cut in ship orders

This year would likely be a tough one for ship building in China with orders down around 50 percent, as the global financial crisis has bitten into the industry.

China´s ship orders may halve in 2009

Li Dong, Official of Ministry of Industry and Information Technology said "Orders for major shipbuilders have already been set up until 2011, with some even to 2012."

Textile Industry

Feb. 4, 2009
The State Council has unveiled support plans for the textile industry.

Highlights in plan:
* Increase tax rebates for exports to 15%
* Shut high-polluting and low-efficiency factories
* Urge financial support to textile firms

Auto Industry

Jan. 14, 2009
The State Council has unveiled support plans for the auto industry.
Highlights in plan:
* Support upgrading technologies
* Improve credit system for car loans
* Expand automakers through M&A
* Provide allowances to farmers to upgrade vehicles

Measure:

China aims to cut auto groups to 10 from 14

A Chinese government plan to strengthen the automobile sector aims to reduce the number of major auto-making groups through mergers to 10 at most from 14

Gov´t subsidizes new-energy autos for public transportation

The government will offer subsidies for purchases of new-energy cars used for public transportation. Subsidies for a bus 10 meters long could be up to 600,000 yuan.

Car finance encouraged to boost auto industry

Analysis:

[Essay] Why do prospects only look good for China´s auto market?

China will still be unable to surpass the US in total sales volume in the auto market this year. However, China´s auto market is becoming a powerful new player, according to the analysis of experts in the industry.

[Video] Interview: Expert on gov´t latest move to boost auto, steel industry

Logistic Industry

Feb. 25, 2009
The State Council has unveiled support plans for the logistic industry.
Hightlights in Plan:
* Expand market demand and develop in line with producers and trade companies
* Accelerate M&A
* Promote logistic development in major sectors

Comment

"The bailout will improve the enterprises´ operational and managerial processes. It will help to enlarge the country´s logistics market, and speed up the industry´s development. Logistics has been in China for 30 years, and this is the first complete bailout to support the industry."

Petrochemical Industry

Feb. 19 2009
China unveils stimulus package for petrochemical sector

Hightlights in Plan:
*Safeguard production of pesticide
*Expand credit support to petrochemical firms
*Improve corporate governance of those companies

Reactions:

Expert talks on stimulus plan for petrochemical industry

Professor Liu Baocheng, of Beijing´s School of International Business Management at the University of International Business and Economics talks on stimulus plan for petrochemical industry.

Read the plan:

Stimulus plans for petrochemicals

China has reaffirmed its efforts to promote home appliance sales in rural areas. A 13 percent subsidy will now be offered to farmers who buy microwaves and ovens. But the new plan now allows every household to buy two of each item at a reduced rate, rather than just one.

Electronic Industry

Feb. 18 2009
China approves support plan for electronics and information industry

Hightlights in Plan:
*Improve structure of industries
*Upgrade digital video products
*Boost innovation

3G blooms in China:

China finally awards telecom operators 3G licences

China´s Ministry of Industry and Information Technology has issued licenses for next generation, or 3G mobile networks.

3 years plan:

Government plans to boost innovation and technology

China has approved a plan to support the country´s electronics and information industry.

Market Analysis::

China´s trade of electronics, information products total $885 bln last year

China´s imports and exports of electronics and information products reached 885.4 billion U.S. dollars in value last year.

Machinery Industry

Feb. 4, 2009
The State Council has unveiled support plans for the machinery industry.

Highlights in plan:
* Offer huge incentives for innovation and R&D
* Upgrade technology and raise competitiveness

Senior leader urges innovation, breakthroughs in machinery industry

China´s top political advisor Jia Qinglin on Thursday called for innovation and more breakthroughs in key technologies in the country´s machinery industry so as to make it globally competitive.

[Reaction] Machinery manufacturers welcome gov´t support

"Amid the global financial crisis, the government is encouraging companies to adjust industrial structures, as well as to use homemade machinery. All of these measures will definitely help companies to upgrade their products."

[Expectation]"We hope that the equipment importing policies will be further regulated, allowing domestic companies to enjoy the same treatment as foreign companies in Chinese market. For example, it is unreasonable to tax on imported parts, while the tax of importing whole sets of equipment has been exempted?"

Steel Industry

Jan. 14, 2009
The State Council has unveiled support plans for the steel industry.

Highlights in plan:
* Promoting industrial restructuring
* Supporting technology innovation
* Developing new-energy cars and encouraging brand-building

Measure:

China seeks slimmer, more efficient steel sector

China is considering raising steel industry standards to force its mammoth steel sector to slim down and consolidate, leaving China - the world´s top producer and consumer - with a few globally competitive steelmakers.

China regulator approves launch of steel futures

China Securities Regulatory Commission said on Thursday it had approved the launch of steel futures by the Shanghai Futures Exchange. The exchange will be trading steel wire and reinforced bar futures.

Analysis:

China´s steel exports to decline by a quarter

China´s steel exports are likely to fall by up to 25 percent year-on-year to 45 million tons this year, according to Guosen Securities analyst Zheng Dong.

China´s steel sector poised for rebound after 50 bln yuan of Q4 losses

China´s steel sector might have lost up to 49.6 billion yuan (about 7.3 billion U.S. dollars) in the fourth quarter as prices plunged and inventory built up, an industry association said.