Source: CCTV.com

02-20-2009 10:53

Special Report:   Global Financial Crisis

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.

The State Council has approved a plan to support the country's light and petrochemical industries.

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.

Cao Jianhai, research fellow of Industrial Economic Research Institute, CAS., says, "if further cut prices and taxes, farmers can afford the cheaper home appliance, it is good for economic growth, and it is helpful to spur consumption."

The plan also abolish the restriction on processing trade for parts of labor-intensive, high-tech, energy saving and environmental products. Meanwhile, the export tax rebate will be further increased on certain light industry products. SMEs in the industry will receive more fiscal and credit support.

Chen Bin, director of Industrial Coordination Dept. NDRC, "the government adopted lots of measures aiming to expand market demand in urban and rural areas, stable and explore international markets and keep light industry develop steadily. Further boost light industry market, expand exports and create more jobs."

Regarding the petrochemical industry, the stimulus plan clearly states the industry will speed up industrial adjustment, optimize industrial strucuture, improve innovation capability and management skill and strenghten industrial competitiveness.

Wang Zhen, professor of China Energy Strategy Research Center, Cup., says, "recur to the stimulus plans on petrochemical industry, advanced and new technologies should be used in processing works. The industry will accomplish structural upgraded and develop large-scale firms through rebuilding the industry and even when setting up some new projects."

Expert also said petrochemical industry is a kind of industry that consume high energy. With the help of revitalizing scheme, the sector is expected to accomplish the great improvement on energy saving and emission reduction.

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Editor:Qin Yongjing