China aims to boost equipment manufacturing sector

China will increase export tax rebates for some high-technology equipment and equipment with high added value to support its exports, according to State Council’s recently released stimulus plan aimed at reviving the equipment manufacturing industry.
Under the plan, which is effective 2009 through 2011, China will promote mergers and acquisitions in the equipment manufacturing industry. Companies are encouraged to issue shares, bonds and bills, as well as apply for loans to fund mergers, it said.
The plan is one of Beijing’s 10 industry stimulus strategies launched since January aimed at minimizing the negative impact of the global financial crisis and increasing domestic demand to spur economic growth.