China to Give $2.9 Billion Subsidies for Technology Spending
Source: bloomberg Date: 2009-05-08
China will give 20 billion yuan ($2.9 billion) this year in interest rate subsidies on bank loans to help the nationâ's steel, petrochemical and automobile companies upgrade their technology, the State Council said.
China will also support such improvements in the nonferrous metals, textile, food, alternative energy and telecommunication industries and boost the percentage of China-made equipment used in key national projects, according to a report of a cabinet meeting today posted on the governmentâ's Web site.
China's government in November removed lending restrictions and unveiled a 4 trillion yuan stimulus package, including spending on roads and railways as well as support for 10 key industries, to help achieve an economic growth target of 8 percent this year. Premier Wen Jiabao has said credit growth will rise by at least 5 trillion yuan in 2009 to help fund the stimulus and prevent an economic slump.
The interest subsidies for supporting technology upgrades may stimulate an additional 460 billion yuan in investment from companies and local governments, the State Council statement said.
