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China will spend 62.8 billion yuan ($9.2 billion) this year and the next on new technology as part of its efforts to stimulate economic growth, the State Council said on Wednesday. Among the sectors to be given support will be biotech, GM products, large-scale aircraft, broadband wireless technology and new oil, gas and coalbed methane exploration, China's cabinet said following a meeting chaired by Premier Wen Jiabao.
"It is important to strengthen the role of technology in driving economic growth, which is also part of a series of government plans to tackle the global financial crisis," the State Council said in a statement posted on China's official government webiste. (www.gov.cn).
However, the statement did not say if the investment was new, or part of previously announced fiscal spending packages. It also said the cabinet approved a number of policies aimed at boosting China's biotech sector, with the government intent on creating big firms that could compete internationally, as well as encourage the development of small firms in the sector.

Copyright Reuters, 2009

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