IT and electronics sectors to be boosted

19 Feb, 2009

China said on Wednesday it would boost its electronics and computer sectors with trade financing, credit guarantees and continued export-tax rebates to help them weather the global financial crisis. However, a government statement on the decision offered no specifics on policy steps under the plan, one of several announced recently to help domestic industries cope with falling foreign orders amid the global downturn.
The plan was approved on Wednesday in an executive meeting of the State Council, or Cabinet, chaired by Premier Wen Jiabao, a statement on the government website said. The plan would focus on encouraging industry innovation and consolidation and on boosting the competitiveness of the domestic electronics and information technology sectors.
The announcement follows recent moves to help the textile, automobile, shipbuilding and other sectors as the world's deepening economic troubles sap overseas demand for Chinese-made goods. Reflecting the hard times the computer industry is facing, Chinese computer giant Lenovo announced last month it would cut 2,500 jobs, roughly 11 percent of its world-wide workforce, after suffering losses amid the global meltdown. Lenovo is the world's fourth-biggest personal computer maker.

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