)
Coinciding with Prime Minister Narendra Modi’s ‘Make in India’ pitch and seeking to retain its own manufacturing prowess, the Chinese government launched a ‘Made in China’ campaign, with a host of tax concessions.
China would encourage high-tech imports, research and development (R&D) to upgrade ‘Made in China’, a decision by the Chinese government said.
Under the new campaign, China will use tax breaks to encourage enterprises to upgrade their equipment and increase R&D efforts to improve the manufacturing industry.
Companies that bought new R&D equipment and facilities after January 1 or possess minor fixed assets will have taxes reduced on the basis of value, the Cabinet, presided over by Premier Li Keqiang, has decided.
Imported high-tech equipment will also enjoy tax deductions in aviation, bio-medicine production, manufacturing of railway and ships, electronics production, including computer and telecommunications, instrument production and those used in making IT products and software, state-run Xinhua news agency reported on Thursday.
The announcement came on a day when the Indian Embassy here, Consulates in Guangzhou, Shanghai and Hong Kong held special investment promotion events to showcase the ‘Make in India’ campaign.
China’s new move aims to prompt technical improvement of companies, especially innovation of small and medium-sized enterprises, which in the past three decades propelled it to become the world’s second-largest economy and made it a powerhouse of the manufacturing industry.
The Cabinet asked government organs to implement the new measures as soon as possible to arm ‘Made in China’ with advanced technology and equipment, encouraging more competitive products with high added value, the report said.
China's manufacturing sector, a key driver of its economic growth, is regarded highly competitive in the global market.
Analysts believe the measures will not only start a new round of innovation but also spur fixed asset investment, and in the bigger picture contribute to stabilising economic growth.
