Nov. 9 2008
4 trillion yuan stimulus package
Jan. 14 2009
Support for steel and auto sectors
Jan. 21 2009
850 bln yuan in 3 year in medicare reform
Feb. 4 2009
Support for machinery and textile industries
Feb. 11 2009
Support for shipbuilding industry
Feb. 18 2009
Support for electronics & informational industries
Feb.19 2009
Support for light & petrochemical industries
Related Article: On American and Chinese Economic Stimulus Plan
BEIJING, Feb. 25 (Xinhua) — China’s State Council on Wednesday announced support plans for the country’s nonferrous metals and logistics sectors.
Presided over by Premier Wen Jiabao, Cabinet members agreed to promote company restructuring and will offer subsidized loans to support technical innovations within the nonferrous metals sector.
The export rebate rates of nonferrous products should be adjusted, said the Cabinet without elaborating.
The establishment of a national reserve system for the industry was also demanded.
The product structure of the nonferrous industry should be adjusted to meet the demand of power, transportation, construction, mechanics and light industries, the announcement said.
Cabinet members agreed to eliminate technically undeveloped producers and avoid the increase of excessive output capacity.
Nine key projects were also decided on as a way to boost the logistics sector, including supplying necessary equipment as well as promoting an industry standard and an information platform.
The plan would also build a special district for logistics development, and boost urban delivery, wholesale and rural logistics.
The logistics industry was a service sector that could give a major boost to production and consumption, as well as provide a great number of job opportunities, said the meeting.
Company merging and restructuring should be encouraged in order to nurture large and modern logistics companies which could compete in the international market.
The development of logistics for energy, mining, automobile, and medical industries and agricultural products should be especially encouraged.
The meeting underlined the development of technical innovations and decided that central and local governments should allocate 100billion yuan within two years to support the promotion and application of innovative products.
Beginning last month, China has unveiled stimulus packages for 10 industries. Previous support packages include the auto, steel, shipbuilding, textile, machinery-manufacturing, electronics and information industries, the light industry and petrochemical sectors.
Related Article: On American and Chinese Economic Stimulus Plan
According News from Xinhua, US President Barack Obama signed a mammoth stimulus package into law Tuesday and readied a $50 billion rescue plan for Wednesday announcement to help legions of homeowners who are facing foreclosure.
“Obama focused on the $787 billion stimulus plan, an ambitious package of federal spending and tax cuts designed to revive the economy and save millions of jobs. Most wage-earners will soon see the first paycheck evidence of tax breaks that will total $400 for individuals and $800 for couples.”
Comparing with the amount of $ 787, China plans $586 billion economic stimulus. As a developing country, China seems to make its every effort to reverse the country’s economic spiral. This largest stimulus plan in China’s history calls for new housing, roads, railways and airports, plus rebuilding areas devastated by the May 12 earthquake.
It is also said the new stimulus measures are aimed to help China’s countryside, where two-thirds of the nation’s 1.3 billion people live.
No wonder recently Manufacturers Pin Hopes On Rural Families.
Although the stimulus plans whether in America or in China are good news for ordinary people, I still concern the implementation of the plan in China.
Firstly, where will the money actually go? As we read, Obama signed the stimulus package into law on Tuesday and in the future the Congress will make special acts to allocate the money among different sectors. But in China, I don’t think there would be any legislative procedures for using the money. The fact is, at the end of last year, local governments officials swarmed around National Development and Reform Commission to apply for new projects. But how would the local government take advantage of the funds? Would more corrupts occur? No one knows. I just don’t want to witness any “Great Leap Forward of Infrastructure” and more destruction and reconstruction. We should deeply thought about the supervision of the use of the money.
Secondly, I totally support the policies of investment in rural areas. Chinese peasants have been suffering a lot. It is high time to improve their life. As a part of stimulus of consumption policy, the governments persuade them to buy TVs, washers and fridges and so on. But once these honest peasants spend out most of their savings, who will take the responsibility to take care of their lives? As the economy situation goes down, hardly the peasants workers could find the jobs in the cities, nor do they have the basic society security from the nation. At that time, they will just suffer more.
