Foreign-funded enterprises in the fields of transportation,
residential development and offshore oil exploitation will enjoy
tax benefits when they buy Chinese-made machinery and
equipment.
The State Administration of Taxation and the National
Development and Reform Commission (NDRC) jointly made the
announcement in a newly-publicized regulation.
The regulation came into effect on July 1, 2006.
The Chinese government has laid out plans for establishing a
group of competitive machine manufacturing firms by 2010 in order
to reinvigorate its machine industry.
In a government document published in June, China lists 16
categories of key equipment and machinery as priorities.
The categories include large machinery used in clean and
efficient power-generation, large and complete sets of
petrochemical equipment, major coal mining machinery, large
shipping vessels, high-speed trains, large precision machine tools,
and key equipment used in making integrated circuitry.
The government said in the document that it would launch a
package of support measures for the independent development of
major equipment that would gradually make the country
self-sufficient in machine design, manufacturing and operation.
(Xinhua News Agency August 4, 2006)