China will invest five billion yuan (US$667 million) to introduce advanced manufacturing technology and equipment in the next few years to improve its self-reliance and boost its innovative edge, a senior government official said yesterday in Shanghai.

The investment will focus on manufacturing equipment in the textile, machinery and home appliance sectors, said Wei Jianguo, vice commerce minister.

"It's to improve our manufacturing industry's competitiveness that is largely defined by the level of the manufacturing equipment," he said at the China International Industry Expo, which opened in Shanghai yesterday.

In his speech, Wei said that although China is the world's third biggest maker of machine tool by volume after Japan and Germany, the country is still weak in high-end products like computer numerical control tool.

The central government regards the equipment manufacturing industry as a strategic one and is eager to accelerate its upgrading.

China plans to develop a group of competitive large-scale manufacturers who own intellectual property rights over their products and technologies by 2010, according to a circular by the State Council, China's cabinet, last year. Support will be offered in terms of financing, for example.

Currently, more than 70 percent of the high-tech output in the nation's manufacturing industry are made by joint ventures and foreign companies in China.

Officials stressed yesterday that the country will enhance IPR protection to encourage technical innovation and will "execute tougher punishment on IPR infringement."

In the automobile industry, Wei said China is drawing up rules governing the export of cars by cutting the number of small exporters and will develop large-scale exporters with annual overseas sales of 500,000 to one million units.

There are now fewer than 400 auto exporters from the peak of 1,267, which included small firms that export less than five units a year.

(Shanghai Daily November 7, 2007)