The Chinese government is considering a package of incentives to encourage the production and consumption of energy-saving goods, Vice-Premier Zeng Peiyan said in Beijing Tuesday while meeting with chairman Fred Poses of the American Standard Companies.

The package, Zeng said, would probably include preferential policies for companies engaged in energy conservation research. Moreover, energy-efficient products may be designated with a special label.

The Chinese economy has maintained fast growth over the past two decades. To keep it healthy, however, the central government must take measures to alleviate the energy shortage and develop a culture highlighting energy conservation and more efficient use ofnatural resources, Zeng said.

As American Standards' flagship products include bath and kitchen utilities and household air conditioners, both of which hit China's energy weak points -- water and power supplies -- Zengurged Poses to seize the opportunity and bring its advanced production technologies and energy-efficient products into China.

Acknowledging that resource scarcity is not unique to China, Poses agreed it was important for the Chinese government to set high standards in the very beginning.

"You have our commitment to bringing in our most advanced technology. We will work hard to make it possible for Chinese consumers to have our best products at low costs," said Poses.

(Xinhua News Agency March 23, 2005)