Coinciding with Prime Minister Narendra Modi’s ‘Make in India’ pitch, the Chinese government has launched a ‘Made in China’ campaign with a host of tax concessions in an effort to retain its manufacturing prowess.
China will encourage high-tech imports, research and development (R&D) to upgrade ‘Made in China’, a decision by the Chinese central 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 based on 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 today.
The new decision coincides with the global launch of Narendra Modi’s ‘Make in India’ campaign today.
The Indian Embassy here, Consulates in Guangzhou, Shanghai and Hong Kong held special investment promotion events showcasing 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 last three decades propelled it to become 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.