Posted on 12 Jan 2009
Assistance plans for auto and steel makers are likely to feature tax cuts and incentives to promote industrial consolidation and eliminate outdated factories, the source said.
"The National Development and Reform Commission together with other departments came to a basic agreement about details for the auto and steel plans last week, and these will be discussed at a State Council meeting this Wednesday," the source said. "If approved, they will be announced and implemented very soon."
Proposals for the auto industry include reducing or even abolishing taxes on car purchases from the current 10 percent level and incentives for the development of cleaner cars, according to earlier state media reports.
The industrial assistance plans are separate from the 4 trillion yuan ($585 billion) of stimulus spending that the government has slated for the next two years.
In comments reported on Sunday, Chinese Premier Wen Jiabao said the stimulus package, the industrial support measures and sped-up investment in science and technology were the three strands of the government's economic rescue package.
Chinese economic growth probably slowed to single digits last year after five straight years of double-digit expansion, and many economist believe it is on track for an even sharper slowdown this year as exports plummet and domestic investment weakens.
