Industry is getting a shot in the arm from the central government in the form of 20 billion yuan (US$2.9 billion) allocated to help firms upgrade technology to boost domestic demand and encourage economic restructuring.
The government will distribute the money through rebates on loan interest payments for key industries including the steel, non-ferrous metals, petrochemical and textile sectors, the State Council said at a meeting presided over by Premier Wen Jiabao.
The move is expected to trigger an overall investment of 460 billion yuan.
The State Council said the support for technological upgrades is part of its 4 trillion yuan stimulus package introduced to mitigate the impact of the global economic crisis.
The government announced plans to revitalize 10 key sectors last year, encouraging technological advances and fostering more balanced development of the industries.
The State Council also said yesterday it will encourage alternative-energy vehicle research, support the development of integrated circuits, next-generation Internet and the country's own third-generation communication network based on the TD-SCDMA standard.
It will also promote the development of key components for solar and nuclear energy.
