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Old 12-26-2008, 08:10 AM   #1
AVANTI R5
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Default China To Launch Auto Industry Bailout In Jan

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China's economic planning body is expected to roll out an auto industry rejuvenating plan as early as in the coming January, the Shanghai Securities News reported today, citing informed sources. Zhang Ping, minister of the National Development and Reform Commission (NDRC), said during a press conference in Beijing Wednesday that Chinese government will quicken its steps to roll out a policy package to revive nine key industry sectors hurt by the global financial crisis, which include the heavily hit auto industry.
A government source familiar with the process told the newspaper that the bailout plan for the auto industry would be submitted to the State Council this week for approval and if all goes well, the plan might come into effect early in January.
The newspaper also cited sources with the Ministry of Industry and Information Technology (MIIT) as saying two key elements of the policies include funds to support fuel efficient vehicles and new-energy vehicles, particularly electric vehicles.
Head of MIIT said last weekend that China would resort to tariff and trade policies to facilitate export of labor-intensive and core technology-supported industries, and encourage domestic companies to conduct overseas mergers and acquisitions.
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