China launched Made in China campaign to retain its manufacturing prowess

Sep 26, 2014 18:51 IST

China on 25 September 2014 launched Made in China campaign to counter India. The launch of the campaign coincided with the launch of Make In India campaign.

The decision to launch the campaign was taken by Chinese cabinet headed by Chinese Prime Minister Li Keqiang.
China by launching Made in China campaign seeks to retain its manufacturing prowess through giving host of tax concessions.

In order to arm China with advanced technology and equipment, encouraging more competitive products with high added value, the Chinese cabinet asked government organs to implement the new measures as soon as possible.

Main Elements of the Campaign

  • Under the campaign China will encourage high-tech imports, research and development (R&D) to upgrade Made in China.
  • Companies that bought new R&D equipment and facilities after January 1 or possess minor fixed assets will have taxes reduced based on value.
  • Imported high-tech equipment will also enjoy tax deductions. The industries with imported equipments which will enjoy tax deduction include aviation and bio-medicine production among others.
  • Made in China campaign aims to prompt technical improvement of companies, especially innovation of small and medium-sized enterprises (SMEs). These SMEs in the last three decades propelled China to become world's second largest economy and made it a powerhouse of the manufacturing industry.

Comment

Manufacturing sector of China had been a key driver of its economic growth and is globally competitive. With the launch of Made in China campaign a new round of innovation is believed to be spurred which will contribute to stabilising economic growth.

Further this will lighten burdens of enterprises in the real term and prompt the upgrade of outdated equipment.

Finally, it will help ease three aspects problems, viz., weak domestic demand and investment amid slowing economic growth, lagging equipment in manufacturing sector and low technical level of home grown companies.

Is this article important for exams ? Yes13 People Agreed
Read more Current Affairs on: Made in China campaign , Made In India campaign

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