China expands rural home appliance subsidies

According to the General Office of the State Council, China will expand subsidies for farmers' purchase of home appliances nationwide from February to boost consumption.

In a statement on improving the circulation network to boost consumption, the Office says farmers who buy motorcycles, computers, water heaters and air conditioners will get subsidies.

At present, subsidies only apply to rural residents in 12 provinces, or less than half of the total.

China will grant a 13 percent subsidy to farmers who buy color TVs, refrigerators, mobile phones, washing machines and freezers. A pilot program began in December 2007.

The Office urged local governments to clamp down on sales of substandard appliances to farmers and ensure good quality and post-sales service to stimulate rural consumption, and proposed expanding the sales network.

China is pinning hopes on domestic demand as the global economic crisis has hit exports.
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China issues decree ending three tax fee regulations

China's State Council, or cabinet, issued a decree on Wednesday abolishing three tax and fee regulations.

From January 1st 2009, foreign-invested companies, wholly foreign-funded companies and organizations and foreign nationals shall pay real estate tax under the interim regulations of the People's Republic of China on real estate tax.

The previous three regulations abolished as of January 1st, 2009, include:

The provisional regulation governing urban real estate tax, the Yangtze River maintenance fee collection regulation as well as the inland river maintenance fee collection regulation.
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China to almost double railway investment in 2009

Amid a surge in planned infrastructure projects next year aimed at boosting domestic demand, China plans to almost double its investment in railways to about 600 billion yuan or about 88 billion U.S. dollars.

The money is part of the 4-trillion-yuan stimulus package announced by the government earlier this year.

Minister of Railways Liu Zhijun predicted railway travel would be much easier by 2012. The bottle-neck restraints both in passenger and cargo transportation will be removed.

The ministry also plans to add more rails to busy routes and to provide separate rails for passenger and cargo transport. This should also help boost transport capacity and efficiency by 2012.

Liu envisioned inter-city rail systems would be put into place by 2012 in populous regions, such as the Shanghai-led Yangtze River Delta, Guangzhou-centered Pearl River Delta and Beijing-led Bohai areas.