| On Thursday, the stimulus plan was reviewed and approved at a State Council executive meeting chaired by Premier Wen Jiabao. The meeting decided that light industry is very important in enriching people's physical and cultural lives. It also helps create 35 million jobs and is a pillar of the country's exports. Measures to stimulate light industry include expanding urban and rural consumption and promoting technology upgrading especially in the sectors of paper-making, home appliances and plastics. The measures also include strengthening food security and brand marketing. The meeting decided that export tax rebate will be further increased on certain light industry products. SMEs in the industry will receive more fiscal and credit support. Subsidies to home appliance makers selling in rural areas will be increased. Regarding the petrochemical industry, the meeting said it is capital and technology intensive and relates to a large number of other economic sectors. It is thus significant in keeping overall economic growth. So first of all, the petrochemical industry has to be kept stable so that related sectors can enjoy stable growth. Supervision on energy imports needs to be intensified and a pricing scheme is to be set up. Secondly, production of pesticide and other farming materials will be safeguarded to ensure farming produce. Thirdly, large oil refining projects will be boosted. Fourthly, backward productivity will be abolished, especially in the coke and carbide sectors. Moreover, credit support to petrochemical firms will be expanded and corporate governance of these companies needs to be improved. |