China's NDRC to subsidize loans for raw material imports

Sep. 1, 2009 (China Knowledge) - China will provide loan interest subsidies to encourage the importation of raw materials such as concentrates and ores of metals such as copper, nickel, lead, zinc, uranium and chromium, as well as clean energy equipment such as solar and nuclear power components, the National Development and Reform Commission said.

The NDRC said that the loan subsidies would support advanced technology, equipment and development for key industries as well as resource-based products, but did not provide any details about the amount of the subsidies to be provided.

The central government, which wants to eliminate outdated capacity, will only extend subsidies to smelters that meet national standards, and may limit the number of enterprises that are eligible to claim a loan subsidy.

The subsidies will help smelters increase their profits and will protect the country's natural resources, said an industry insider.

The import loan subsidies are the newest measure the government has implemented to support industrial development. Other measures include relaxed credit, a stimulus package of RMB 4 trillion, adjustments to the tax rates on imports and exports, and a commodity reserve campaign by the central and local governments.