China subsidy program to bring in 150 billion yuan in domestic spending

DigiTimes - Taiwan ^ | March 04, 2009 | Phoebe Chen, Taipei

[Oldeconomybuyer]

The China government's stimulus plan to subsidize sales of home appliances, handsets and computing products in rural areas is estimated to bring in 150 billion yuan (US$21.9 billion) in domestic spending, according to the region's Ministry of Commerce (MOC).

The subsidy program was launched in December 2008. Under the stimulus package, the China government plans to budget 20 billion yuan (US$2.93 billion) for subsidizing electronic appliance sales domestically during 2009. The subsidy program has recently been expanded to rural areas in 31 provinces, from the initial 12.

Companies including Dell, Haier, Hewlett-Packard (HP), Lenovo and Tsinghua TongFang have submitted tender offers to be allowed onto the government's list of subsidy-eligible brands. The successful applicants were expect to be announced on February 28, but the results have been delayed until March.

[Oldeconomybuyer]

Communist China's economic stimulus plan puts money directly into the economy by refunding up to 40% of the purchase price for big-ticket purchases. The 0bama administration should learn basic economics from the communists.