China: Restructuring of equipment manufacturing industry
Description
On 12 May 2009, the Ministry of Information Industry (MII) of the People's Republic of China issued a Planning Release entitled Restructuring and Revitalization of Planning for the Equipment Manufacturing Industry. In the Release, the Ministry recognizes the importance of the equipment manufacturing industry for the absorption of labour and as an impetus for the adoption of capital-intensive technology in various sectors. It also notes the role of the CPC Central Committee and State Council in the expansion of capital growth and domestic demand as means of stabilizing this "important industrial pillar of the national economy" during the global financial crisis.
The Release establishes a number of planning objectives for the state with respect to the equipment manufacturing industry, including the consolidation of Chinese manufacturers' position within the domestic market and the maintenance of their competitive advantage in the international marketplace. It also encourages state bodies to ensure that the production of domestic industries meets the requirements and standards of the national market, particularly with respect to the attainment of other goals related to power generation and the production of capital equipment.
Ten key projects are identified as means of spurring development in the equipment manufacturing sector. The majority of these ten projects are connected to broad infrastructure goals such as the expansion of clean power generation technology and the construction of high-speed railways between major urban centres, as well as IT development and the improvement of environmental protection. Furthermore, the Release specifies nine key industries on which government efforts should be focused: iron and steel; automobiles; petrochemicals; ship-building; light manufacturing; textiles; non-ferrous metals; electronic information technology; and national defense. These industries are believed to be of great importance in the completion of crucial infrastructure projects and the development of the domestic marketplace during the financial crisis.
Among the policy suggestions made in the Release, the Ministry recommends that measures be drafted to encourage the use of Chinese-made equipment, including through insurance mechanisms that would favour such technologies and equipment. It also calls for an increase in the export-tax rebates granted to producers of high-technology and high-value added equipment and for the abolition of import tariffs on key components of these technologies and on raw materials.
Planning Releases issued by the MII do not have legal force. Rather, they act as guiding documents for other ministries and state bodies. They are often used as the basis for changes to regulations and legislation by ministries and organizations responsible for the identified sectors of the economy.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Yes |
| Is there any evidence that alternatives to the proposed measure were considered? | No |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | No |
| Was such evidence identified? | No |
| Is such evidence publicly available? | No |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | No |
| Did the government state its intention to review the measure within one year of implementation? | No |
Date Discovered: 07/08/2009
Implemented: No
Date of inception: 12 May 2009
GTA Evaluation: Amber
Source:
Ministry of Information Industry of the People's Republic of China, Restructuring and Revitalization of Planning for the Equipment Manufacturing Industry, 12 May 2009, http://www.miit.gov.cn/n11293472/n11293832/n11294072/n11302450/12392015....
Government Response:
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