ANNOUNCEMENT 25 May 2012In May 2012, the government of China announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 25 May 2012, the Ministry of Finance issued Notice No. 260 of 2012, aiming to support the purchase of energy efficient and energy saving air conditioners with consumption subsidies.
To apply for the state promotion and subsidies, AC with constant speed should reach level 2 of the national energy saving standard (GB12021.3-2010), and AC with variable speed should reach level 2 of the national efficiency standard (GB21455-2008). Products should also get certified by third examination parties.
Qualified companies must be registered in China, and must sell at least 100,000 units of energy saving AC a year. Companies should also be devoted to promote a local sustainable value chain.
During the promotion period (1 June 2012 to 31 May 2013), consumers should apply for the subsidies directly from the companies. Companies should then report the monthly results to the authority concerns and apply for the state subsidies at the end of the year. Subsidies are from RMB 180 to RMB 400(around USD 29 to USD 65) per air conditioner, depending on the energy saving level.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.