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 the Notice No. 259 of 2012. To promote the purchase of energy saving home appliances, high energy efficient LCD/PDP TVs will be sudsidized by the Chinese government, from 1 June 2012 to 31 May 2013.
LCD panels must reach at least evergy saving level 1 and efficiency level 1.7 of the national standard(GB 24850), and the PDP panels must also reach energy saving level 1 and efficiency level 1.4, in order to be qualified for the subsidies.
Companies must registered in China and sell at least 500,000 units of energy saving TVs, in order to apply for the subsidies. Furthermore, companies must also promote an environmental friendly value chain.
Subsidies are from RMB 100 to RMB 400(around USD 16 to USD 64) per unit. Consumer can get the cash back from the companies. Companies should then report the results monthly and apply for the subsidies at the end of the year.
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.