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| Last updated at: (Beijing Time) Friday, November 16, 2001 |
Policy on Subsidies to State Companies to Be Revised |
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China is considering to change its policy of subsidizing state enterprises to comply with World Trade Organization (WTO) rules, a senior government official said Thursday.
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China is considering to change its policy of subsidizing state enterprises to comply with World Trade Organization (WTO) rules, a senior government official said Thursday.
Shi Dinghuan, secretary-general of the Ministry of Science and Technology, said that the subsidies, in the form of interest payment of bank loans for technology upgrades of state enterprises, would easily lead to unfair competition, which violates WTO rules.
He said that the government is now working on a more appropriate and fair way to subsidize state-owned enterprises at no cost of their competitive edge, Friday's China Daily reports.
Statistics show that China spent 19.5 billion yuan to subsidize state-owned enterprises in the past two years.
The subsidy was raised from treasury bonds. Textile, petrochemical, machine-building, non-ferrous metals and other industries have enjoyed the discounted loans.
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