February 11, 2009
Chinese yards told to freeze expansion
China's State Council today agreed a stimulus plan for shipbuilding, but said that shipyards should suspend construction of new docks and the expansion of slipways for three years to facilitate industrial restructuring.
The State Council adopted the stimulus plan for shipbuilding at an executive meeting chaired by Premier Wen Jiabao. According to Xinhua, the meeting agreed to increase credit support by an unspecified amount for ship buyers. It also decided to extend the existing financial support policies for oceangoing vessels until 2012. These policies include tax rebates on key imported components for domestically owned oceangoing ships.
The State Council also recommended investment in research and development of facilities to build high-technology ships and maritime engineering equipment and promote technical innovation.