In order to assist the slumping demand in auto and steel industries, Chinese government will plan to feature tax cuts and incentives to promote industrial consolidation and eliminate outdated factories.
The details will be discussed at a State Council meeting this Wednesday. Proposals for the auto industry will be to reduce or even to abolish taxes on car purchases from the current 10 percent level.
Last year Chinese economic growth slowed to single digits after five straight years of double-digit expansion. On the other hand, lots of economist believed there will be an even sharper slowdown in 2009 due to weaken demand and global financial crisis. Source: Yieh.com