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Tech barriers 'must be removed' - official

By Fu Jing (China Daily)
Updated: 2008-11-15 08:45

Developed economies can benefit from China's 4-trillion-yuan ($586 billion) stimulus plan if they start to remove barriers to high-tech exports to China, Vice-minister of Finance Wang Jun said on Friday.

In addition, developing countries can also benefit as China's heavy infrastructure spending will create large opportunities for exporters of resources.

"I suggest that developed economies ease their technological barriers, while Chinese enterprises are encouraged to upgrade their technology," Wang told a press conference.

He said the government would scrap value-added tax for companies' equipment purchases to save them an estimated 120 billion yuan ($17.6 billion) a year. This, together with other measures to ease the burden on enterprises, could save them a total of 300 billion yuan each year, said Wang.

This cost reduction could go a long way toward helping firms upgrade their technological capabilities, he added.

Peng Xiancheng, president of Sichuan-based chemical group Decision, said the new policies offered incentives for his company to import more "green technologies" from developed countries.

Guan Tao, a senior official with the State Administration of Foreign Exchange, said the huge trade deficit between China and developed economies was largely a result of "their high-tech export controls".

"They should adjust to the recession and create a win-win situation by relaxing controls on technology exports to China," Guan told China Daily.