Guangdong Governor Huang Huahua yesterday announced a four-year US$5.8 billion-plus rescue plan for the province’s ailing manufacturing sector, the South China Morning Post reported. The province recorded a 4.4 percentage point year-on-year decline in economic growth during the first 10 months of this year. The package will include nearly US$80 million to subsidize competent small and medium-sized enterprises and tax rebates for labor-intensive factories and their exports next year. The bulk of the US$5.8 billion will be used to accelerate industrial and labor relocation to remote areas of Guangdong, where production costs and land resources are cheaper. Of this sum, US$877 million will go toward the construction of industrial parks in eastern and western parts of the province, US$102 million will go toward training, and US$73 million will be handed out in cash awards to encourage factory owners to relocate.
Categories