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Beijing plans stimulus for target sectors

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Cary Huang

Beijing has pledged to support seven new strategic industries, including renewable energy, and kick-start 20 major projects as it moves to counter a sharp slowdown in economic growth.

'It is a strategically significant task to develop strategic emerging industries, particularly when the economy is facing increasing downward pressure,' the government said in a statement after a State Council executive meeting presided over by Premier Wen Jiabao.

Cabinet members discussed and approved a policy document called the 'Development Framework for Strategic Emerging Industries During 12th Five-Year Period', according to the statement yesterday.

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Instead of introducing multi-trillion yuan of stimulus plans, the government said targeted industry support would help maintain stable and fast economic development over the long term amid slowdown in the world's second-largest economy.

The statement did not provide specific new policies to boost the industries, which were already identified as key strategic priorities under 12th five-year plan from 2011 to 2015.

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But the statement suggests that Beijing is trying to use short-term stimulus efforts to serve its long-term development objectives, including efforts to restructure its economy and its growth model, which are seen as being over-reliant on infrastructure investment and the export of low-end manufacturing products.

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