appConfigEntityId

bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

hooksArticlePageAdvertisementConfigArticle

liveArticle

appConfig

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

sectionsV2

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

json

Firms ordered to shelve new dockyard plans
Beijing has approved measures to support the country's shipbuilding industry and is considering a proposal to aid  light industry in an effort to keep companies, hard hit by the slowing economy, afloat.
However, the proposal for  light industry triggered concerns of protectionism because the 'buy local' provisions in the initial document remained intact in the final version, observers said.
The support scheme for the shipping industry, the fifth set of industry-specific measures rolled out by the central government in the past four weeks, ordered  shipbuilding companies to shelve their plans to set up new dockyards  in the next three years, Xinhua reported.
The authorities also promised to help shipping companies secure the delivery of existing deals for new ships by asking state-controlled banks to increase access to credit for domestic  buyers.
Dwindling international trade as a result of the global economic crisis has begun to bite hard among mainland shipbuilders, which have  a collective annual capacity of about 60 million tonnes, according to official statistics.
Apparently aimed at heading off  collapse caused by overcapacity, the State Council guidelines encourage mergers and acquisitions in the  industry and promise financial support from  banks.
The government also vowed to foster the transformation of some existing shipbuilding operations into after-sales service centres.
Separately, the scheme for  light industry, which is still pending  State Council approval, calls for an increase in import tariffs on 'high-end consumer goods' produced overseas.
It also urges the Beijing authorities to favour domestic manufacturers in government procurement campaigns, the Shanghai Securities News reported.
This emerged two days after Jiang Zengwei, a vice-minister of commerce, promised to avoid protectionist measures in the  national stimulus package.
Beijing would 'treat domestic and foreign goods equally', Mr Jiang said.
The United States government sparked controversy with a provision in its proposed US$819 billion stimulus package that American steel and iron be used for infrastructure projects funded by the  scheme, unless the cost is 'prohibitively expensive'.
'Localisation-favouring policies have long  existed in  mainland government thinking,' said a Hong Kong-based economist with a foreign-owned investment bank.
'But this kind of explicit wording, if not withdrawn in the final version of the plan, could sow the seeds of protectionism, especially under the current climate.'
The light industry bailout, which covers 19 sectors from food to home appliance manufacturing, was drafted by a team of experts assembled by the National Development and Reform Commission,  sources said.
In contrast, most of the other support schemes were compiled by respective industry associations.
Apart from the latest one for shipbuilding, the State Council has so far given  approval for bailout plans for the vehicle, steel, textile and machinery manufacturing sectors.
Zhao Jinhou, an analyst with  Shenyin Wanguo Securities,  said the main part of the proposed light industry support scheme would be the reduction of consumption taxes to  raise domestic consumer demand for household goods.



Beijing to bail out shipping industry