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China to provide subsidies for tech exports

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CIOL Bureau
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SHANGHAI, CHINA: China will provide subsidies for firms exporting technology services and software, the country's Ministry of Finance said on Thursday.

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In a statement posted on its website, the ministry said export deals exceeding $100,000 which received letters of foreign exchange payment from banks last year are eligible to apply for the subsidy.

The subsidy rate will be up to the one-year loan rate announced most recently by China's central bank. A company can receive up to 5 million yuan, the statement said.

In its annual report to the U.S. Congress, the U.S. Trade Representative's office said in March that China retains a raft of non-tariff barriers, including tax rebates and quotas, that discriminate against foreign manufactured and farm goods.

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This month, Google Inc said it was working with U.S. and European officials to build a case that would argue Internet censorship acts as a trade barrier.

China imposes tight control over the Internet and information flow and says the control is necessary to maintain public order. Foreign and domestic companies are required to conform to strict censorship laws to operate in China.

The United States is studying whether it can legally challenge Chinese Internet restrictions that hurt Google and other U.S. companies operating in China, but the top U.S. trade official said in March that direct talks with Beijing might yield faster results.

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