China unveils support package to auto, steel industries (Jan 14)

    China's State Council unveiled a long-awaited support package for the auto and steel sectors Wednesday to boost the two "pillar industries".

    Under the plan, the government will lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent from Jan. 20 to Dec. 31 in a bid to stimulate sales.

    It will also allocate 5 billion yuan (730 million U.S. dollars) to provide one-off allowances to farmers to upgrade their three-wheeled vehicles and low-speed trucks to mini-trucks or purchase new mini-vans under 1.3 liters from March 1 to Dec. 31.

    For more reading: http://news.xinhuanet.com/english/2009-01/14/content_10657939.htm