Economy

Markets

Industries

Insights

Reports

Events

China cancels motorcycle bidding in rural subsidy scheme

By Tu Lei (chinadaily.com.cn)
Updated: 2009-03-06 16:40

The State Council, or the Cabinet, has cancelled the bidding for motorcycles in a rural subsidy program, according to an announcement jointly released by the ministries of commerce and finance on Friday.

The decision will invalidate the preliminary bidding held on Feb 19, said Gao Yong, board chairman of China motor producer Chongqing Loncin Industrial (Group) Co Ltd.

"Now all the motor producers will likely benefit from the subsidies instead of the bidding winners," said Gao, quoted by Caijing Magazine.

The government has been introducing bidding programs for the rural subsidy scheme for many products such as computers. Under the subsidy program, farmers get subsidies when buying a range of products including TV sets, computers and motorcycles.

The government has been betting on the subsidy program to boost rural spending power to spur the slowing economy.

China's motor industry employs about 1.5 million people.