China promises better financial support for manufacturing upgrade

BEIJING — Chinese authorities on Tuesday promised "multi-pronged financial support" for the manufacturing sector as the government looks to shift the country away from low-end manufacturing to more value-added production.

In a guideline jointly released by several regulators including the central bank and the Ministry of Industry and Information Technology, China pledged it would improve its support of the "Made in China 2025" strategy.

More financial support should be given to technology and manufacturing sector upgrades, the guideline said, underscoring the key fields and tasks in the Made in China 2025 blueprint.

China will allow banks and institutions to play differentiated roles in serving the manufacturing sector, and agencies will be set up to offer more professional services to the industry.

The regulators also pledged to foster a multi-layered capital market and speed up the listings of high-tech manufacturing firms.

Innovative bond and insurance products will cater to the financing needs of the advanced manufacturing industry, the guideline specified.

Although China's manufacturing sector is often labeled labor-intensive and outdated, the government is pursuing advanced technology and growth through innovation.

In 2015, China announced its Made in China 2025 plan would elevate the manufacturing sector up the value chain, and promote development in 10 key sectors such as medical devices and robotics.

China's industrial value added in the manufacturing sector expanded 6.8 percent year-on-year in 2016, with high-tech and equipment manufacturing posting about 10 percent year-on-year growth.