BEIJING (AFP) - Chinese farmers will be given a 13-percent discount on televisions, mobile phones and other electrical appliances under a new subsidy scheme to boost rural spending, state press reported Monday.
A pilot program will begin for three of the nations major agricultural provinces under which the government will offer the subsidy for TVs, mobile phones and fridges, the China Daily reported, citing the finance ministry.
Once the scheme is expanded, air conditioners and washing machines will also attract a subsidy, according to the ministry.
However the 13-percent figure was only given for the pilot programme in Shandong, Henan and Sichuan provinces, which will begin around the start of 2008.
Chinas economic boom has brought unprecedented wealth to the nations cities, but many of the 800 million people still living in the countryside have missed out on much of the development.
The new scheme reportedly aims to partly address this issue, as well as get more people to buy local products rather than have the bulk of electrical appliances exported overseas.
"The move is meant to give farmers more benefits and divert more government expenditure to the consumer sector from fixed asset investment and the export industry," finance ministry official Zeng Xiaoan was quoted as saying.
"If one percent of the rural families buy TV sets priced at 1,000 yuan each, it means 2.5 billion yuan (in sales)."
Televisions, fridges, washing machines, air conditioners and mobile phones accounted for 28 percent of Chinas trade surplus last year, the China Daily said.
While the Chinese government has identified boosting domestic consumer spending as a top priority, US President George W. Bush has been among foreign critics to have repeatedly called for China to do more on this issue.
