Support for IC industry to keep on

The State Development and Reform Commission pledged on September 21 to prop up the further development of the country's integrated circuit industry.

In addition to the policy of rebate-upon-collection of taxes on IC products, the document numbered (2000)18, along with its complimentary regulations, will remain valid.

In line with the WTO rules and international common practices and taking into the real situation of China, the country will continue its support to the IC industry to encourage research and development and foster talents.

In the meantime, export taxes on IC products will be rebated in full amount.

Some WTO members including US put up complaints against the tax rebates policy to China since this year. An understanding has finally been reached between China and these WTO members after consultations.

China agreed to stop refunding the taxes involving the portion above 6 percent of the total duties to be levied on imports of home-designed and overseas manufactured IC products. Refunding of value-added taxes on domestically made IC products will phase out on April 1, 2005.

By People's Daily Online