Tax breaks likely for manufacturers

Market boost: An employee at a truck production line in Xian. Beijing is under pressure to ramp up monetary and fiscal stimulus, although with a relatively modest growth target of around 5% this year. — AFP

BEIJING: China is considering new tax incentives for high-end manufacturing companies, according to a source, as it seeks to bolster the economy and encourage more innovation in technology to counter US competition.

The tax policy being considered could save advanced manufacturers hundreds of billions of yuan. The plan is still subject to approval and could undergo changes, the source said.