China renews tax exemption to encourage technology imports

BEIJING - China's Ministry of Finance (MOF) has extended a duty-free policy for technology imports to facilitate a national manufacturing improvement strategy.

An action plan has been released to continue the exemption of tariffs and value-added taxes for purchases of major technological equipment from abroad this year, the MOF said Wednesday in an online statement.

Around 2.3 billion yuan ($350 million) is expected to be saved by Chinese importers, according to the statement.

Imports of core parts and materials of major technological equipment started to enjoy the favorable policy eight years ago, with taxes worth 32 billion yuan having been exempted as far.

The move came as part of the country's effort to develop into a manufacturing powerhouse with more and better high-tech products as the advantage of cheap labor in Chinese factories fades away. The "Made in China 2025" strategy, equivalent to Germany's Industry 4.0, was announced in 2015 to fulfill the aim.