Four Measures Implemented to Boost Domestic Demand       

A November 12 State Council meeting chaired by Premier Wen Jiabao decides to boost demand and spur economic growth, with four measures to be implemented.
   Among them is the approval of the construction of the eastern section of the nation's second west-east gas pipeline, which is closely linked to the petrochemical industry. The eastern section starts at Zhongwei in Ningxia Hui Autonomous Region, running through 11 provinces and municipalities before ending in Guangzhou and Hong Kong. The project, which is expected to cost RMB93 billion, plays a key role in raising China's consumption of clean energy, easing gas supply shortage, and boosting economic and social development and benefiting people in areas that the pipeline would pass.
   Construction on the second west-east gas pipeline project was started in February 2008 (CCR2008 No. 7).It is scheduled for operation by 2009. Originally the pipeline is designed to end in Guangdong and Shanghai, with Hong Kong a future option. So the latest plan means the extension to Hong Kong has been brought forward.
   The State Council also approved construction of a new nuclear power plant in Guangdong province and the expansion of another in Zhejiang province, with combined cost of RMB95.5 billion. It also gave nod to spend RMB17.4 billion to build hydroelectric projects in Xinjiang, Guizhou and Jiangxi provinces and airports in Inner Mongolia's Bayannaoer and Jiuhuashan in Anhui province.
    China will also raise export rebate rates of the value-added tax on a number of products from December 1st, mainly in labor-intensive industries and electric equipment sector. The rebate increases apply for 3 770 items, or 27.9% of China's tariff lists. The central government also scraps export duties on some steel, chemical products and grains, while lowers and adjusts export duties on certain fertilizers. On some other items, it will hike or start imposing export duties.