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China Helps Farmers Purchase Electrical Appliances
By Paul Midler | December 31, 2007
China’s central government announced that it will be helping rural folk by subsidizing the purchase price of electrical appliances. The move was said to be a boost to domestic consumption, but I can’t help think that this is about making the poor classes feel better about missing out on China’s great economic boom.
“Farmers will receive 13 percent rebates in prices for color television sets, refrigerators and mobile phones, the Ministry of Finance said… air conditioners and washing machines would join the subsidy list in the future.”
If Louis XIV were Chinese and alive today, his wife might have offered: “let them eat refrigerated cake”.
Topics: China |
January 1st, 2008 at 11:29 pm
’subsidising’ by reducing VAT from 17% to 4%. Nice move. Boosts domestic consumption in markets that are already cut throat and with negligible margin while still getting a little slice of that VAT.
TV sets to help spread the word about the glorious rise of China via CCTV.
Mobile phones to help spread the word of discontent in the rural areas and to organise demonstrations.
Refrigerators to… I’d guess that there’s not that much choice of chilled goods in the country side - but it’s always nice to have a fridge.
Are they going to subsidise the already overstretched power supply? How about the mobile pone bills - subsidised?