BEIJING, Dec. 7 -- The reported plan that China will invest 10 trillion yuan ($1.5 trillion) in seven strategic industries over the next five years is still under discussion, and the support for these industries will also include a package of policies, the China Business News (CBN) reported Monday, citing an unidentified person who participated in the drafting of the plan.
Reuters reported last week that the Chinese central government considered spending up to $1.5 trillion over five years in seven strategic industries, including alternative energy, biotechnology, information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars and energy-efficient and environmental technology industries.
The source of the CBN report confirmed such a plan, but he said the plan is still under discussion and the official version may come out before March next year, adding that there is still controversy as for whether to specify the investment scale in the plan.
The source said the central government investment will only account for 5 to 15 percent of the total investment. The rest may come from social channels such as local governments, State-owned enterprises and private enterprises.
The government's boost on these industries will not simply from capital investment, but include an array of policies, which will be in the form of tax breaks, consumption subsidies, government procurement, support for research and development and talent attraction, according to the source.
The source also warned of excessive investment in these sectors.