Innovation gets US$3b boost

THE Chinese government will spend 20 billion yuan (US$2.93 billion) this year on technological innovation in a range of sectors.

The money will mainly be used in the form of subsidized loans, and could boost 460 billion yuan in investment in total, the government said in a statement after a State Council meeting, chaired by Premier Wen Jiabao, approved the plan on Wednesday.

The sectors that will be covered under the plan include petrochemical, textile and food, the manufacturing of wind turbines and nuclear reactor parts, logistics, steel and new energy.

The spending program also called for technological upgrade in the development of integrated circuits, next-generation Internet and the home-grown TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) 3G mobile phone technology.

The government is encouraging companies in the sectors to upgrade technologies to create better product portfolio, and more sustainable industry development.

The spending on innovation is part of the government's rejuvenation plans for 10 key industries.