The People's Bank of China has announced plans to create a 500 billion yuan ($70 billion) refinancing program to support the country's science and technology industry.
The program will provide loans at an interest rate of 1.75% to small and medium-sized technology companies through 21 banks, the People's Bank of China said in a statement on Sunday.
The one-year loan can be extended twice, each time for up to one year, the statement added.
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Chinese policymakers are trying to boost liquidity and boost confidence in the world's second-largest economy amid headwinds from a real estate crisis and friction with major trading partners.
Analysts expect the technology industry to be China's next growth driver. Downturn in the real estate sectorwhich once accounted for about 25% of the country's GDP.
At the same time, the Chinese government, led by Xi Jinping, is also looking to combat the technology war waged by the United States and Europe.
Washington and Brussels are stepping up measures to crack down on the flow of advanced technology to Beijing. It has also taken steps to increase tariffs on Chinese-made goods deemed to have benefited from China's generous state subsidies.
For example, both the United States and Europe have taken steps to curb the flow of advanced chips and chip-making tools to China, citing concerns about their use by the Chinese military.
The two companies have also begun investigating Chinese EV manufacturers. Although the United States has expressed concern, Data flows to BeijingEurope said Chinese automakers may have an 'unfair' advantage Higher than local manufacturers due to the support of Chinese government subsidies.
US Treasury Secretary Janet Yellen is currently visiting China. raise concerns about the country's “overproduction” Clean energy technologies such as EVs and solar panels are becoming more widespread, backed by huge subsidies from the Chinese government.
But far from curbing investment in manufacturing, China is doubling down on President Xi's new philosophy of unleashing “new productive power.”
The country's policymakers are ramping up investment in cutting-edge technologies such as semiconductors, electric vehicles, quantum computing, commercial spaceflight and life sciences, areas where many Western companies have an advantage. have.
- Additional editing by Vishakha Saxena, Reuters
