China to boost local industry

To boost the domestic equipment-making industry and potentially create a US$10 billion market for home manufacturers, China plans to limit the imports of large-scale petrochemical equipment used in oil refineries and other facilities. The nation’s industry planner, the National Development and Reform Commission, aims to have 75% of the country’s petrochemical equipment locally made by 2010, according to a draft proposal. Currently, locally produced equipment in domestic oil refineries exceeds 90%. The proposal asks developers to submit a procurement list when starting new petrochemical projects. It plans to bar imports of equipment that can be domestically made and marketed, and limits imports of equipment, which can be locally produced but is not yet commercialized by levying an import tax. (July 28, 2007)