According to a recently released report, China's Ministry of Finance will first implement the policy of preferential duties on imports of parts and components in the textile machinery sector.

The rebate on import tariffs and VAT will be implemented in 16 main technical equipment fields and will be considered as national investment made to promote technical innovation.

China had, from January 1, 2007, implemented refund on import duties for some key components imported by domestic companies to manufacture high-speed air-jet looms and automatic winders. As part of the policy, the country also abolished import tax immunity on related whole machines.

This policy will benefit the country's equipment manufacturing industry which is presently facing roadblocks in its inability to innovate, its unreliable industrial structure and weak global competitiveness. The ministry said the import duty adjustment has been made so that textile machinery enterprises have an opportunity to experience fair competition.