China has launched a ''Made In China'' campaign, following Indian Prime Minister Narendra Modi's ''Make in India'' campaign, offering a host of tax concessions to investors, as it sought to retain its position as the world's top manufacturer.
Under the new campaign, China will use tax breaks to encourage enterprises to upgrade their equipment and increase R&D efforts to improve the manufacturing industry.
"China will use tax breaks to encourage enterprises to upgrade their equipment and increase research and development (R&D) efforts to improve the manufacturing industry," a Xinhua report said.
Under the scheme, companies that bought new R&D equipment and facilities after 1 January 2014 or possess minor fixed assets will enjoy reduced taxes based on value, the State Council, China's cabinet, presided by Premier Li Keqiang, announced after a meeting on Wednesday.
Tax deductions will also be offered on imported high-tech equipment used in aviation, bio-medicine production, manufacturing of railway and ships, electronics production, including computer and telecommunications, instrument production and those used in making IT products and software, the council stated.
China's move, which aims at pre-empting India's move to increase its share of manufacturing in local and overseas markets, looks at technology injection into companies, especially innovation in small and medium-sized enterprises, to bolster manufacturing quality.
The council also directed government organs to implement the new measures as soon as possible to arm "Made in China" campaign with advanced technology and equipment, encouraging more competitive products with high added value.
The measures are intended to spawn a new round of innovation and also to spur fixed asset investment, thereby stabilising economic growth.
Chinese vice premier Wang Yang, meanwhile, met with Japanese business leaders on Wednesday to discuss ways of increasing friendly bilateral cooperation.
The 200-member delegation of the Japan-China Association on Economy and Trade (JCAET), led by JCAET president Fujio Cho and top advisor Sadayuki Sakakibara, had representatives from 89 Japanese companies.
It is Sakakibara's first visit to China since he became head of Keidanren, also known as the Japan Business Federation, in June.
The delegation is also the biggest ever, according to Sakakibara
China has also offered to further open its express delivery market to foreign enterprises to help develop a modern tertiary sector, authorities said.
The cabinet meeting on Wednesday also decided to fully open the country's domestic package delivery business to qualified foreign companies.
China will streamline licence approval procedures and encourage mergers and acquisitions, even those launched with foreign capital, within the necessary review system.
China's international delivery business has become basically open to overseas capital, while domestic markets in major cities have gradually become available to foreign players.
The authorities believe that allowing in foreign competitors, a move promised when China entered the World Trade Organization, will push homegrown delivery businesses to up their game.
The country is relying on the sector to power the development of the whole tertiary industry, driving demand and propping up employment amid the economic slowdown.
China's delivery sector is booming with annual growth surpassing 50 per cent in recent years. About 8.16 billion deliveries were made in the first eight months of this year and combined revenue amounted to 123.04 billion yuan ($20 billion).