22 Jul 2009 13:25

Chinese govt's rural electronics scheme generates sales of $2.37 bln in H1

Shanghai. July 22. INTERFAX-CHINA - Household appliance manufacturers generated revenues totaling RMB 16.23 billion ($2.37 billion) under the Chinese government's scheme to provide subsidized electronic goods to rural residents in the first half of 2009, the Ministry of Commerce (MOFCOM) announced on July 22.

The volume of electronic goods sold under the scheme reached 9.61 million units from January to June.

Household appliance manufacturers generated the most revenue from southwestern China's Sichuan Province, followed by eastern China's Shandong Province and central China's Henan Province.

Rural residents in Sichuan purchased RMB 2.28 billion ($333.51 million) worth of electronic goods under the scheme in the first half, accounting for 14.03 percent of the total figure. Sales in Shandong and Henan reached RMB 2.08 billion ($304.26 million) and RMB 2.03 billion ($296.94 million) respectively in the same period.

"These three provinces were among the first to participate in the government-sponsored scheme, which has allowed for established distribution networks in these areas," Liu Buchen, an independent industry observer, said.

China launched the rural electronics scheme to boost sales and consumption of electronic goods in a few key areas at the end of 2007. According to the official policy that was released on Oct. 16, 2008, MOFCOM is in charge of launching tenders as well as selecting and subsidizing household appliance manufacturers to supply electronic goods at a discounted rate to rural residents.