Economy

China moves to increase mechanization

(Xinhua)
Updated: 2010-07-09 20:08

BEIJING - The State Council, or the Cabinet, on Friday outlined tasks and goals for "sound and fast" development of the country's farm mechanization.

In a statement to ministries and local governments, the State Council said China was now at a critical transition stage in its development from traditional labor-intensive farm production to that which is more reliant on machinery.

Related readings:  Mainland farmers cultivate skills in Taiwan  Investment in agriculture to boost exports  China sets up system to recall defective agricultural machines  China raises machinery subsidies to help farmers

Farm mechanization and increasing the use of agricultural machinery was essential for boosting agricultural production and increasing domestic consumption in rural areas, said the statement.

About 49.13 percent of China's farmland was plowed, planted and harvested by machines by the end of 2009, nearly 7 percentage points higher than in 2007, according to figures from the Chinese Society for Agricultural Machinery.

Domestic agricultural machinery manufacturers are encouraged to set up research and development centers with foreign companies through joint ventures to reduce China's dependence on imports of advanced technologies, according to the statement.

According to the statement, the Chinese central government would continue to subsidize agricultural machinery purchases and provide better access to finance for farmers.

Tractor-plowing and machinery irrigation companies will be exempted from operation taxes and agricultural machinery maintenance enterprises will get income tax breaks, said the statement.

The mechanization of China's agricultural production has reduced the annual need for around 10 million farm labors, according an estimate by the Beijing-based China Agricultural University.

China's rural population is expected to shrink from the current 900 million to 400 million over the next 30 years as farmers migrate to cities, according to a forecast by the State Council Development Research Center.