China to help small firms to eliminate overcapacity

BEIJING Wed May 7, 2014 11:48am EDT

BEIJING May 7 (Reuters) - China will give subsidies for small companies that have to shut some operations due to the government's campaign to tackle overcapacity and pollution, the Ministry of Finance said.

The subsidies in 2014, part of a continuing program, will focus on small firms in sectors including steel, nonferrous metals, building materials, machinery, chemicals and textiles, according to a circular posted on the ministry website.

In recent years, the government has been helping smaller firms in selected sectors to shut down outdated equipment, part of its drive to eliminated overcapacity and tackle pollution.

Small firms that have closed their facilities before March 31 will be eligible for applying for the central government subsidies, the circular said without giving further details.

(Reporting by Kevin Yao; Editing by Tom Heneghan)