China to stop motorbike subsidy in rural areas

China will stop subsidizing purchases of motorcycles in rural areas when the subsidy program ends on January 31. The decision was jointly made by the Ministry of Finance and six other related departments, according to the ministry.

It has asked local authorities to notify the public of the policy change.

China rolled out the program and offered a 13-percent subsidy to motorbike purchases in 2009 in a bid to lift rural residents’ living standards. It was also implemented to spur domestic consumption amid a fall in exports during the global downturn.

In January 2010, the country extended the subsidy for motorcycle purchases to Jan 31, 2013.

Via: ChinaDaily.