China preparing to bailout more industries

China is planning more help for its steel, textile, shipbuilding and other key industries, analysts said Thursday, a day after the government unveiled a stimulus package for its ailing auto sector.
Many of China's main economic drivers are struggling amid the global crisis and the government is hoping tax breaks and subsidies for them will just as crucially boost domestic demand and get consumers to spend, they said.
"It has become fashionable around the world for government to take over and help troubled industries, so China is doing nothing different," said Dong Tao, a Hong Kong-based economist for Credit Suisse.
"These measures tend to be wide in scope and are being implemented quickly with the obvious major target being aimed at boosting confidence.
"The government is saying it will not tolerate recession."
The automotive bailout package announced Wednesday included a cut in the sales tax to five percent from 10 percent for cars with engines smaller than 1.6 litres, from January 20 until the end of the year.
The package from the State Council, or cabinet, also included a 10 billion yuan (1.5 billion dollar) subsidy to help car makers upgrade technology and develop alternative-energy vehicles over the next three years.
"In order to adjust and revive the auto sector, we must implement a proactive consumption policy ... to stabilise and boost auto demand," the policy initiative on the government website said.