'Made In China' Campaign Launched With 'Make In India'

The cabinet asked government organs to implement the new measures as soon as possible to arm "Made in China" with advanced technology and equipment, encouraging more competitive products with high added value, the report said.

China's manufacturing sector, a key driver of its economic growth, is regarded highly competitive in the global market.

Analysts believe the measures will not only start a new round of innovation but also spur fixed asset investment, and in the bigger picture contribute to stabilising economic growth.

Zhu Jianfang, chief economist of CITIC Securities, said the measures will lighten burdens of enterprises in the real term and prompt the upgrade of outdated equipment.

Combined tax deduction of A-share listed companies is expected to reach 233.3 billion yuan (USD 38 billion) in the first year after the policy takes effect, equal to 7.8 per cent of their total cash flow in 2013, according to the calculation of the Shanghai Stock Exchange (SSE).

Zhu said three aspects of problems will be eased, citing weak domestic demand and investment amid slowing economic growth, lagging equipment in manufacturing sector and low technical level of home grown companies.

Zeng Gang, analyst from the SSE, expects the move to help China's manufacturers greatly improve their global competitiveness and produce more self-invented merchandises.

"Under the guidance of the government, the enterprises will actively invest in fixed assets, upgrade their technologies and equipment, which will be a boon to current economic growth and nurture growth potentials in the long run," Zhu said.