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China Encourages Spending on Breakfasts, Cars as Economy Slows

By Zhang Dingmin

Feb. 11 (Bloomberg) -- China will help catering companies set up breakfast-serving chain stores in its bigger cities as part of efforts to boost consumption, the Ministry of Commerce said today.

The government will also quicken the establishment of a “safe-meat” service system that includes food-quality monitoring and upgraded slaughter houses, the ministry said in a statement on its Web site. The state will subsidize interest payments for bank loans, it said, without elaborating.

The government said Dec. 31 it will expand its distribution network to increase consumption in rural areas and counter an economic slowdown. Public spending on the rural logistics system and the service industry will increase in 2009 and years ahead, the ministry of commerce said today.

Funding support will also be available for information systems used by second-hand automobile markets and for technical upgrades by companies recycling junk cars, the ministry said.

The government will grant more subsidies to encourage companies replacing worn-out vehicles with new ones, the ministry said without giving details.

To contact the reporter for this story: Zhang Dingmin in Beijing at Dzhang14@bloomberg.net

Last Updated: February 11, 2009 02:21 EST

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