Even more provinces and cities across China will now benefit from a pilot scheme that offers subsidies to farmers buying home appliances. If all goes as planned, the program will see even further expansion February next year.

The Chinese government says 10 more provinces and cities will be part of the rural home appliance project when it kicks off on December the 1st.

According to the plan, the central government will give farmers a 13 percent subsidy on all purchases of certain household appliances.

The Chinese government says 10 more provinces and cities will be part of the rural home appliance project when it kicks off on December the 1st.

In fact, the list of such items has also been expanded. Washing machines have joined the original line-up which includes color TVs, refrigerators and mobile phones. Authorities have also lowered their requirements for manufacturers who provide appliances for the subsidy program.

Liu Haiquan, Ministry of Commerce said " We do not restrict enterprises based on production scale and revenue. As long as the quality is good, you can join the bid. Small and medium enterprises can also join the project."

Wang Bao'an, Ministry of Finance said "Products for rural areas must meet certain environmental standards. This will help save energy and cut emissions. It will also help improve the logistics network in rural areas."

And the project will be further expanded in February next year, when it will cover all rural areas, and stay in place until January 2013.

It is estimated that this four-year project will generate up to 920 billion yuan in consumption a big help for the household electronic appliance industry hit by the global financial crisis. The move also aims to tap potentially enormous demand across China's vast rural regions.

(CCTV December 2, 2008)