Chinese city offers financial incentives to boost laptop shipment

Local government of Chongqing in Southwest China will reward laptop makers total of US$23.8 million, if shipments made in May or June exceed that of any month from January to April.

The local government of Chongqing city in Sichuan province, Southwest China, is offering financial prizes of up to 150 million yuan (US$23.8 million) to drive laptop shipments, report states.

According to Taiwanese news daily DigiTimes, in an article Wednesday, to get the incentive, manufacturers would have to exceed--in either May or June--their shipments from any month between January and April. The report cited unnamed sources from Taiwan-based supply chain makers.

It also noted that although the laptop makers were eager to qualify for the prize, most were conservative about hitting the required targets because of labor shortages and difficulties in scaling up production in time.

This follows news in April that the Chongqing government was reportedly giving out subsidies to attract laptop vendors to the city, amid stiff competition for investment from neighboring Chengdu city.

DigiTimes noted that laptop shipments in Chongqing rose 888 percent in the first quarter of 2012 from last year to reach 10.7 million units, with 9.2 million units shipped to markets outside of China. It added that laptops accounted for 53.8 percent of the city's exports in terms of value, citing official government statistics.