Ship builders to get govt ballast

China's State Council, or the Cabinet, yesterday approved a stimulus package for the country's shipbuilding industry in a bid to help the emerging sector better weather the global economic downturn.

The government said it will encourage financial institutions to lend more to ship buyers and also offer incentives for purchasers of ocean-going ships until 2012. The country will also support the industry in technology upgrades, it said.

The government will limit new capacity in the industry and is working on a policy to scrap outdated ships. It will also encourage construction of advanced ships and promote mergers and acquisitions within the industry.