Local govts ask appliance makers to return subsidies

Local governments have asked major Chinese home-appliance makers to return the subsidies given to boost sales of energy-efficient products after reports of widespread misappropriation.

Appliance makers like Sichuan Changhong Electric Co Ltd, Skyworth Digital Holdings Ltd and TCL Corporation confirmed the development and said they have received notices from the respective local finance department asking for repayment of the subsidy.

According to a statement issued by Changhong in December, the Sichuan provincial finance department has decided to withdraw the 439 million yuan ($66.74 million) given to the company to subsidize sales of flat-panel televisions.