The government-funded home appliances going to the countryside project has provided many small and medium sized enterprises opportunities to explore rural markets. According to a newly released regulation, the selected enterprises that failed to pass examinations will be eliminated.
At present, China has 365 manufacturing enterprises and 362 selling companies throughout the country that are qualified for the home appliances going to the countryside program.
Starting from January 1st 2010, China's Ministry of Commerce and the Ministry of Finance will carry out performance evaluation every three months to these enterprises. Companies ranking at the last 5% will be warned. Enterprises ranking at the last 5% in half a year and the average points are no higher than 60 will be removed from official list.
According to the new rules, manufacturers that have quality problems, production accidents or any regulation violations will lose their qualifications.
Manufacturers and dealers will also be eliminated from the project in the following conditions: After the selection, relevant home appliances without any production within three months or sales volume within 6 months; dealers do not provide customers with sales invoice or do not put the sales record into the information system, with 3 or more client complaints; and bogus advertisements or higher sales price than the selected one.
The home appliances going to the countryside project, launched in the end of 2007, is a government-funded program aiming to expand sales of household electric appliances in the country's vast rural areas with subsidies.
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