China has removed tariffs and value-added taxes on core equipment, components and raw materials imported and used in civilian hitech projects, according to a circular from the Ministry of Finance and related departments.

The move looks to encourage research and development of the nation's hi-tech industry.

The projects that have been exempt from taxation include core electronics, high-end universal chips, basic software, integrated circuit-manufacturing equipment, new generation wireless mobile communication networks, and new drugs for prevention and treatment of some infectious diseases such as AIDS and hepatitis.