Second round

The second round of the policy started on December 1 and covers 14 provinces, municipalities and autonomous regions as compared to the three trial areas in the first round. Preferential products included washing machines as well as the color televisions, refrigerators and mobile phones from the first round.

Apart from turning to the rural market, a new round of price wars has begun.

TCL slashed the price of its 52-inch LCD televisions by 30 percent to 9,999 yuan at the beginning of November, the first time the price fell below 10,000 yuan.

It triggered an upsurge in price battles, followed by other major domestic companies including Konka, Hisense, Changhong and Skyworth. The price of 52-inch LCD televisions fell below 10,000 yuan across the country, and showed that big screen LCD televisions have become commonplace.

Wen Jianping, the vice president of All View Consulting Ltd, predicts another round of price cuts with raw material prices on a downward trend and lower flat panel prices increasing profitability.

(Shanghai Daily December 3, 2008)