China has scrapped tariffs and value-added taxes on core equipment, components, and raw materials imported and used in civilian high-tech projects since July 15, according to a circular of the Ministry of Finance and other departments.

The move seeks to encourage research and development in the nation' s major strategic products, core technologies and major projects, said the circular.

The projects that have been exempted 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.