The State Council, or China's Cabinet, announced plans to boost the country's light industry and petrochemical sectors in a bid to stimulate the economy.

The country will lift processing trade restrictions on some labor-intensive, technology-intensive, energy-efficient, and environment-friendly products, according to an executive meeting of the State Council on Thursday.

The government would further raise export rebates of some light industrial products, and extend fiscal and credit support to small and medium-sized firms within the sector.

It was decided at the meeting, two more products -- microwave ovens and induction cookers -- will be added to the list of home appliances that come with a government subsidy for rural buyers.

The government will act to expand urban and rural consumption and to increase supply of light industrial products on the domestic market, and at the same time, efforts will be made to improve foreign trade services and maintain export volume.

Technological upgrades within the industry was stressed, with focuses on independent development of equipment and industrialization of key technologies. Technological upgrades in the fields of paper making, home appliance and plastic sectors will be sped up.

Attendees to the meeting, which was chaired by Premier Wen Jiabao, also agreed that the food processing sector should be straightened out to ensure food safety in the country.

There would be higher standards for creation of new firms in the food processing sector, better recall systems for products and withdrawal mechanism for firms. There would also be more severe punishment for making and selling fake and substandard products.

The light industry firms were urged to step up efforts in developing their own brands and improving the quality of products.