On July 23th, Chinese Premier Li Keqiang presided over an executive meeting, during which the State Council decided that China will press ahead with industrial restructuring and integrating fiscal and financial measures in its efforts to fuel domestic demand and underpin economic growth.
A deluge of policies are released in successive recently, signaling find-tuned and well-timed countermeasures the government has been rolling out in the escalation of trade war between China and US, in a bid to counter uncertainties and challenges that may arise.
As the world’s second-largest economy, it’s no easy job to maintain a moderately high rate of growth set up by the government of around 7 percent, and improve people’s well being by keeping vitality of the job market and seeking out more job creators of high-quality employment.
In the meeting, it is agreed that the government will implement a more proactive fiscal policy, with a focus on cutting tax and non-tax fees, in this way, more companies will be entitled to reduction in taxes on R&D spending.
According to Li, regulations and policies aiming at reducing costs for businesses should be considered in a broader context and environment, at the same time of supporting promising enterprises to enhance their prospects, the government is also resolved in phasing out “zombie” companies, who are a waste of money and energy, to make use of underused resources in a reasonable way.
The most arresting part is that the government is most supportive in making more concerted efforts to help enterprises in the high tech industry, especially those who have realized or are in a position to achieve technological advancements and contribute to industrial transformation and upgrading, including whose that are struggling from the blow of trade frictions. The government encourages such enterprises to keep the job for their employees and do not lay them off in haste when confronting temporary difficulties arising from the trade wars, say, shrinking profits, especially some manufacturing sectors whose growth are mainly exports-driven.
In Li’s Report on Government Work released in this March, a target of no less than 11 million new jobs were set for urban regions, which is to keep urban unemployment rate below 5.5 percent. According to the report, an annual growth rate of about 6.5 per cent will be able to realize this goal. Employment is a priority for people’s well being and economic development.
According to the NBS(National Bureau of Statistics) , the growth rate of GDP registered 6.8 in the first half of this year registered 6.8 percent, signaling the sound fundamentals of China’s economy. Li expressed his confidence that, with a multitude of emerging market entities and the supportive measures from the government, momentum of growth could be maintained for the latter half.