China to initiate steps to keep major economic indicators stable

"Without a certain level of GDP [gross domestic product] growth, stable employment cannot be realised. One good thing is that we refrained from excessive money supply and mass stimulus in the past few years, and we still have policy tools in reserve," Li said.

Noting the increasing downward pressure on the economy and the serious difficulties facing many market entities, the meeting stressed the need to stay confident, respond resolutely, fully apply the new development philosophy and coordinate COVID response with economic and social development with high efficiency, official Chinese media reported.

The meeting decided to implement 33 measures in six aspects, which mainly include fiscal and related policies to keep the operation of market entities and employment stable.

The policy of refunding outstanding and newly added value added tax (VAT) credits will be extended to more industries, which is expected to increase tax refunds by 140-plus billion yuan and bring the total amount of tax relief this year to 2.64 trillion yuan.

The policy of deferred premium payments of old-age, unemployment and workplace safety insurance programmes by micro, small and medium enterprises (MSMEs), self-employed households and companies in the five hard-hit sectors—catering, retail, tourism, civil aviation and highway, waterway and railway transportation—will be prolonged till the end of this year, and extended to other industries facing serious difficulties. As a result, the deferred payment this year will reach 320 billion yuan.

The subsidy for retaining employees under unemployment insurance will be extended to all hard-hit enterprises participating in the scheme. Greater support such as social insurance contributions subsidies will be provided to MSMEs that hire college graduates. Localities should scale up support to micro and small businesses and self-employed households in terms of utility bills and rentals.

The meeting decided to take a string of financial policies. The scale of the support facility for inclusive loans to micro and small businesses, and its share of the increase in the loan balance will both be doubled this year.

Banks will be supported in deferring, within this year, principal and interest repayments on loans made to MSMEs and self-employed households, truck loans, and home loans and consumer loans borne by individuals facing temporary difficulties.

The payment period of commercial acceptance bills will be cut from one year to six months. Platform companies will be encouraged to list on domestic and overseas markets in accordance with laws and regulations.

The meeting adopted measures to stabilise industrial and supply chains as well. The policies to enable early reopening of enterprises and their full-capacity production will be fine-tuned. Service for white-listed enterprises will be improved.

Freight logistics will be kept smooth. Restrictions on the passage of trucks from low-COVID-risk areas will be lifted and all undue height limits and arbitrary charges scrapped. Non-local drivers of passenger and cargo vehicles will have equal access to free COVID testing as local residents.

A new round of rural road construction and renovation will be launched. The issuance of 300 billion yuan of railway construction bonds will be supported. More will be done to promote public works programmes.

Energy security will be ensured. Local governments must fulfill their responsibilities for maintaining coal output. The policy for approving higher production capacity of coal mines will be recalibrated, and procedures for designating coal mines especially important for energy supply will be accelerated. A number of new hydropower and coal-fired power projects will start this year.

Fibre2Fashion News Desk (DS)