China will ensure stable economic growth in the first quarter of 2022, said Li Keqiang, the country’s prime minister, according to state radio.
The government will implement further tax and fee cuts and provide specific support to sectors affected by Covid-19, such as services, Li was quoted as saying.
China will expand existing tax breaks and increase deductions for research and development (R&D) expenses when companies calculate their income tax (ISR), Li added.
Amid further downward pressure on its economy, China is seeking to stabilize key sectors such as employment, finance, trade and investment, he added.
The world’s second-largest economy faces multiple challenges heading into 2022 due to a real estate recession and tight Covid-19 restrictions that have affected consumer spending.
Zhang Ming, a senior economist at the Chinese Academy of Social Sciences, a leading government think tank, said in a report that China’s economy could grow between 5.3 and 5.5% this year.
China will take more expansionary policies this year to prevent growth from slowing further from the fourth quarter of last year.
Reference-www.eleconomista.com.mx