China pledges support for ailing economy
China says it will roll out additional tax cuts and postpone social security payments for firms to support growth.
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This was announced by the state council, the Chinese cabinet on Monday, stating that Beijing will increase annual tax cuts by more than 140 billion yuan ($21 billion) to 2.64 trillion yuan, offer tax cuts to more economic sectors and postpone social security payments worth 320 billion yuan until the end of the year.
Other measures include 150 billion yuan ($22.5 billion) in emergency loans for the struggling aviation sector, the issuance of 300 billion yuan ($45 billion) in bonds to finance railway construction, and investment in new projects in the field. areas of energy, transport and water conservation.
“Currently, the downward pressure on the economy continues to build and it is very difficult for many market entities,” the cabinet said.
China’s leaders have pledged to ramp up support for the faltering economy, even as they are doubling down on an ultra-strict “dynamic zero-COVID” policy that has limited millions to their homes, shut down factories and disrupted supply chains.
MTO/Aljazeera
