March 2019 - China ready to help economy under 'pressure' - News - SHOWCASE

Evarado Alatorre
Marcha 17, 2019

"We have to prepare more and we have reserved policy room (to address uncertainties)", Li told a news conference after the annual parliament meeting ended.

China has announced that it will cut a total of two trillion yuan (USD 297.5 billion) in taxes and corporate pension payments this year to ease financial pressure on enterprises.

Further cuts in RRR had been widely expected this year, after fresh data pointed to persistently soft demand in the Asian economic giant, raising fears of a sharper slowdown.

"Large-scale tax cuts and fee reductions would affect the government, cutting its own flesh", Li said.

China and the united states have become closely intertwined through years of development and cooperation, it is neither realistic nor possible to decouple the two economies, he said.

China will introduce a series of regulations and documents in accordance with the foreign investment law to protect the legitimate rights and interests of foreign investors, he said skirting question that whether it was passed in a hurry to meet the United States demands to a end trade war.

He said that maintaining growth would ensure that employment remains stable.

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"In terms of policy support - we may provide public rental housing units to private actors to provide services such as mobility, daycare, etc. Tax breaks may be provided to these service providers in terms of expenses on water, electricity and natural gas", he said.

China's new foreign investment law, which was first tabled for reading last December, states in broad terms that foreign firms will receive the same treatment as local ones when it comes to government procurement, and that the authorities will not force technology transfer in exchange for access to China's markets.

The law, created to ease concerns among foreign companies about the difficulties they face in China, will ban forced technology transfer and illegal government "interference" in foreign business practices.

But the new law will be followed up in the coming months with more measures to make it "truly operable", said Mr Li.

Li stressed that China did not, and would never, ask Chinese companies to spy on other countries.

Li has also said the government would develop innovative mechanisms to better match people's supply and market demand. The talks and tensions stretch far beyond trade and tariffs. This article is strictly for informational purposes only. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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