The State Council, China’s cabinet, issued a circular on May 31 detailing a package of policies to stabilize the country’s economy. The plan aims to promote high-quality development, effectively coordinate epidemic control and economic development, in order to protect people’s life and health and mitigate the negative impact of the COVID-19 pandemic.

Governments of provinces, autonomous regions and municipalities are required to wield leadership according to the 33 detailed policy measures and arrangements in the policy package.

In finance, China will further enhance value-added tax credit refund policies and tighten the fiscal expenditure schedule. Local government special bonds issuance and utilization should be accelerated with a service extension. Government financing guarantee policies should be activated. Government procurement should further support small and medium-sized enterprises. Social security premiums deferral and employment support policies will be enhanced.

Regarding monetary and financial policies, China encourages delayed repayment of capital and interest on loans for small and medium-sized enterprises, self-employed individuals, truck drivers, and personal housing and consumption loans affected by COVID-19. Inclusive loans to micro and small businesses will be expanded. Real lending rates will be stable with a slight decline, and financing efficiency of capital market will be improved.

In stabilizing investment and promoting consumption, China will accelerate some approved water conservancy programs and speed up investment on transportation infrastructure, continue to build urban underground pipelines, stabilize and expand private investment, promote a healthy and standardized development of the platform economy, and plan to see steady growth in major purchases such as automobiles and home appliances.

China will also spend more efforts in food and energy security. Policies on grains profit guarantee for farmers will be intensified. High-quality coal will be produced while ensuring safety, environment-friendliness and efficient utilization, and some major energy projects will be launched.

To stabilize industry and supply chains, China will reduce utility costs for market entities, gradually reduce and exempt their rent, and help ease the burden on sectors and industries severely affected by the pandemic, such as civil aviation. Enterprises’ resumption and smooth transportation and logistics policies will be optimized, and more support will be provided to logistics hubs and enterprises. Major foreign-funded projects will be prioritized to attract foreign investment.

As for policies concerning people’s livelihood, China will implement support policies for housing provident funds, bolster the employment and entrepreneurship of rural migrant population and rural labor, and enhance social security guarantee measures.