A State Council executive meeting presided over by Premier Li Keqiang on August 19 decided to develop the modern circulation industry and big data industry, and provide tax preference to small and micro businesses.

The meeting noted that further development of the modern circulation industry, which is significant to production and consumption, could improve economic structure and promote the transformation of development mode.

To develop the modern circulation industry, the government will create an environment of fair competition by prohibiting the abuse of administrative power and dominating market status, promote e-commerce and other new circulation patterns, innovate in the regulation mechanisms of the circulation industry market, improve the management of circulation facilities, and encourage private sector investment.

The meeting passed a guideline of big data development in a bid to promote mass entrepreneurship and innovation and upgrade traditional industries, building new engines to drive the economy and creating new advantages in international competition.

According to the guideline, the government will promote information sharing between government information systems and public data, integrate government information platforms, provide policy support for the big data industry, strengthen information security, and improves the big data industry standard.

The meeting also decided that more small and micro businesses will be eligible for tax breaks as China strives to encourage innovation and boost employment to counter downward economic pressure. Small and micro businesses with annual taxable incomes below 300,000 yuan ($46,920) will be eligible for a 50 percent reduction of business income tax. The favorable policy will be effective until the end of 2017.

In addition, the meeting also decided to extend the exemption of value-added tax and sales tax for small businesses and individually-owned businesses with 20,000-30,000 yuan monthly sales to the end of 2017. Previously, such exemption was due to end by the end of this year.