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1t yuan promise fulfilled to light up the market

Updated: Jun 10,2017 9:04 PM

In the early days of reform and opening-up, private economy sprang up thanks to government policies. Many people still remember the successful story of Shazi Guazi (Fool’s sunflower seeds), a private nut snack seller in the early 1980s, which showed how policies could stimulate the market.

Such a story never ends, as the State Council has been making huge efforts since 2016 to implement policies aimed at reducing taxes and administrative fees for businesses.

During this year’s two sessions, Premier Li Keqiang promised that one trillion yuan ($147 billion) of enterprise burdens would be relieved in 2017.

In the following three months, a series of measures were released, which resulted in 718 billion yuan of tax cuts and fee deductions. At a State Council executive meeting on June 7, a decision was made to further cut 283 billion yuan in corporate costs, bringing the total number to one trillion yuan this year.

To reduce institutional costs for the market, the June 7 executive meeting also decided that a list of central and local government funds and administrative fees should be published online before July 1.

All these efforts are to reassure the market, and with a stable prospect, more vigor will be triggered and more successful business stories will emerge, such as the Three Squirrels, a nut snack seller who also is based in Anhui province, just like the Shazi Guazi. Within five years, it has become the biggest online food seller and a successful case for many start-ups to learn from.