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Real economy gets strong support from govt

Updated: Oct 8,2018 2:41 PM

Keywords from the last six months of State Council executive meetings: Real economy

Premier Li Keqiang stressed in the Government Work Report this year that in economic development we need to focus on the real economy.

Cutting more administrative fees for enterprises, reducing the cost of logistics, and fiscal and financial support are among the strategies presented. Over the past six months since the new term of government began, those attending the State Council executive meetings constantly released measures and signals to encourage the development of the real economy.

State Council executive meeting on April 4

Decisions were made to cut more administrative charges for enterprises, and reduce costs for the real economy. More than 300 billion yuan ($47.6 billion) will be cut annually.

Quotes from the Premier:

-Extending the policy of reducing fees can not only help businesses cut costs, but encourage enterprises to bring benefits to their employees.

-Governmental charges must go through strict examination and approval; institutional mechanisms should be improved for business service fees.

State Council executive meeting on May 16

Decisions were made to further reduce the cost of logistics, and 12 billion yuan is expected to be cut annually.

Quotes from the Premier:

-We should further streamline administration, delegate power and cut taxes and institutional trade costs to relieve the burden for enterprises and promote lower cost but higher efficiency for logistics, thus pushing forward economic development.

State Council executive meeting on June 27

Decisions were made to optimize the transportation system to improve its efficiency, and lower logistics costs.

Quotes from the Premier:

-Structural adjustment and efficiency improvement in the sector not only lower the logistics costs for society but also boost the development of the real economy and efficient investment. This has significant meaning for the development of the Chinese economy.

-Whether we use traditional transportation, or Internet Plus transportation, safety is the bottom line, and related departments should take measures according to the law in coping with any cases.

State Council executive meeting on July 23

Decisions were made to make better use of fiscal and financial policies to bolster the real economy through domestic demand expansion and economic restructuring.

Quotes from the Premier:

-We should continue with stable macro policies, and firmly refrain from resorting to a deluge of strong stimulus policies. Targeted and well-timed regulation will be given in the face of external uncertainties to ensure the economy performs within a reasonable range. Fiscal and financial policies should be coordinated to serve the real economy and macroscopic situation more effectively.

State Council executive meeting on Aug 30

A report on the implementation of tax and fee cuts policies was heard. Decisions were made to roll out new measures in tax and cost reductions to support the development of the real economy. Another 45 billion-plus yuan of corporate tax burden is expected to be cut in 2018.

Quotes from the Premier:

-Tax and fee cuts are important for sustaining the positive momentum of steady economic growth. Existing measures should be fully implemented, and those who have been slack at the work will be held accountable.

-Once enterprises are prosperous, the market will thrive, and economy will become strong.