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China's Proactive Fiscal Policy for Economic Recovery
China's government is using significant fiscal measures, including special bonds and tax cuts, to boost its economic recovery and address local government debt.
English
China
ChinaEconomic GrowthFiscal PolicyGovernment SpendingEconomic StimulusDebt Management
Ministry Of Finance (Mof)Ministry Of Commerce (Moc)
Lan Fo'anLi Gang
- What methods is China using to enhance its proactive fiscal policy and promote economic recovery?
- China's proactive fiscal policy uses various tools like special treasury bonds and tax reductions to boost economic recovery. About 700 billion yuan is earmarked for investment in key areas, including scientific and technological innovation and infrastructure.
- What measures are being taken to promote steady consumption growth, and what are the results so far?
- A large-scale equipment upgrade and consumer goods trade-in program, supported by 300 billion yuan, aims to stimulate consumption. As of October 24th, over 1.5 million applications for scrappage incentives had been received.
- How are special treasury bonds and government funds being allocated to support key areas of development?
- The 3.9 trillion yuan in special-purpose bonds for local governments supports over 30,000 projects, while 700 billion yuan from ultra-long special treasury bonds backs major national strategies and security.
- What role do tax and fee policies play in supporting the economy, and what are the planned future actions?
- Tax and fee cuts exceeding 1.8 trillion yuan support scientific and technological innovation and the manufacturing industry. The government plans further targeted fiscal measures, including increasing the debt ceiling to alleviate local government debt risks.
- What significant steps are being taken to address local government debt risks, and what is the expected impact?
- Minister of Finance Lan Fo'an announced a package of incremental fiscal policy measures to boost the economy, including a significant increase in the debt ceiling to resolve local government debt issues and stimulate economic growth.