Here are China’s 19 new measures to support economic growth
(Bloomberg) – China on Wednesday announced 19 new policies aimed at bolstering efforts to salvage economic growth, which is weakening again with a resurgence in Covid cases, a worsening housing crisis and now power shortages caused by severe drought.
The measures – unveiled by the State Council, the country’s cabinet – include more than 1 trillion yuan ($146 billion) in new funding to boost investment and consumption, as well as greater flexibility for local authorities to support the real estate market. They also contain policies intended to remove logistical barriers and help companies more easily move their staff across borders.
Read more: China plans more measures to stabilize economy as recovery slows
The package adds to 33 policies the government introduced just three months ago, involving trillions of yuan in relief for the world’s second-largest economy, which at the time had fallen into a slump in part due to curbs to contain China’s worst Covid outbreak in two years.
Here are the specific details that have been announced so far on the 19 measures, as reported by the official Xinhua News Agency:
- The government will provide more than 300 billion yuan in additional funding for a program that has given state political banks the tools to fund infrastructure projects, doubling the scale of a plan announced in late June.
- Local governments are urged to utilize more than 500 billion yuan of existing special caps by the end of October.
- A batch of infrastructure projects will be approved to start construction. Projects must be profitable, their quality must be assured and the funds must not be used for other purposes.
- Central government-run power generation companies will be supported to sell 200 billion yuan of special debt to ensure power supply.
- Local governments will be allowed to use city-specific credit policies flexibly and reasonably support demand for first homes and better housing.
Help for businesses
- Measures to support the development and investment of private enterprises will be introduced, and the healthy and sustainable growth of the platform economy will be encouraged.
- The government will make it easier for business people to travel inside and outside the country.
- Businesses will be allowed to delay payment of their administrative costs by a quarter.
- Local governments will be encouraged to establish risk compensation funds for loans to micro, small and medium enterprises and individual business owners.
- Authorities will continue to take measures to ensure smooth logistics.
- Some 10 billion yuan of subsidies for agricultural equipment will be granted in addition to the 30 billion yuan already granted this year.
- Government agencies are urged to “promptly” release specific details for policy implementation, and local authorities are expected to introduce support measures.
- The State Council will send supervision and working groups to the regions; teams led by heads of central government agencies will be dispatched to economically strong provinces to improve the efficiency of project approvals and speed up the implementation of measures.
- The work of local officials to stabilize the economy will be supervised by the State Council inspectors, who will also provide the necessary assistance to carry out the task.
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