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Li promises full use of fiscal weapons

By An Baijie (China Daily) Updated: 2015-11-11 07:04

Li promises full use of fiscal weapons

A stevedore works at Qingdao port in Shandong province, July 1, 2015. [Photo/IC]

Expect reduced taxes and help in upgrading, businesses told

Premier Li Keqiang promised that China will use several powerful policy weapons to boost growth as the economy experiences a lingering slowdown and historic transition.

Soon afterward, a meeting of the Central Leading Group for Financial and Economic Affairs, headed by President Xi Jinping, called on Tuesday for effective measures to add fuel to sustain growth and reform.

To lead to a major lift in the nation's productivity, the government will ensure a steady business environment for all major sectors of the market, the president said.

In Li's exchange of opinions with economists and businessmen on Monday, the premier pointed out that the country's economic growth is facing many challenges, both domestically and overseas, and that the government will stabilize the economy and achieve medium-to-high growth.

The government will make full use of fiscal policies, reduce taxes properly and help companies to overcome their difficulties and upgrade structure, Li told the meeting.

The government will invest more to improve infrastructure in central and western China to achieve balanced development, and private companies are welcome to invest in such projects, Li said.

The premier also promised to keep innovation in monetary policies in an effort to provide better services to the real economy and to reduce companies' costs of financing.

Additionally, the government will make efforts to create a fair environment for market competition, enhance supervision of the quality of goods and set a stricter standard for industrial upgrade, Li said.

The premier said that innovation should be at the core of the national strategy. Only reform and innovation can help China better use the talents and skills of its workforce and meet the diverse demands of its people, he added.

Meng Jinxian, chairman of Wumart Stores Inc, told the premier that the price of electricity for commercial establishments is too high compared with the price for factories, and this has increased the costs for supermarkets like Wumart.

After hearing Meng's complaints, Li urged officials from the National Energy Administration to send an inspection team to investigate electricity prices.

"We should allow the companies to take a breath," the premier said, adding that the government will use multiple tools including taxation, finance, industrial policies and prices to help companies get by.

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