The country’s purchasing managers’ index (PMI) was 47.4% in April, the lowest in the last twelve months, the National Bureau of Statistics disclosed.
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China’s Premier Li Keqiang pledged a package of measures to stabilize the economy at an executive meeting of The State Council.
The stimulus package highlights fiscal policies, which will provide CNY 2.64 trillion in tax rebates and reductions this year, extending the deferment of pension and other social security premiums for individual small, medium and micro businesses.
It also commits to double the amount and proportion of the small and micro loan support facility, postponing the repayment of principal and interest within the year for loans to small, medium and micro businesses, truck loans, mortgages and consumer loans.
The package aims to stabilize the supply chains as well. The country will improve policies for back-to-work and production, ensure the smooth flow of freight, ease traffic restrictions and remove unreasonable measurements. It expects to increase domestic and international passenger flights gradually.
Policies of facilitating consumption and investment will temporarily reduce the purchase tax on some light vehicles, support rigid and improved housing projects, and increase infrastructure.
On the energy aspect, local governments are going to adjust incentives for nuclear energy production and coal mining policies.
Last but not least, the meeting mentioned offering unemployment benefits, allowances and assistance to people in need and launching a mechanism to increase social assistance and social security benefits when goods prices rise.
Article by Niko Yang, EqualOcean.
