World’s second largest economy, China, will be cutting billions of dollars in taxes and fees to expand its economy, according to the annual report of Premier Li Kequiang.
The country is planning to cut back 6 to 6.5 per cent from 2018’s target economic growth of 6.5 per cent.
The lower bound of GDP of China last year is recorded as the ‘slowest economic growth for the last three decades.’ With trade wars with the United States and crackdown of Beijing’s peer-to-peer lending, the economy of the country suffered altogether.
Moreover, the Chinese’ vast manufacturing sector also rolled down with pollution and low-value industry policies.
To support economic growth, the government will be cutting $298.31 B in taxes and fees for companies. A VAT will also be reduced to make way for transport, manufacturing and construction sectors.
In addition to lowered taxes, the country also lowered requirements for commercial and business loans to create more jobs vital for the economy. Li said Beijing banks will need to boost lending for small to medium-sized companies.
In terms of trade, the United States is planning to have a deal with China in relation to US tariffs charged for Chinese goods. The country with the world’s largest economy is set to come up with a deal that would end the trade war between China.
The trade war between the two nations went on after US President Donald Trump proposed new tariffs to half of the Chinese goods to force ‘trade concessions.’