Highlights of China's policy package to stabilize economy

Workers are busy in a workshop of Harbin Turbine Company Ltd. of Harbin Electric Corporation in Harbin, northeast China's Heilongjiang Province, May 7, 2022. [Xinhua/Wang Jianwei]

BEIJING -- Chinese authorities have unveiled a package of detailed policy measures to further stabilize the economy and better coordinate epidemic control and economic development.

The package, which was announced at a State Council executive meeting in May, includes 33 measures covering fiscal and financial policies, as well as policies on investment, consumption, food and energy security, industrial and supply chains and people's livelihoods. The following are some highlights of the policy package.

-- In finance, China will further enhance value-added tax credit refund policies and quicken its fiscal spending schedule. Local government special bonds issuance and utilization will be accelerated with a service extension. Government financing guarantee policies will be activated and social security premiums deferral and employment support policies will be enhanced.

-- In terms of monetary and financial policies, China encourages delayed repayment of capital and interests on loans for small and medium-sized enterprises, self-employed individuals, truck drivers, and personal housing and consumption loans affected by COVID-19. Inclusive loans to micro and small businesses will be expanded. Real lending rates will be stable with a slight decline, and improvements will be made to the financing efficiency of capital markets.

-- In stabilizing investment and promoting consumption, China will accelerate some approved water conservancy projects and speed up investment on transportation infrastructure, continue to build urban underground pipelines, stabilize and expand private investment, promote the healthy and standardized development of the platform economy, and stimulate purchases of cars and home appliances.

-- Regarding food and energy security, policies on grains profit guarantee for farmers will be intensified. Quality coal will be produced while ensuring safety, environment-friendliness and efficient utilization. In addition, some major energy projects will be launched.

-- To stabilize industrial and supply chains, China will reduce utility costs for market entities, gradually reduce and exempt their rent, and help ease the burden on sectors and companies severely affected by the pandemic. Enterprises' work resumption, and smooth transportation and logistics policies will be optimized. More support will be provided to logistics hubs and enterprises. Major foreign-funded projects will be prioritized to attract foreign investment.

-- As for policies concerning people's livelihoods, China will implement support policies for housing provident funds, bolster the employment and entrepreneurship of rural migrant population and rural labor, and enhance social security guarantee measures.