1. China’s central government has delivered a one-off subsidy of RMB 10 billion to crop-growing farmers to support their summer harvest and autumn sowing, and offset the loss of income due to price hikes for farming materials.

 

2. In its recent executive meeting, the State Council rolled out 33 measures in six aspects to stabilize economic growth.

 

1) Fiscal and related policies will be adopted. The policy of refunding outstanding and newly added value added tax credits will be extended to more industries, which is expected to increase tax refunds by more than RMB 140 billion and bring the total amount of tax relief this year to RMB 2.64 trillion. The policy of deferred premium payments of old-age, unemployment and workplace safety insurance programs by micro, small and medium-sized enterprises, self-employed households and companies in the five hard-hit sectors will be prolonged till the end of this year, and extended to other industries facing serious difficulties. As a result, the deferred payment this year will reach RMB 320 billion. The subsidy for retaining employees under unemployment insurance will be extended to all hard-hit enterprises participating in the scheme. The re-guarantee business of the National Financing Guarantee Fund will be increased by more than RMB 1 trillion.

 

2) A string of financial policies will be taken. The scale of the support facility for inclusive loans to micro and small businesses will be doubled this year. Banks will be supported in deferring, within this year, principal and interest repayments on loans made to micro, small and medium-sized enterprises and self-employed households, as well as truck loans, home loans and consumer loans borne by individuals facing temporary difficulties. Banks and centrally-managed auto companies will work together to defer by six months the principal and interest repayments of the RMB 90 billion car loans extended by the auto companies. 

 

3) Industrial and supply chains will be stabilized. The policies to enable early reopening of enterprises and their full-capacity production will be fine-tuned. Freight logistics will be kept smooth. Restrictions on the passage of trucks from low-COVID-risk areas will be lifted and all undue limits and arbitrary charges will be scrapped. Domestic and international passenger flights will be increased in a well-paced manner.

 

4) Consumer spending and effective investment will be boosted. There will be a phased reduction of purchase tax totaling RMB 60 billion on some passenger vehicles. City-specific policies will be adopted to meet people's basic housing needs and their wish to improve housing conditions. A number of infrastructure projects will be launched, including water conservancy facilities, especially large-scale irrigation facilities, transportation facilities, renovation of old residential communities, and multi-purpose utility tunnels. Banks will be encouraged to provide long-term loans on a sizable scale.

 

5) Energy security will be ensured. Local governments must fulfill their responsibilities for maintaining coal output. The policy for approving higher production capacity of coal mines will be re-calibrated. A number of new power projects will start this year.

 

6) It is imperative to ensure people’s basic livelihood. Support must be provided for people eligible for unemployment benefits and subsistence allowances and people facing difficulties. The mechanism of raising social benefits to keep pace with price increase will be promptly activated should the situation require.

 

3. The Ministry of Finance and the Civil Aviation Administration issued a notice to implement phased financial subsidies for domestic passenger flights operated by domestic transport airlines.

 

 

1. According to the Ministry of Industry and Information Technology, the combined revenue of China’s telecom industry totaled RMB 529.2 billion in the January-April period, an increase of 8.8% year-on-year. The total volume of telecom services calculated at the same price last year was increased by 23.7% year-on-year.

 

2. The People's Bank of China announced that it issued RMB 25 billion worth of central bank bills in the Hong Kong Special Administrative Region on May 23.

 

3. The world's first 100,000-tonne smart aquaculture vessel "Guoxin-1" was delivered and put into operation in Qingdao, marking the technological breakthrough for China's deep-sea large-scale aquaculture industry.

 

4. The World Bank approved China's "green and carbon neutral city project", which aims to integrate biodiversity protection into the development process of the project's participating cities and establish a path to achieve carbon neutrality. The project amount reached USD 26.9091 million.

 

 

1. The fiscal revenue of some provinces and cities in China decreased significantly in April, mainly due to the implementation of large-scale tax rebates. The reduction of fiscal revenue caused by the implementation of the VAT credit refunds is an initiative to cope with the downward pressure on the economy. In essence, it will help enterprises generate fresh vitality and inject strong momentum into economic recovery.

 

2. This year, China will carry out pilot projects for the integration of domestic and foreign trade in some regions, and strive to form a replicable experience and model in three years. This move is of great significance for breaking the institutional barriers to the integration of domestic and foreign trade, helping market players make full use of both domestic and international markets and resources, and carry out efficient operation of domestic and foreign trade.

 

(Information Source: Economic Daily)