Chinese Government Announced Details of the New Economy Incentive Package

China shared the details of the economic stimulus package, which is planned to alleviate and stabilize the economic problems caused by the Covid-19 epidemic and geopolitical reasons, with the public.

The Chinese Government Announced the Details of the New Economy Incentive Package. Taking action to stabilize the economy, Chinese officials shared the details of the 33-item package, which covers investment, consumption, food and energy security, industry and supply chains, and people's livelihoods policies, as well as financial policies. The highlights were as follows:

• In the field of finance, it was decided to develop value-added tax credit refund policies and accelerate the fiscal spending program.
• It was stated that government financing guarantee policies will be activated, social security premiums deferral and employment support policies will be developed.
• It has also paved the way for delayed repayment of capital and interest on loans drawn for small and medium-sized businesses, self-employed, truck drivers and personal housing and consumer loans affected by COVID-19.
• Inclusive loans to micro and small businesses were expanded.
• It has been learned that real lending rates will be stabilized with a slight decrease and improvements will be made in the financing efficiency of capital markets.
• In addition, to stabilize investment and stimulate consumption, it will continue to build urban underground pipelines, accelerating some approved conservation projects and accelerating investment in transport infrastructure. It will stabilize and expand private investment, promote the healthy and standardized development of the platform economy, and encourage purchases of cars and household appliances.
• Grain profit guarantee policies applied to farmers will be intensified. While ensuring safe, environmentally friendly and efficient use, quality coal will be produced and some major energy projects will be initiated.
• To stabilize industry and supply chains, market institutions will reduce operating costs, gradually reduce and exempt their rents, and help ease the burden on industries and companies that are severely affected by the pandemic.

    Source: Investing.com