China begins a major effort to boost its economic growth with business tax breaks and export liberalization, amid an increasing industrial slowdown. The steps include tax breaks for small businesses, reduced fees for exporters and opening up of railway construction.
China’s economic growth rate has slowed for two quarters in a row and there are concerns that it may slow further. But the cabinet said the economy was in a reasonable shape and it was pushing for reforms to stabilise growth.
Data released earlier this month showed that China’s economic growth slowed in the April to June period.
The world’s second biggest economy grew by 7.5% compared to the previous year, down from 7.7% in the January to March period.
Its growth has been hurt by slowing demand for Chinese exports from key markets such as the US and Europe.