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The Chinese government has announced that it will maintain a neutral monetary policy “/>
it will modify its fiscal and financial policy to support the expansion of domestic demand and stimulate the development of the real economy, as a form of protection against the crisis generated by the protectionist measures taken by the United States.
Will be measures to promote the effective investment and improve the standard of living of the people, announced at the State Council executive meeting. The decision will attempt to cope with external uncertainty without resorting to strong monetary stimulus.
The slowing of economic growth has prompted debate among government authorities as to whether fiscal policy should have a more prominent role in mitigating the impact of the Cina-US trade war with the United States. United.
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"Proactive tax policy will be even more active," according to the statement released after the Cabinet meeting.
Fiscal policy will focus on reducing corporate taxes and speeding up the issuance of special local government bonds.
The government will approve a $ 9.6 billion tax cut through the expansion of an initiative that benefits technology companies and will now be available to all businesses, that will add to the overall goal of reducing all taxes and duties by US $ 162 billion.
China will maintain abundant liquidity and adequate social financing, in accordance with prudent monetary policy, which will not be too restrictive or restrictive. He added that economic growth had slowed slightly to 6.7% in the second quarter, because of Beijing's efforts It affected the business, while the production of factories weakened in June to reach its lowest level in two years, due to concerns over the effects of the tariff war.
which led the central bank to reduce its bank reserve three times this year.
The People's Bank of China also injected $ 74.3 billion into the market through medium-term loans with liquidity facilities. . These are one year funds with a 3.3% interest rate.
BPCh is increasingly using open market operations, instead of interest rate or reserve requirement changes, to manage China will maintain a prudent and neutral monetary policy in 2018, when it wants to balance growth and risk prevention
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