China Watch Blog has learnt that China’s economic growth is likely to rebound after the second quarter, supported by ongoing policy fine-tuning that focuses on fiscal measures while adjusting tight controls on the real estate market, top political advisers said on Tuesday.
Macroeconomic policies should be continually readjusted in the following months to sustain a relatively faster growth rate, according to a proposal from the Standing Committee of the Chinese People’s Political Consultative Conference National Committee, the country’s top political advisory body.
“Fiscal policy should be really proactive, reflected in more intensified tax cuts for small and micro-sized enterprises, especially in the emerging and modern service sectors, to reduce costs and promote profits for companies,” said the proposal issued on Tuesday.
The heavy tax burden, high loan costs and growing labor costs have become the main obstacles for Chinese companies in industrial sectors, said Liu Mingkang, former chairman of the China Banking Regulatory Commission and a CPPCC Standing Committee member.
As overseas demand weakens amid the eurozone debt crisis, China’s economic expansion may decelerate to its slowest pace in three years in the second quarter, following worse-than-expected data in May, according to economists, the China Daily reported.If you think China Watch Blog's information is useful, click on cup of coffee on left hand side and make a small contribution via PayPal