This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23445528
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| China unveils fresh measures to boost growth | China unveils fresh measures to boost growth |
| (about 1 hour later) | |
| China has unveiled a series of moves aimed at boosting growth, indicating that policymakers are concerned about the slowdown in its economy. | China has unveiled a series of moves aimed at boosting growth, indicating that policymakers are concerned about the slowdown in its economy. |
| The steps include tax breaks for small businesses, reduced fees for exporters and opening up of railway construction. | 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. | 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. | |
| "The economy is still running in a reasonable range," the cabinet said. | "The economy is still running in a reasonable range," the cabinet said. |
| "We must look at now and beyond to let restructuring and reform play an active role in stabilising growth." | |
| 'An olive branch' | 'An olive branch' |
| Data released earlier this month showed that China's economic growth slowed in the April to June period. | 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. | 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. | |
| On Wednesday, an initial survey carried out by HSBC indicated that factory activity in China has continued to contract, falling to an 11-month low in July. | |
| At the same time, policymakers have found it tough to boost domestic consumption enough to offset the decline in foreign sales - triggering fears of a further slowdown in China's economy. | |
| Prompted by the slowdown, China's policymakers have announced fresh moves to boost growth. | Prompted by the slowdown, China's policymakers have announced fresh moves to boost growth. |
| Beijing said it would suspend value-added tax (VAT) and turnover tax for small businesses with monthly sales of less than 20,000 yuan ($3,257; £2,125), starting from 1 August. | |
| The cabinet said the move would benefit more than six million small companies and boost the employment and income for millions of people. | |
| Policymakers said they would also implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises. | |
| Analysts said that the moves were aimed at cushioning the impact of slowing growth on small businesses. | |
| "It does look like an olive branch that the government has extended to smaller businesses amid the recent slowdown in growth," Vishnu Varathan, an economist with Mizuho Bank told the BBC. | "It does look like an olive branch that the government has extended to smaller businesses amid the recent slowdown in growth," Vishnu Varathan, an economist with Mizuho Bank told the BBC. |
| "While they have not announced a massive stimulus boost or gone on a credit binge as in the past - they are keeping a look-out for those that may be affected the most by slowing economic growth." | "While they have not announced a massive stimulus boost or gone on a credit binge as in the past - they are keeping a look-out for those that may be affected the most by slowing economic growth." |
| Railway reform | Railway reform |
| The cabinet added that it would also completely open China's railway construction market to ensure that the country can develop the sector further. | The cabinet added that it would also completely open China's railway construction market to ensure that the country can develop the sector further. |
| It said it would set up a railway development fund, with the initial money coming from the government. | |
| However, it will encourage private players to invest in the sector. | However, it will encourage private players to invest in the sector. |
| The state-owned Xinhua news agency reported that private players "will have ownership and management rights for inter-city railway links and municipal rail links". | The state-owned Xinhua news agency reported that private players "will have ownership and management rights for inter-city railway links and municipal rail links". |
| The government said it would also issue new bonds to help fund railway construction. | |
| "We must speed up preparation work to ensure a timely start to key projects in the 12th five-year plan, and push them ahead at a reasonable pace, while ensuring quality," the cabinet said. | "We must speed up preparation work to ensure a timely start to key projects in the 12th five-year plan, and push them ahead at a reasonable pace, while ensuring quality," the cabinet said. |