Facing slowing economic growth, China’s premier promises relief for business

The annual report by Li Keqiang, the No. 2 leader, laid out promises to reduce burdens on the private sector and warned about “struggle” ahead. NYT

'China’s premier said on Tuesday that his government would respond to an economic slowdown by cutting taxes, easing burdens on the private sector and giving markets a bigger role — diluting the heavily pro-state pronouncements and policies that critics have warned were scaring investors,' reports NYT's Keith Bradsher and Chris Buckley.

• 'Calling 2019 a “crucial year” for China’s economy, Premier Li Keqiang, the second-ranking official in China after President Xi Jinping, laid out measures long supported by private businesses.
• 'Mr. Li’s annual report to the national legislature revived rhetoric about market solutions after the government faced growing criticism for favoring government initiatives and state-owned companies, squeezing out private enterprise.
• '“We will keep using market-oriented reforming thinking,” Mr. Li said in his report. “The government must act with resolve to hand matters it shouldn’t manage over to the market.”'
• “We will face a graver and more complicated environment, as well as risks and challenges,” Mr. Li said. “We must be fully prepared for a tough struggle.”'

'Mr. Li set an ambitious target for economic growth this year of 6 to 6.5 percent.

• 'The three main choices for maintaining high growth have been to further ramp up spending on roads, bridges, rail lines and other infrastructure; to print more money and force banks to lend more; or to cut taxes and deregulate.
• 'The government has been slow to cut taxes or deregulate, preferring to maintain its revenues and control. But many tycoons want lower taxes.'

Overall, '“This was not a leadership that appeared strong and decisive with a clear vision,” says Elizabeth C. Economy of the Council on Foreign Relations.

'Two Sessions' I

More articles from this issue

1. Facing slowing economic growth, China’s premier promises relief for business

2. Six key takeaways from China's annual policy blueprint

3. China’s Stimulus Muddle Deepens

4. China’s ‘two sessions’: an economic watershed or more of the same?

5. Xi Jinping Works to Stifle Dissent Amid Concerns About China’s Economy

6. FINTECH: Two Sessions Sends Strong Signals on Support for Chinese Fintech Development

7. How tea is served in the Great Hall of the People in China

8. 'Two Sessions': A rap song extolling China's annual political meeting

March 9, 2019