The Chinese government announced 33 new measures aimed at reviving their economy, which has been battered by the country’s zero-COVID-19 policies, according to Reuters (subscription).
What’s happening: China’s 5.5% growth target for 2022 is in jeopardy as COVID-19 outbreaks and extensive government-induced lockdowns hamper Chinese production and trade.
The scope: The government’s new measures cover fiscal, financial, investment and industrial policies. China’s cabinet said it will monitor provincial governments tasked with implementing the new measures.
- Tech: China’s government will promote the development of platform companies, encouraging breakthroughs in cloud computing, artificial intelligence and blockchain technologies.
- Auto industry: The government ordered localities not to expand curbs on auto purchases. The ministry of finance said it would cut the purchase tax for small-engine cars in half.
- Capital markets: “In terms of monetary and financial policies, China will boost financing efficiency via capital markets, by supporting domestic firms to list in Hong Kong, and promote offshore listings by qualified platform companies.”
Other measures: As part of the new measures, the government will provide tax rebates to several sectors and defer social security payments for firms hit hard by COVID-19. The government will also take steps to stabilize supply chains, expand private investment, accelerate infrastructure construction and ensure energy and food security.