China unveils detailed stimulus policies to support virus-hit economy

China’s cabinet on Tuesday unveiled a package of 33 measures covering fiscal, financial, investment and industrial policies to revive a pandemic-ravaged economy, saying it will inspect how provincial governments implement them.

China’s cabinet on Tuesday unveiled a package of 33 measures covering fiscal, financial, investment and industrial policies to revive a pandemic-ravaged economy, saying it will inspect how provincial governments implement them.

The stimulus package, which was flagged by China’s State Council at a routine meeting last week, underscores Beijing’s shift to growth after draconian COVID-19 control measures hit the economy and threatened Beijing’s 5.5% growth target for the year.

To revive investment and consumption, China will promote healthy development of platform companies, which are expected to play a role in stabilizing jobs, according to the measures.

Platform companies are also encouraged to make breakthroughs in areas such as cloud computing, artificial intelligence and blockchain technologies, the State Council said, the latest sign that the China eases repression of the sector.

China will also increase private investment, speed up infrastructure construction and boost purchases of cars and home appliances to stabilize investment, according to the measures.

In terms of monetary and financial policies, China will enhance the efficiency of financing through capital markets, helping domestic companies register in Hong Kong and promoting overseas listings by qualified platform companies.

The State Council also pledged to further reduce real borrowing costs and strengthen financial support for infrastructure and major projects.

To bolster fiscal support for the economy, China will accelerate the issuance of special bonds by local governments and cash support for companies that hire college graduates.

Authorities will also provide tax credit refunds to more sectors and allow businesses in sectors hit hard by COVID-19 restrictions to defer social security payments, the State Council said.

Other measures include policies to ensure energy and food security and stabilize supply chains.

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