Website announcement: Honesty is the foundation, the market is always changing, and honesty is never changing.
Home Page About Us Its business News Jin De style Partnership Human Resource Contact Us
News Information
Contact us
Telephone:0537-7925728 Fax:0537-7925728 Zip code:272100 Address: Xinglongzhuang Town Industrial Park, Yanzhou District, Jining City, Shandong Province

News Information

China's Economic Growth Stable and Greater Tax Reduction and Fee Reduction Policy to Be Promulgated this Year

Release time:2018-10-16 10:43 click:second

How about the first three quarters of China's economy?

The result is excellent as a whole. However, in order to cope with the heavy downward pressure of the future economy, we need to speed up the reform, implement and promulgate various measures.

Reporters learned that since the end of September, including the Bank of China, the Bank of Communications, the Academy of Social Sciences, the World Bank and the International Monetary Fund, have issued the latest economic forecasts. Generally speaking, China's economic growth is still stable this year. It is no problem to achieve the target of more than 6.5% for the whole year. The growth rate in the first three quarters is expected to be about 6.7%.

Next year, the downward pressure of economic growth will be great. The World Bank and the International Monetary Fund have already reduced the growth rate of China's economy next year. The International Monetary Fund (IMF) reported on October 9 that China's economy is expected to grow at 6.6% in 2018, unchanged from July's forecast, and 6.2% in 2019, down 0.2 percentage points from July's forecast.

Some research institutes believe that more reform is needed to hedge the downward pressure of the economy. Feng Ming, Ph.D., School of Finance and Economics, Chinese Academy of Social Sciences, pointed out that China needs to substantially reduce enterprise income tax rate, value-added tax rate, maximum marginal personal income tax rate and social security premium rate, among which the social security premium rate needs to be reduced by 10-15 percentage points.

Feng Ming believes that the actual operation of China's economy is better than that in 2015. The key is to release the existing potential. "Potential, such as pension, education and so on, need to lower the threshold of access, many needs have been suppressed." He said at a forum on October 9.

Overall stability of industrial and service development

The National Bureau of Statistics will announce the economic growth in the first three quarters next Friday (October 19). At present, major research institutions have issued forecasts that the economic growth in the first three quarters of this year is relatively stable, and the annual growth rate will also maintain a good rate.

Among them, the International Institute of Bank of China, the Academy of Finance and Economics of the Chinese Academy of Social Sciences, the Quantity Institute of the Chinese Academy of Social Sciences and the Financial Research Center of the Bank of Communications all believe that GDP grew by about 6.6% in the third quarter of this year, while it is expected to grow by 6.5% - 6.7% in the fourth quarter and 6.7% in the first three quarters. In 2017, the annual economic growth rate is between 6.6% and 6.7%, and there is no doubt that the target of 6.5% or more will be achieved.

Lou Feng, director of the Economic System Analysis Department of the Institute of Quantity of the Chinese Academy of Social Sciences, pointed out that the overall economic growth rate is stable at present. Despite the great changes in the international situation, some countries have implemented trade protectionism, but the impact on China's economy is small, because now enterprises are rushing to export as soon as possible.

"The impact of changes in external demand on China is still medium-term and long-term, and the short-term impact on China's economy is limited." Lou Feng said.

From January to August, China's imports and exports totaled 19429.7 billion yuan, an increase of 9.1% over the same period last year. Among them, exports increased by 5.4% to 10337.6 billion yuan, while imports increased by 13.7% to 9092.1 billion yuan, and net exports remained positive.

At the same time, the overall development of industry and services is stable.

In September 2018, China's Manufacturing Purchasing Manager Index (PMI) was 50.8%, down 0.5 percentage points from last month, while China's non-manufacturing business activity index was 54.9%, up 0.7 percentage points from last month, all in the expansion range.

China's gross domestic product (GDP) is accounted for by production method (aggregated by industrial accounting). The above representatives reflect the good PMI and non-manufacturing business activity index of industrial and service development, which indicates that China's economy grew steadily from January to September.

Ning Jizhao, Director-General of the National Bureau of Statistics and Vice-Director of the National Development and Reform Commission, also pointed out recently that since this year, China's economy has been running smoothly and steadily, laying a solid foundation for fulfilling the expected objectives of economic and social development throughout the year.

Looking at China's economy, we should not only look at the fluctuations of individual months and indicators, but also at the overall situation and the long-term. Some data fluctuations, on the whole, still fall within the scope of normal fluctuations.

Greater Tax Reduction and Fee Reduction Policy to Be Promulgated

However, the downward pressure of China's economy is increasing, mainly reflected in the slow growth of investment and consumption, and the huge uncertainty of external demand.

To this end, recent major institutions have judged that the downward pressure of economic growth next year is great, and new measures are needed.

The International Monetary Fund released its forecast on October 9 that China's economic growth in 2019 was 6.2%, down 0.2 percentage points from July's forecast. The International Monetary Fund estimates that growth forecasts for 2019 have been cut by 2.5% and 0.2 percentage points from July's estimates, given recent U.S. trade measures, including tariffs on $200 billion of goods imported from China.

In response to this situation, Feng Ming, Ph.D., School of Finance and Economics, Chinese Academy of Social Sciences, pointed out that there are five major risks in China's economy at present, including the impact of trade protectionism on the economy in some countries, and the real economic difficulties, especially in terms of financing costs and high labor costs. In addition, the downward pressure of investment is great, and the operating pressure of small and medium-sized enterprises and private enterprises is great. Finally, there are signs of a slowdown in consumption and a slowdown in the economies of coastal developed provinces.

Feng Ming's suggestion is that to speed up the industrialization of scientific and technological achievements, break down barriers in medical and educational industries, and implement greater tax reduction measures, including VAT rate, enterprise income tax rate and social security rate, the marginal tax rate of personal income should be significantly reduced. The highest progressive rate of personal income tax is 45%, which is unfavorable to China's long-term development and needs to be significantly reduced. In addition, the social security premium rate needs to be reduced by 10-15 percentage points. The VAT rate can be reduced by 1-2 percentage points.

Reporters learned that the Ministry of Finance, the Ministry of Human Resources and Social Security and other departments are speeding up the study of new reform measures, including reducing social security premiums, further substantial tax cuts and so on.

However, the key to China is to speed up the implementation of reform measures. Many reform measures adopted by the Central Deepening Reform Group have not yet been implemented.