China to ease tax burdens for private enterprises -- China will take solid steps to relieve the tax burdens for private enterprises to support better development of private businesses. The burden of taxes and fees on private enterprises will be further eased, according to a guideline recently released by the State Administration of Taxation (SAT) on supporting the private sector. The guideline outlined 26 detailed measures to facilitate the development of private businesses, including advancing substantial tax cuts, especially the reduction of value-added taxes, working on tax exemptions for micro and small firms as well as technology startups, and promoting the reduction of nominal rates for social security contributions. Measures will also be taken to address the difficulty and high costs of financing for private firms, simplify tax payment procedures and level the playing field for private businesses.
China tightens ban on solid waste imports -- The Chinese government has introduced a tightened ban on solid waste imports, according to an official document. Effective on Dec. 31, 2018, 32 types of solid waste will be banned from imports, according to the document released by the Ministry of Ecology and Environment, the Ministry of Commerce, the National Development and Reform Commission, and the General Administration of Customs. The newly-added products include hardware, ships, auto parts, waste and scrap of stainless steel, titanium and wood. China's imports of solid waste slumped further in the first 10 months of 2018 as the government stepped up enforcement on a ban on solid waste imports.
China, Russia vow to strengthen cooperation in Far East -- China and Russia will promote their cooperation in Russia's Far East, according to a Far East cooperation development plan compiled jointly by China's Ministry of Commerce, China Development Bank and Ministry for the Development of the Russian Far East. According to the plan, China and Russia will further strengthen economic and trade cooperation in seven priority fields such as natural gas, petrochemical industries, solid minerals, transportation and logistics, agriculture, forestry, aquaculture and tourism in the Russian Far East. The development plan comprehensively detailed collaborative advantages that the Russian Far East boasts for Chinese investors in energy resources, agriculture, forestry, fisheries, transportation, aviation and shipbuilding.
CBIRC likely to unveil guideline this week to support dev of private economy, official -- China Banking and Insurance Regulatory Commission (CBIRC) is compiling a guideline this week to support development of the private economy, which is likely to be submitted to the State Council for approval this week, according to Zhou Liang, vice chairman of the CBIRC, at the 9th Caixin Summit on November 19. Banks and insurers are required to take effective measures to make financing less difficult and less expensive for small and micro businesses, said Zhou. Zhou pointed out that the insurance asset management companies are allowed to set up special products to resolve liquidity risk of the listed companies and private enterprises due to the stock pledge. The banks are urged to reform their internal performance appraisal system to establish a due diligence fault correction and fault tolerance mechanism.
China's Sichuan unveils policies to promote dev. of private economy -- Southwest China's Sichuan Province has recently released policies to promote development of the private economy, aiming to increase proportion of the value added of its private economy to the province's GDP to 60 percent by 2022. The province will take measures to stimulate the vitality of private investment, reduce the operating costs of private enterprises, alleviate their difficulty of getting financing, and help improve their competitiveness, according to relevant official of the province's Economic and Information Department. Sichuan will endeavor to create a fair environment for the private enterprises. It will vigorously clean up the unreasonable restrictions on private capital access, build a regular mechanism of project promotion to the private capital, and put in place the fair competition review system.
China's top economic planner denies proposing tax cut for car purchases -- China's top economic planner denied proposing to reduce car purchase tax by half on November 15 while noting that there remains huge room for development for the auto industry. "We have not studied or made the proposal of reducing the auto purchase tax to 5 percent," said Meng Wei, spokesperson for the National Development and Reform Commission, at a press conference. While softening car sales brought auto firms under pressure, it can also force companies to increase competitiveness, eliminate backward production capacity and drive industrial upgrading, according to Meng.
Shanghai mayor pledges support for private businesses -- Shanghai mayor Ying Yong has pledged support for private enterprises, responding to calls from the central authorities to beef up support for the private sector. Private enterprises are an important driving force of economic and social development in the country's financial and business center, Ying told Xinhua in an interview. Private companies contribute to one-fourth of gross domestic product, one-fifth of foreign trade, one-third of tax revenue and over 70 percent of new jobs in Shanghai, he said. Private firms are also a major driver behind technological innovation in Shanghai as over 90 percent of tech companies are privately owned, Ying said.
China to expand mixed ownership reform of SOEs -- More pilot state-owned enterprises (SOE) will carry out mixed ownership reform in key areas, according to an official from the state asset authority. "A number of centrally and locally administered SOEs with a wider range of business categories will be chosen to enrich the ongoing mixed ownership reform," said Weng Jieming, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), told China Daily. From 2013 to 2017, the private sector invested 1.1 trillion yuan (about 158 billion U.S. dollars) and 500 billion yuan respectively to take part in mixed ownership reform of central and provincial SOEs, according to SASAC.
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