Local governments in China have responded to the State Council’s call to step up efforts to help the nation achieve its overall economic growth target for this year, China Business News reported Friday.
Premier Li Keqiang on June 6 held discussions with government chiefs from eight provinces and municipalities, including Guangdong, Zhejiang, Hebei and Shanxi, after their growth slowed due to weak external and domestic demand.
Taking note of the slower growth, Li urged the local officials to stabilize their economies, the report said.
While there are some challenges, Li said he is confident that China can achieve the 7.5 percent economic growth target this year, and that there is no risk of hard landing.
Local governments have launched their own “mini stimulus” measures recently, aiming to boost investments, speed up industrial upgrades, reduce enterprises’ burden and enhance exports, the paper said.
For instance, Guangdong, the export-oriented province in southern China, has unveiled a 100 billion yuan stimulus plan to stabilize growth. The initiatives include a 38 billion yuan tax relief for enterprises, the report said.
Hebei province has issued policies to support development of emerging industries such as environmental protection and pharmaceuticals as well as equipment manufacturing, while reducing the reliance on energy-intensive sectors like coal, steel and cement, according to the report.
Analysts were quoted as saying that China’s economic growth is expected to stabilize in the second and third quarters on the back of the local governments’ stimulus and the central government’s drive of urbanization, infrastructure construction and support for small companies.
“It is definitely no problem to reach the full-year growth target of7.5 percent,” an analyst said.
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