China is confident of maintaining steady industrial growth this year despite big pressures on the sector, with tax cuts and broad policy support likely to help stabilize the situation, the nation’s industry minister said on Monday.
“Looking forward to 2020, industrial development faces many difficulties and risks,” Minister of Industry and Information Technology Miao Wei said in Beijing, Reuters reports. “The pressure on stabilizing industrial growth is still big.”
But the government will be able to “ensure the smooth operation of the industrial economy” this year as big tax cuts and policy efforts to ease corporate funding strains have started to gain traction, the minister said.
Beijing will continue to implement tax and fee reduction measures this year, focusing on the manufacturing sector, Miao said without giving details.
The government has said its tax and fee cuts exceeded 2 trillion yuan (US$292.03 billion) in 2019.
China will increase investment in research and development and use other policy incentives to help promote innovations and upgrade the manufacturing sector, Miao said.
China welcomes foreign firms to participate in the building of its 5G networks and opposes politicizing the technology issue, he said, in an apparent criticism of Washington’s moves against Chinese telecoms equipment giant Huawei.
The comments came after data showed last Friday that China’s economic growth cooled to a near 30-year low of 6.1 percent in 2019 amid a bruising trade war with the United States.
Separately, Miao said China is also studying postponing the reduction of subsidies for new energy vehicles.
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