Special Report: Global Financial Crisis
BEIJING, Nov. 9 (Xinhua) -- China will take 10 major
steps to stimulate domestic consumption and growth as it turns to an "active"
fiscal policy and "moderately easy" monetary policy, an executive meeting of the
State Council said on Sunday.
Here are the 10 major steps:
-- Housing: Building more affordable and low-rent
housing and speeding the clearing of slums. A pilot program to rebuild rural
housing will expand. Nomads will be encouraged to settle down.
-- Rural infrastructure: Speeding up rural
infrastructure construction. Roads and power grids in the countryside will be
improved, and efforts will be stepped up to spread the use of methane and to
ensure drinking water safety. This part of the plan also involves expediting the
North-South water diversion project. Risky reservoirs will be reinforced. Water
conservation in large-scale irrigation areas will be strengthened. Poverty
relief efforts will be increased.
-- Transportation: Accelerating the expansion of the
transport network. That includes more dedicated passenger rail links and coal
routes. Trunk railways will be extended and more airports will be built in
western areas. Urban power grids will be upgraded.
-- Health and education: Beefing up the health and
medical service by improving the grass roots medical system. Accelerating the
development of the cultural and education sectors and junior high school
construction in rural western and central areas. More special education and
-- Environment: Improving environmental protection by
enhancing the construction of sewage and rubbish treatment facilities and
preventing water pollution in key areas. Accelerating green belt and natural
forest planting programs. Increasing support for energy conservation and
-- Industry: Enhancing innovation and industrial
restructuring and supporting the development of the high-tech and service
-- Disaster rebuilding: Speeding reconstruction in
the areas hit by the May 12 earthquake.
-- Incomes: Raising average incomes in rural and
urban areas. Raising next year's minimum grain purchase and farm subsidies.
Increasing subsidies for low-income urban residents. Increasing pension funds
for enterprise employees and allowances for those receiving special services.
-- Taxes: Extending reforms in value-added tax rules
to all industries, which could cut the tax corporate burden by 120 billion yuan
(about 17.6 billion U.S. dollars). Technological upgrading will be encouraged.
-- Finance: Enhancing financial support to maintain
economic growth. Removing loan quotas on commercial lenders. Appropriately
increasing bank credit for priority projects, rural areas, smaller enterprises,
technical innovation and industrial rationalization through mergers and
These 10 moves are expected to have positive effects
on cement, iron and steel producers amid a boom in infrastructure investment.
Commercial lenders will benefit as loan ceilings are abolished, and medium-sized
and small companies are likely to benefit from preferential policies.