Special Report: Global Financial
Crisis
Backgrounder: A timeline of China's recent economic-stimulus
measures
A timeline of China's macro-economic
policy shifts over 30 years
BEIJING, Nov. 12 (Xinhua) -- China's government on
Wednesday announced a slew of measures, including approval of infrastructure
projects and a further rise in export rebates, in a wide-ranging attempt to
stimulate the economy and stave off the effects of the global financial crisis.
The State Council, or cabinet, approved projects with
a combined investment of more than 200 billion yuan (29 billion U.S. dollars),
designed to help boost domestic demand and offset slowing exports.
At executive meeting presided over by Premier Wen
Jiabao, State Councilors agreed to raise export rebates on more than 3,700
items-- mainly labor-intensive, mechanical and electrical products and other
items vulnerable to weakening overseas demand -- from next month, the third such
move in the second half.
The infrastructure projects included a gas pipeline
from the northwestern Ningxia Hui Autonomous Region to the southern economic
hubs of Guangzhou and Hong Kong, at an investment of 93 billion yuan.
State Councilors also approved the building of the
Guangdong Yangjiang nuclear power plant and the expansion of the Zhejiang
Qinshan nuclear power plant at a combined cost of 95.5 billion yuan.
Another 17.4 billion yuan would go to water
conservancy projects in regions of Xinjiang, Guizhou and Jiangxi and civil
airports in north China's Inner Mongolia Autonomous Region and east China's
Anhui Province.
The 300-billion-yuan reconstruction central
government fund dedicated to 51 hard-hit areas in Sichuan, Gansu and Shaanxi
provinces would provide the main financing for the May 12 quake zone.
The forestry industry, ravaged by the severe winter
weather at the start of the year and the earthquake, would receive support for
restoration by 2010. "Proper subsidies" would be given to forestry workers to
help rebuild their damaged homes.
Councilors called for "protective prices" on the
purchase of damaged bamboo and lumber and urged financial institutions to give
favorable support or write off bad loans due to disasters in the sector.
The measures followed a massive stimulus package
worth 4 trillion yuan (570 billion U.S. dollars) unveiled on Sunday.
China's economy slowed sharply in the third quarter
because of slowing exports and investment growth. Gross domestic product was up
9 percent from the same period last year, compared with 10.1 percent in the
second quarter and 10.6 percent in the first quarter.
The package would finance programs over the next two
years in 10 major areas, including affordable housing, rural infrastructure,
water, electricity, transport, the environment, technological innovation and
rebuilding after disasters, most notably the May 12earthquake.
China's 4 trillion yuan stimulus to
boost economy, domestic demand
BEIJING, Nov. 9 (Xinhua) -- China said on Sunday it will
loosen credit conditions, cut taxes and embark on a massive infrastructure
spending program in a wide-ranging effort to offset adverse global economic
conditions by boosting domestic demand.
This is a shift long advocated by analysts of the
Chinese economy and by some within the government. It comes amid indications
that economic growth, exports and various industries are slowing.
A stimulus package estimated at 4 trillion yuan
(about 570 billion U.S. dollars) will be spent over the next two years to
finance programs in 10 major areas, such as low-income housing, rural
infrastructure, water, electricity, transportation, the environment,
technological innovation and rebuilding from several disasters, most notably the
May 12 earthquake. Full story
China plans 10 major steps to spark growth as fiscal, monetary policies ease
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. Full story
China's VAT reform to shed corporate tax burden by 120 bln yuan
BEIJING, Nov. 9 (Xinhua)-- China announced on Sunday it would spread a reform of its value-added tax regime to all industries nationwide, which could cut the tax burden on enterprises by 120 billion yuan (about 17.6 billion U.S. dollars). Full story
China to stabilize global financial markets by maintaining growth
SAO PAULO, Nov. 8 (Xinhua) -- China will help stabilize international financial markets by maintaining its economic growth and expanding domestic demand, Zhou Xiaochuan, governor of China's central bank, said here Saturday.
The People's Bank of China is closely following the situation in international financial markets to make its policies on further readjustment of interest rate, he said. Full story
