Photo: iStock
The report suggests that current financial support and tax reduction policies should focus on crowding out ineffective and inefficient investments. Photo: iStock

How to shift the economy to high-quality development has become the major focus of the Chinese government in 2018, reported.

“High-quality development” is the new keyword in the latest Government Work Report released by Premier Li Keqiang. The term has been mentioned six times.

Setting the GDP growth target at around 6.5% indicates a development-oriented direction, rather than pursuing rapid growth, the report said.

While taxes and fee reductions remain a concern, it is apparent the 2.38-trillion-yuan budget deficit this year has provided room for substantial cuts, so as to offset the decreased fiscal revenue.

In accordance with the State Council estimates, the six tax cuts throughout the year have released more than 800 billion yuan of tax burdens on enterprises, along with more than 300 billion yuan of fee reductions.