U.S. tightens exports to China’s chipmaker SMIC, citing risk of military use
China will launch a more active fiscal policy as its economy faces increasing downward pressure, Minister of Finance Liu Kun wrote in an article published on the People’s Daily on Thursday.
“At present, China’s economic and social development is still facing great uncertainties, and downward pressure on the economy is still increasing,” he said. “A more active fiscal policy is a practical need to hedge the downward pressure of the economy.”
Liu said China will increase the scale of its fiscal deficit to provide more subsidies and tax reductions to the business sector. He said the government would also boost its investment in infrastructure in order to offset the negative impact of the Covid-19 pandemic on the economy.
He added that the government would invest more in projects that can promote advanced manufacturing or improve the supply and demand chains.
China also will implement policies to support the recovery of pig production and guarantee the supply of food and important agricultural products, he said.
Liu said the central government will allocate more resources to the provinces and cities that were hit by the epidemic. At the same time, government officials will further reduce their expenses, he said. The central government will continue to monitor and manage the risk of the local government debts.
Economists have expected that the central government would announce a substantial new stimulus package before or during the “two sessions,” which refer to the annual meetings of the Chinese People’s Political Consultative Conference and the National People’s Congress (NPC), which will start on May 21 and 22, respectively.
A total of 252 new public-private-partnership (PPP) projects have been proposed in China between January and April this year, according to the National Development and Reform Commission (NDRC). Of them, 102 have been signed by the parties involved, it said. In April, the number of newly-proposed PPP projects was 102.
Most new PPP projects are based in Hunan, Jiangxi and Shaanxi provinces. These projects will focus on agriculture, forestry, water conservation, social welfare, transportation, environmental protection and other industries, according to the NDRC.
China Southern Power Grid Corp, a state-owned company, will build the first large-scale engineering vehicle charging station in China, according to the State-owned Assets Supervision and Administration Commission (SASAC). The station, which will be based in Shenzhen, can serve up to 600 electric vehicles within an area of 20 kilometers.
As of the end of April, China Southern Power Grid started and continues to build 520 small-and-medium-sized quick charging stations and 5,239 charging piles with a total capacity of more than 280,000 kilowatts. The total investment will be more than 738 million yuan (US$105 million).
The company will spend 1.2 billion yuan to build new facilities this year, including 10,000 new charging piles and port shore power facilities. In the coming five years, the company will build 380,000 charging piles for 25.1 billion yuan.
China Minsheng Bank and the Shenzhen Stock Exchange has signed a strategic cooperation framework agreement. Wu Xinjun, the president of Minsheng Bank’s Shenzhen branch, said the bank will provide one-stop financing services for startups from their incubation periods to listings on the stock exchange.
Minsheng Bank of China said it had established an investment alliance with more than 100 private equity companies across the country and had contacted with more than 700 scientific and technological enterprises. The bank said it would provide a pipeline of listing candidates to the Shenzhen Stock Exchange.
The story was written by Huang Wanyi and Yuan Tianyi and first published at ATimesCN.com.