China announces aggressive stimulus plan
[Update] Here are some details of the Chinese stimulus plan, as reported in Chinese news media.
The Chinese premier Wen chaired a State Council meeting on November 5, with an agenda focused on expanding domestic consumption and smooth economic growth. The meeting concluded that a flexible yet cautious macro economic policy was needed due to the threats from the increasingly serious global financial crisis. The country will focus on ten areas of development.
- Accelerate housing development for disadvantaged populations by increasing government support for low-incoming housing, accelerating redevelopment in communities of shacks, building permanent residence for nomadic population, expanding trial programs of overhauling dangerous buildings in rural areas.
- Accelerate rural infrastructure development by increasing efforts at bio-gas, safe drinking water and rural road developments, improving rural power network, accelerating major water use projects such as the south-north water transfer project, reinforcing dangerous reservoir dams, strengthening large scale irrigation systems, and expanding poverty alleviation and development efforts.
- Accelerate major infrastructure developments such as railroad, highway and airports by focusing on a number of passenger and coal transport lines and railroads in the western China, improving the highway network, building airports in central and western China, and accelerating urban power network overhaul.
- Accelerate development of medical, cultural and educational fields by strengthening medical service at community level, speeding up rural school building overhaul in central and western China, and promoting development of special education schools in those areas.
- Enhance ecological environment development by building more urban sewage and garbage treatment facilities, speeding up control and treatment of water pollution, strengthening protection of forest resources, and supporting key energy saving and emission reduction projects.
- Accelerate innovation and structural adjustment by supporting high-tech industry development, improving manufacturing technologies, and supporting development of the service sector.
- Accelerate various reconstruction projects in the areas affected by the Sichuan earthquake.
- Increase the income of urban and rural residents by raising the minimum grain purchasing prices next year, increasing various agricultural subsidies, improving social security services for low-income groups, increasing subsidies for insurances, and continuing increase the level of basic pensions provided to retirees and subsistence allowances standards for qualifying citizens.
- Implement value-added tax reform and restructuring in all industries and in all regions to encourage technical improvement and retooling in enterprises and to reduce burdens on them by 120 Billion RMB.
- Increase financial sector support to the economic growth by lifting restrictions on loans provided by commercial banks, expanding credit by reasonable scale, strengthening loan support for major projects, agricutural work, median and small enterprises, mergers and acquisitions, and cultivate consumer consumption credit growth.
There are currently no comments highlighted.