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China News: China will not Consider Large Stimulus Package

China News recently reported that Chinese Minister of the Treasury Lou Jiwei disclosed that China was not planning on any large scale stimulus package to boost the economy. Lou made the comment at the recent G20 Summit that took place in Moscow. Lou said that the Chinese job market is still healthy, although economic growth has been slowing down. He expressed that the Chinese government would rather rely on structural reforms to address the growth issue. Lou also mentioned three key focus points in the near term: (1) Reduce government control over the marketplace – over 165 government approval requirements were removed in the past several months; (2) Convert all current tax forms to Value-Added Tax (VAT) in the entire services industry in the next two years to speed up the growth of the services industry; (3) Try to achieve a balanced budget and cut government spending by five percent.
Source: China News, July 21, 2013