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Xinhua: State Council Introduced New Policies to Rescue the Economy

Xinhua recently reported that the Chinese State Council Executive Meeting held on April 8 came up with three new policies to “rescue” the real economy of China. The policies include restricting the government fees that companies have to pay, reducing electricity prices, and lowering the natural resource tax rate on iron ore. Experts widely expected that China’s first quarter GDP growth rate would decline. The second quarter is also facing serious challenges. The State Council’s latest move is considered a much needed life-saving shot for the economy, especially the real economy. Su Jianxiang, Deputy Director of the Economic Research Center of Beijing University, suggested that these new policies will focus on pumping oxygen into the supply side of the economy. Not long ago, the State Council approved a proposal to allow the Social Security Funds to enter the stock market, which has the primary purpose of rescuing the economy on the demand side. The iron ore resource tax rate was cut by 60 percent, which surprised many experts in the industry.
Source: Xinhua, April 9, 2015