State Council Still Focused on Lowering Business Costs

Reuters: China eyes broad business cost cuts to underpin growth
Authorities aim to cut financing and labour costs, energy and logistics costs as well as reduce the annual tax burden for firms over the next few years, according to guidance published on a government website on Monday.

...Companies have been complaining about rising wages and land prices, in addition to tighter environmental and safety regulations, and some foreign manufacturers have moved to neighbouring countries to cut costs.
Demographics are impossible to solve in the short-run, but like rising land prices, are a direct result of government policy. Tax and regulatory cuts can have a long-term positive impact, but in the short-run, the economy's biggest problem is government intervention, which leads to reactionary policies. The boom-bust cycle in the real estate market is the best example of this endless policy trap.

iFeng: 国务院放大招!实体经济企业要减负了

No comments:

Post a Comment