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Challenges tackled with financial innovation

By ZHANG YUE | China Daily | Updated: 2021-12-24 10:39
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Students from a vocational school in Handan, Hebei province, livestream local products during an e-commerce course. [Photo by Zhao Chenguang/For China Daily]

Tax and fee cuts ease cost burdens, optimize growth structure

China's economic growth has faced fresh challenges, particularly since the third quarter of this year, with rising commodity costs and sporadic locally detected cases of COVID-19 affecting recovery in the services sector.

Experts say there are two major ways to cope with any downward pressure-further fueling debt for investment, or scaling up tax and fee cuts for businesses to stimulate growth and unleash potential.

In view of COVID-19, particularly in recent weeks and months, China is leaning more toward the latter solution. Rather than resorting to a high fiscal deficit, the government has been seeking financial innovation with a more effective spending mechanism and deeper tax and fee cuts.

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