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Challenges tackled with financial innovation

By ZHANG YUE | China Daily | Updated: 2021-12-24 10:39
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A plastic packaging assembly line is examined at a small factory in Lianyungang, Jiangsu province. [Photo by Geng Yuhe/For China Daily]

Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said the sustained tax and fee cuts show China's strong resolve to pursue high-quality growth.

The country has made strenuous structural adjustment efforts in pursuit of such expansion, he said.

These efforts were planned before COVID-19 emerged, but there are numerous challenges, and the lingering impact of the pandemic over the past two years adds to growth difficulties, Gu added. Cutting taxes and fees is among the measures taken to tackle such pressure.

"Tax and fee cuts are not only about alleviating the cost burden for businesses, but are also aimed at optimizing the country's growth structure. They allow the government to lend more support to businesses in certain fields that are critical for high-quality growth, such as poverty alleviation and technological innovation," Gu said.

"Reducing costs for these businesses will better bring out their potential, and at the same time, avoid increased fiscal spending or hurting the country's economic structure."

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