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China to launch new round of local government notes

(ATF) – China plans to increase the number and the scale of local government special bond sales to help struggling companies, according to state media. 

New funds may also be issued for social security payments, Surgeing reported. The funding is also seen as an effort to stem social unrest.

The heavy hitters in China’s fight against Covid-19 met to outline social as well as economic planning as the virus spreads. Top officials in charge of the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance (MOF), the Ministry of Human Resources and Social Security, the Ministry of Commerce and the People’s Bank of China were among attendees.

Ou Wenhan, assistant minister in the MOF, said the main aim of the new funding was to hedge against the negative impact of the epidemic on the economy.

The MOF outlined measures such as new tax policies for Covid-19-affected industries, including transportation, catering, accommodation and tourism.

Value-added tax has also been temporarily scrapped on industries that are vital to people’s daily lives, including bus services and express deliveries, insurance premiums, medical insurance premiums. 

A policy of reducing the social security premium rate introduced last year is under consideration.

The Ministry of Human Resources and Social Security and other departments have introduced policies to support enterprises to stabilize existing employment positions through multiple channels, such as job security repayment and vocational training subsidies, in a bid to limit layoffs.  

Small enterprises and individuals affected by the epidemic have some positive financial assistance in the works to prevent social unrest, with details of the plans expected later.

Chris Gill

With over 30 years reporting on China, Gill offers a daily digest of what is happening in the PRC.


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