China reduces taxes for large companies Read more »- Jornal de Angola

Li, who was speaking during the Boao Forum (the “Asian Davos”) on the island of Hainan, southern China, acknowledged that the country will face “small fluctuations” short-term economic, but trusted that these will be overcome mediantes expansive fiscal policies.
“This year, we adopted a new target for economic growth, between 6.5 and 7.0 per cent to ensure flexibility in our goal, because we are promoting structural reforms. In this process, small short-term fluctuations are inevitable, “he said.
Beijing is to open a transition in the economic model of the country, aiming at a greater preponderance of the services sector and the closure of heavy industry units seen as “unproductive”. For the next years, only in the steel and coal sectors were announced 1.8 million redundancies. The Prime Minister stressed that the low indebtedness of the Chinese central government – 17 percent of gross domestic product (GDP) – will allow to carry out a “proactive fiscal policy”. “In 2016, we will reduce taxes 500,000 yuan” for companies, said Li, who ruled out an increase in the tax burden in other sectors to compensate. “We have enough policy tools to ensure stable economic performance,” he said, referring to the country’s high savings rate and the development bank of the capital market. The Chinese official also ruled that these tools include a devaluation of the Chinese currency, the yuan, in order to increase the competitiveness of Chinese exports.
“No desvalorizaremos the yuan to boost exports because it does not help the companies involved to be more competitive. We are trying to focus more on the export of medium to high quality products, “he said.

More growth
The National Popular Assembly (ANP) of China approved on Wednesday, the thirteenth five-year plan of the country, which provides an annual economic growth of at least 6.5 percent. The five-year plan of China 2020 is the first since the arrival of President Xi Jinping to power and predicts that in 2020 the Chinese domestic product (GDP) is double that of 2010. After nearly two weeks, the plenary of the ANP, Chinese legislature today ended its annual meeting, giving the green light to the document. Chinese Prime Minister Li Keqiang said at a press conference after the vote, to see “more hopes than difficulties” in China’s economy and ruled out the possibility that the country will suffer a “hard landing.” Li said he was confident that the World economy meet the objectives set for this year and said that China is a “good position” to avoid financial risks. In 2015, China’s economy grew 6.9 percent, the lowest rate in 25 years and below the seven percent it had estimated. In the same period, the services sector accounted for the first time more than half of GDP, ahead of the industry and agriculture. The outlook for this year indicate an increase between 6.5 and 7.0 percent of GDP, inflation to remain around three percent and create 10 million urban jobs (after 2015 have been generated 13.12 million).
The document states that the Chinese population reaches the 1,420 million people by 2020 (currently around 1,280 million), 60 percent live in urban areas (today is 50 percent), there is no one below the threshold poverty and the average life expectancy increases by one year.
According to the document approved by ANP, Beijing will create a fund of 100 billion yuan (about 18 million) for subsidies and compensation for workers who lose their jobs in the process of industrial restructuring. The thirteenth five-year plan aims to modernize China’s industry and respond to excessive industrial production capacity in certain sectors.
China will increase the maximum ceiling of its public deficit to three percent of GDP, to boost economic growth. The document provides that the railway high-speed lines have 30,000 kilometers in 2020, compared to 19,000 today, and uniting 80 percent of large cities.
XII Five Year Plan estimates investments of 800 billion yuan (160 billion dollars) in its rail network and 1.65 billion yaun ($ 270 million) on the roads. China has the largest network of high speed trains in the world, six times higher than in Spain, the second most extensive.