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A breakdown of the 2019 government report [Copy link] 中文

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Post time 2019-3-5 16:56:32 |Display all floors

This year's work report from the Chinese premier delivered it in spades.  

While the headlines are likely to scream about China's lower GDP growth target of 6 to 6.5 percent, it's the details that separate this report from others.  

Three things stand out.

1.        Jobs first.

If 40 pages of report didn't provide a particular sense of priority in the past, this year, you got the message loud and clear. The target is over 11 million new jobs, lower than 2018's actually achieved 13.6 million, but considering the pressures the economy is under, it's still an ambitious goal.  

Companies hiring rural poor and long-term unemployed will get tax deductions for three years.

There will be an investment of 100 billion yuan to train 15 million people and one million vocational training positions will be added.

2.        The government will slim down so the private sector can bulk up

To create more jobs, taxes are being cut, the deficit to GDP target gets hiked up to 2.8 percent from 2.6 percent in 2018.

“Every requirement for government approval that should be canceled will be cancelled.” That sentence must be like music to businesspeople's ears. This slimming down means more approvals will be online, or processed remotely.

If you are a public servant or a state company employee, be prepared to work harder and smarter. The phrase “belt-tightening” is used, followed by actual targets: State-owned enterprises need to cut general expenses by five percent, overseas visits and hospitality and the like by three percent, because they need to turn in more profits to fund the increased government spending.  

China will cut bureaucracy with fewer meetings and documents, and the State Council will cut the number of documents issued by over a third.

Manufacturing and smaller business, the biggest creators of China's jobs, can get ready for simpler taxes and two trillion yuan in tax and fee cuts.  

VAT for manufacturing and SMEs will be lowered to 13 percent from 16 percent.

Social insurance contributions, such as aged care, will be reduced to 16 percent.

Electricity prices for business will be cut by 10 percent.

Broadband service rates for SMEs to be cut by 15 percent.

Mobile Internet costs to be cut by more than 20 percent.

The VAT threshold for innovative startups to 100,000 yuan of monthly sales will be tripled.

Targeted RRR cuts for smaller banks so they lend to smaller companies.  

Large banks' lending to SME's to go up by 30 percent.

Obviously investors in China's large banks, state power companies and telco's will see this as a negative to earnings, but therein lies the Chinese economy's strength and weakness, the ability to deploy massive state resources for the macro good.

3.        Better education and healthcare

Education and healthcare often get sidelined, but given the past year's newsmaking events in childcare, vaccination and schooling, plus the mandate to get people spending, as opposed to saving for a rainy day, this year there's a concerted effort to highlight these pain points for Chinese residents.  

There will be increased support for private child care and kindergartens.

Higher government subsidies for resident medical insurance.

Reimbursements for serious disease hiked from 50 to 60 percent.

On the spot settlements of migrant population's medical bills, in any locality.

This year's work report has a razor sharp focus on curing “big government diseases”, and enough specific numbers to have businesses and consumers' top needs covered, with much less focus on grandiose projects. In fact, it specifically promises no deluge of stimulus that creates longer-term problems.  


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Post time 2019-3-7 23:47:56 |Display all floors
This post was edited by GhostBuster at 2019-3-7 23:49


GOODNESS!

Please polish your English! Avoid the word, 'breakdown'. Sounds like the system has big problems. It is not commercial to attract full attention.

Suggest, 'itemized' to make better impression!

Alternatively, the title could be, 'Details of government report for year 2019'.
Please raise your English proficiency!

NO MORE BREAKDOWN!




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