China’s Finance Ministry Promotes Tax Deductions And Spending On Domestic Technology

China’s Finance Ministry Promotes Tax Deductions And Spending On Domestic Technology

China will reduce fees and taxes on a bigger level this year, while concentrating on assisting the country’s technological development, according to Liu Kun, theFinance Minister, on Tuesday.

As tensions with the US have risen, China has been cut off from key technology suppliers, prompting Beijing to implement policies to support homegrown technology.

Finance ministry officials also emphasized more assistance to small businesses, timely pension benefits to retirees, and larger transmit of payments from the central to local governments during Tuesday’s press conference.

BEIJING (Xinhua) — China will reduce taxes and fees on a bigger scale in this year, while concentrating on empowering the country’s technological development, according to Finance Minister Liu Kun on Tuesday.

After recovering from the initial panic of the coronavirus pandemic in initial 2020, China’s economic growth slowed. This year, analysts anticipate more monetary and fiscal policy support.

The very first fiscal policy assignment is to reduce taxes and fees on a larger scale than last year, Liu said at a media briefing, without providing a specific figure. In 2021, these cutbacks totaled 1.1 trillion yuan ($173.5 billion).

The second point raised by Liu was support for technical “self-sufficiency” and determined by measuring supply chains. National spending on science and technology will increase by 7.2 percent to 970 billion yuan in 2021, he said, noting that the funds will help the development of chips and e – mobility.

As tensions with the US have risen, China has been cut off from key technology suppliers, prompting Beijing to implement policies that support homegrown technology. The central administration introduced last year that it planned to increase R&D spending by more than 7% each year between 2021 and 2025.

“The Ministry of Finance remains committed to making sure the national growth strategy of science – technical self-improvement and self-reliance,” Vice-minister Yu Weipingshared with media at the same session, in response to questions about the ministry’s work in technology. As per a CNBC translation of the Chinese, this is the case.

Yu stated that the central government increased funding on basic research by 15.3 percent last year to an unspecified amount, mainly to support work at state-run institutions.

He stated that in the first three quarters of 2021, companies doing Business got 1.3 trillion yuan in extra deductions for R&Dexpenditures, as well as over 330 billion yuanas tax cuts.