Action plan to achieve targeted economic growth

Shanghai has launched 32 measures to boost confidence, expand demand, stabilize growth and promote development.

The coronavirus resurgence last year caused an unprecedented impact on Shanghai's economy. In response, the city has formulated and carried out three rounds of bailout and pro-growth policies.

As the current epidemic prevention and control has entered a new stage with the foundation of sustained economic recovery still not solid, the city still needs to make strenuous efforts this year to achieve the targeted economic growth of 5.5 percent, said Wu Qing, executive vice mayor of Shanghai.

To this end, a total of ten actions, with 32 measures, were proposed in an action plan to promote high-quality development, based on the earlier rounds of bailout policies in 2022.

The action plan focuses on putting forth efforts in three aspects:

• Stabilizing expectations and raising confidence;
• Phasing bailout measures to ease enterprises' difficulties;
  
• Pushing ahead high-quality development.
  

For instance, to more forcefully support the development of enterprises, it proposed two actions, respectively on bailing companies out and helping them stabilize and expand employment.

The city will fully implement preferential policies on taxes and fees:

• Reducing and exempting value-added tax (VAT) for small-scale taxpayers;
• Refunding all due VAT credits to advanced manufacturing enterprises on a monthly basis;
• Exempting the vehicle purchase tax for new-energy vehicles;
• Reducing 50 percent of the over-quota water charges for non-resident users in the progressive pricing system.

It will also carry out debt repayment extension and loan renewal services for micro and small enterprises temporarily distressed by the epidemic, and give loan subsidies for small and medium-sized enterprises.

To support enterprises to stabilize and expand employment, the city will give a one-time employment subsidy of 2,000 yuan (US$296) per person to the qualified employers who recruit those registered as unemployed for more than three months or 2023 college graduates in the city.

Meanwhile, five actions were proposed to expand demand and strengthen supply with more practical measures.

On foreign investment, as an example, the city will take action to stabilize the stock, expand the increment, and improve the quality of foreign investment.

Specifically, this action include three measures: to make greater efforts to attract and utilize foreign investment, to constantly enhance the headquarters-based economy, and to strengthen the services for major foreign investment projects.

In the action to boost consumption, it highlights the automobile, home appliances and other bulk consumption. Individual consumers who purchase sole electric cars before the end of June this year will be given 10,000 yuan of financial subsidies per vehicle. While for the purchase of green smart home appliances there will be a one-time subsidy of 10 percent of the payment amount (up to 1,000 yuan).

To offer solid support and services at a higher level there are three actions: focusing on creating an international first-class business environment, strengthening services and security for factors of production, and giving full play to the leading role of key areas such as the Pudong New Area, Lingang Special Area of the pilot free trade zone and Hongqiao International Open Hub.

The full action plan can be found on the official website of the government.

It will come into force from February 1, 2023, and remain valid until December 31, 2023, except for the detailed actions with specific implementation periods.