China steps up to boost economy, employment

China will take solid steps to implement supportive measures for enterprises to help them through challenges, and boost employment for college graduates, according to an executive meeting of the State Council.

The meeting, presided over by Premier Li Keqiang, noted that the country has rolled out a series of policies and measures to benefit enterprises since the beginning of the year to support epidemic control, burden-easing for firms and work resumption.

Solid implementation of the policies should be guaranteed, said the meeting, including a series of tax cuts which would ease the burden for firms by 1.6 trillion yuan (US$227.25 billion), and 1.29 trillion yuan of local government special bond quotas which the country has assigned ahead of schedule.

China has offered 3.55 trillion yuan of low-cost capital to financial institutions via reserve requirement ratio cuts, re-lending and re-discount quotas, according to the meeting.

Multiple steps should be taken to further enhance the implementation of positive fiscal policies, increase financial support for the real economy and small- and medium-sized firms, and ease the cost pressure for firms of the manufacturing and service industries, the meeting noted.

The meeting also decided to take effective measures to boost employment for college graduates, whose job outlook looks grim due to the impact of the COVID-19 epidemic.

To promote the development of new business models and flexible employment, steps will be taken to strengthen guaranteed loans for start-ups and advance mass entrepreneurship and innovation.

Employment services should be enhanced, with special support policies introduced to facilitate the employment of graduates in Hubei Province, the region hardest hit by the epidemic, according to the meeting.

The renovation of old urban residential areas forms an important measure to improve people’s livelihood and expand domestic demand, the meeting noted.

China has planned to renovate over 39,000 old urban residential communities nationwide this year, which was estimated to benefit about 7 million households, aiming to improve public services such as elderly care, child care and medical care in communities.