China confident of stabilising industrial growth: Minister , Latest Business News - The New Paper

China confident of stabilising industrial growth: Minister

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BEIJING: China is confident of maintaining steady industrial growth this year despite big pressures on the sector, underpinned by tax cuts and broad policy support, its Industry and Information Technology Minister Miao Wei said yesterday.

The country's industrial output topped expectations last month by growing 6.9 per cent from a year earlier, the strongest pace in nine months, bringing full-year 2019 expansion to 5.7 per cent - within the government's target of 5.5 per cent to 6 per cent.

Growth in the world's second largest economy cooled to a near 30-year low of 6.1 per cent last year amid a bruising trade war with the US, and more stimulus is expected this year as Beijing tries to boost sluggish domestic demand.


"Looking forward to 2020, industrial development faces many difficulties and risks," Mr Miao told a news conference. "The pressure on stabilising industrial growth is still big."

But the government will be able to "ensure the smooth operation of the industrial economy" this year as big tax cuts and policy efforts to ease corporate funding strains have started to gain traction, he said.

Beijing will continue to implement tax and fee reduction measures, focusing on the manufacturing sector, Mr Miao said without giving details.

The government has said its tax and fee cuts exceeded 2 trillion yuan (S$393 billion) last year. China will increase investment in research and development and use other policy incentives to promote innovations and upgrade the manufacturing sector, Mr Miao added. - REUTERS