Premier Li Keqiang said in his opening speech at the 2018 Tianjin Summer Davos Forum on September 19 that the Chinese government is studying policies to significantly reduce the tax burden on companies, and treats Chinese and foreign companies registered in China equally.
Li Keqiang said that to be more active in a proactive fiscal policy, it is necessary to make greater efforts to reduce the burden on enterprises and stimulate market vitality by reducing taxes and fees. Not only must we resolutely implement the measures to reduce taxes and fees that have been introduced, but also study policies to significantly reduce the tax burden on enterprises.
Li Keqiang said that the individual tax reform should make the people feel that the tax burden has been reduced and real income has increased. Consumption has become the main driving force of China's economic growth. It is necessary to further increase the income of the masses through multiple channels and continue to enhance their consumption capacity. The new personal income tax law is about to be implemented, and for the first time, 6 special additional deductions for individuals in children's education, continuing education, serious illness medical treatment, ordinary housing loan interest, housing rent, and elderly care expenses will be introduced. The purpose is just one: to allow more people to benefit from the tax reform in a fairer way.
When talking about the "private economy", Li Keqiang reiterated that China will unswervingly adhere to the "two unswervingly", further implement and improve policies and measures to support the development of the private economy, and resolutely remove various unreasonable obstacles hindering the development of the private economy. For the government's commitment to relax the access areas of private enterprises, it is necessary to intensify efforts to supervise and promote it.
Li Keqiang said that in recent years, the Chinese government has taken various measures to solve the problems of difficult and expensive financing for small and medium-sized enterprises, most of which are private enterprises. Private enterprises not only contribute more than 50% of the country's tax revenue, but also support China's largest employment.
Li Keqiang said that the RMB exchange rate has fluctuated to a certain extent recently, and some people even think that this is China's intention, which is completely unrealistic: because the one-way devaluation of the RMB exchange rate does more harm than good to China, China will never rely on the devaluation of the RMB to stimulate exports road. China insists that the direction of market-oriented exchange rate reform remains unchanged. Not only will it not engage in competitive devaluation, but it will also create conditions for exchange rate stability. China's economic fundamentals are stable, its international payments are balanced, and its foreign exchange reserves are abundant. The RMB exchange rate can be kept basically stable at a reasonable and balanced level.
Li Keqiang pointed out that the world today is at a "crossroads", and voices for promoting globalization and de-globalization exist at the same time, but we are gratified to see that the former voices represent broader public opinion. Although there are imperfections of one kind or another in the process of globalization, the trend of globalization is unstoppable. In international cooperation, China has always adhered to the principles of mutual respect, tolerance and equal cooperation, and firmly upheld the basic rules of multilateralism and free trade. We believe that no unilateral action can finally solve the problem.
