China Reduces Taxes in Order to Support Economic Growth

Forex News

Chinese government continues to support economic growth amid an escalating of trade war with the United States. Beijing is speeding up infrastructure spending and offering help to smaller companies as China's economic growth slowed in Q2 to 6.7% yoy, below 6.8% growth in the first quarter.

The Chinese State Council announced tax cuts that should reduce firms' costs by more than 45 billion yuan ($6.59 billion) this year. The China’s government also decided to increase the rate of export tax rebates for some products, and increased the amount banks can lend to small firms and not have to pay taxes on interest income.