China has pledged tax cuts and infrastructure spending to support economic growth, as economists poured doubt on a strong rebound for the world’s second-largest economy as long as lockdowns persist.
Beijing will increase annual tax cuts by more than 140 billion yuan ($21bn) to 2.64 trillion yuan, offer tax rebates to more economic sectors, and postpone social security payments worth 320 billion yuan until the end of the year, the state-run Xinhua news agency quoted the State Council, China’s Cabinet, as saying on Monday.
Other measures include 150 billion yuan ($22.5bn) in emergency loans for the struggling aviation sector, the issuance of 300 billion yuan ($45bn) in bonds to fund railway construction, and investment in new projects in energy, transport and water conservation.
“At present, the downward pressure on the economy continues to increase and it’s very difficult for many market entities,” the cabinet said,…
