China to enhance intensity, effectiveness of proactive fiscal policy: official

BEIJING -- China will enhance the intensity and effectiveness of its proactive fiscal policy this year and further improve fiscal and tax measures, Liu Kun, minister of finance, said at the China Development Forum 2023 that opened Sunday.

Liu said China will continue to treat enterprises of all forms of ownership equally, including private and foreign-funded businesses, and consistently improve their development environment.

In a bid to promote high-quality development, China will enhance fiscal spending intensity, emphasize the role of local government special-purpose bonds in driving investment, and channel more financial resources toward lower levels of government, Liu said.

Efforts will also be made to improve preferential tax and fee policies, optimize the fiscal spending structure, and strengthen fiscal policy's coordination with monetary, industrial, technological and social policies, Liu said.

Liu said support for micro, small and medium-sized enterprises, self-employed individuals, and industries in extreme difficulties will be intensified.

China's newly implemented tax and fee cuts totaled 8.8 trillion yuan ($1.29 trillion) between 2012 and 2021.

Liu expects that China's fiscal policy will play a better role in helping promote stable economic growth, build modern industrial systems, push forward new urbanization, improve people's well-being, and share fresh opportunities in Chinese modernization with the world.