Stable macro policies aim to boost demand

China will continue with stable macro policies and adopt a combination of fiscal and financial measures in an effort to boost domestic demand and bolster support for the real economy, the State Council decided in an executive meeting chaired by Premier Li Keqiang on Monday.

The government will maintain a policy of targeted and well-timed regulation to deal with external uncertainties and ensure that the economy runs within a proper range, and it will firmly refrain from resorting to a deluge of strong stimulus policies, according to a news release of the meeting.

A more proactive fiscal policy will be pursued, as agreed at the meeting. The government will focus on introducing deeper tax and nontax fee cuts, and more companies will be eligible for an additional deduction of 75 percent of research and development spending from taxable income, a policy that is expected to cut another 65 billion yuan of taxes within this year.