China Promises Tax Relief for Private Companies
China wants to lower the burden on private companies. Beijing is also opening the door for investment in sectors such as oil and gas, telecommunications and railways.
The move is a fragment of a plan by China to breathe new life into old trade routes.
China’s economy is at this time growing at the lowest level in thirty years. This also ensures that private companies are increasingly confronted with more difficult access to capital.
China wants to attract new investors. The country, therefore, allows funds in the hands of asset managers and insurers to invest in private equity funds. This may ease the struggle of some private companies.
Beijing will also reduce financing costs for smaller private companies and will try to establish financial institutions that primarily provide services to these companies.
China also promises to improve legal protection for private companies and the assets of entrepreneurs.