China’s government said it would target more spending to boost growth, concerned that the economy is faltering. The government will seek to cut taxes on small firms and speed up the construction of railway lines. Such measures were part of China’s economic work plan for 2014, however, the government has never before put them together in a package aimed at boosting economic growth. As further stimulus measures, Chinese authorities said they will also extend tax provisions granted to small businesses into 2016. However, a string of disappointing economic data, including reports indicating a slowdown in China’s manufacturing activity, had led many analysts to believe growth may fail short of the government’s target. Chinese premier Li Keqiang has sought to reassure markets that the government remains prepared to act, and has previously emphasized that creating jobs was the most important item on his agenda.

 

(The Wall Street Journal, BBC, The Economist, April 1)