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Premier Li Keqiang urged government departments to speed up the implementation
of tax reductions to invigorate the country’s economy, amid rising uncertainties about growth on Friday.
Li was speaking with entrepreneurs from the manufacturi
ng, construction and service sectors at the Zhongnanhai leadership compound in Beijing.
The businesspeople said they have received benefits from the tax reduction measu
res in the past months, after the measures were introduced by Li in the Government Work Report in March. They
also offered advice on how to further ease the tax burden on businesses.
After hearing their opinions, Li called tax reduction a great decision made by the Communist Party of China Central Comm
ittee and the State Council. It has boosted market confidence in outstanding ways and promoted the stable
growth of the economy, he said, adding that the positive factors for economic growth are increasing.
t seems to be a commonly held view in the West that China’s economic success heralds misfor
tune. Year after year, voices are heard claiming that the country’s good fortune is built on reckle
ss and irresponsible borrowing that presages collapse — a catastrophe that is forever imminent.
As part of this false analysis, Western rating agencies have been sounding the alarm ove
r what they interpret as mounting credit risks in China’s financial sector for many years.
The worry they spark each time they warn that China is supposedly going to hit a “debt iceberg
” necessitates top Chinese government officials explaining to the world what the country’s debt level is,
how it is likely to affect China’s overall economic well-being and what they are doing to address the risks.
That’s why, at a news conference held on the sidelines of the top legislature’s ann
ual session on Thursday, Finance Minister Liu Kun addressed the topic once again.