The Chinese government wants to facilitate businesses in the second largest economy with a series of measures.
The NDRC State Planning Bureau of the People’s Republic yesterday presented plans to promote, among other things, private companies and better protect intellectual property. Obstacles to investments and market access are to be reduced.
This should stimulate the economy of the Asian country, which is currently feeling the trade dispute with the United States. Public procurement and contract awards are said to be open, fair and transparent.
In addition, banks should increase lending to private companies and small companies and offer targeted products and services. Despite several measures to stimulate the Chinese economy is currently losing momentum.
In the second quarter, the gross domestic product (GDP) within a year by 6.2 percent, as the National Statistics Office announced. Thus, the economy weakened compared to the beginning of the year, when the plus was still 6.4 percent. Economists had expected exactly this value for the second quarter.
Breath in the trade dispute
The US and the European Union have long been calling for China to relax restrictions on foreign companies and equal market access. This is also part of the trade dispute with China sparked by US President Donald Trump.
The government in Beijing had already pledged further opening to banks and insurers in May. Requirements to set up subsidiaries and branches in China should be abolished.
The US has given China numerous special tariffs because of the trade dispute, to which the People’s Republic reacted with just such duties. The conflict is also affecting the global economy. At the end of June, Trump and Chinese President Xi Jinping agreed on a breathing space in the dispute. Trump had said he assumed that China and the US were „back on track.“ New special duties should not exist for the foreseeable future.
