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Weekly policy snapshot of Chinese economy

Source: Xinhua| 2019-03-23 12:48:30|Editor: Yamei
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BEIJING, March 23 (Xinhua) -- The following are the key moves taken by policymakers in the past week to enhance China's economic strength and sustainability:

-- New rule to promote cross-border investment, financing

China has amended its regulations on the capital management of transnational companies to help promote the liberalization and facilitation of cross-border trade and investment and better serve the country's real economy.

China will ease the registration management of foreign debt and offshore loans and launch pilot reforms to facilitate foreign exchange settlement and payment in multinational companies after registration. The country will also cancel restrictions that demanded multinational companies cooperate with only a limited number of banks.

-- Methanol-fueled vehicle sector to speed up

China will accelerate constructing the standard system of methanol-fueled vehicles, and support industrial organizations and associations in formulating the international standards for the vehicles.

It will also support the wide application of the M100 methanol-fueled cars in the provinces of Shanxi, Shaanxi, Guizhou, and Gansu, where fuel resources are abundant and methanol-fueled car programs have previously been piloted.

-- VAT reform measures unveiled

Detailed measures were unveiled to implement the value-added tax (VAT) reform to further reduce the tax burden on various industries.

Starting April 1, taxpayers that are subject to the 16-percent VAT rate on their taxable sales or imported goods will enjoy a 13-percent VAT rate, while those who are subject to the 10-percent VAT rate will only need to pay 9 percent.

Buyers of agricultural goods who are subject to a 10-percent deduction rate, which is used to calculate input VAT, will be subject to a 9-percent deduction rate.

-- Rules for foreign investment law in pipeline

The Ministry of Commerce said it is working with other authorities in preparing relevant rules to ensure the successful implementation of the foreign investment law.

It is also reviewing and reorganizing current regulations on foreign investment management, and will listen attentively to comments and suggestions from foreign-invested enterprises and other relevant parties during the rule-making process.

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