China to create 11 million jobs
BEIJING: IN a world where joblessness and poverty plague many countries, the People’s Republic of China has vowed to create 11 million new urban jobs and, in the process, lift millions of people from abject poverty over the next financial year.
So said the country’s Premier of State Council Li Keqiang yesterday before the National People’s Congress (NPC) – the country’s legislative body which will sit until March 20, deliberating on important policy decisions, discussing and voting on draft bills, and voting in new state officials.
“Over the past five years… more than 66 million new urban jobs have been added, and our country, with its population of over 1.3 billion, has achieved relatively full employment. We have set the following projected targets this year: Over 11 million new urban jobs (will be created). This year, we will further reduce the poor rural population by over 10 million, including 2.8 million people who are to be relocated from inhospitable areas,” said Li.
To achieve this, more efforts will be put into developing local industries and creating favourable conditions for businesses which will in turn employ more people. A state guaranty fund is to be established in support of leading innovative enterprises, with preferential tax policies for venture capital investments.
“We will further lighten the tax burden on businesses. We will reform and improve VAT – turn the three tax brackets into two, and adjust rates, and raise the threshold for annual sales revenue for small-scale taxpayers. Far greater numbers of low-profit businesses will see their income tax halved, and the ceilings on deductible business purchases of instruments and equipment will be significantly raised. Power grid charges and electricity for general industrial and commercial businesses will be cut by an average of 10%.
“Given our economic fundamentals and capacity for job creation, GDP growth of 6.5% will enable us to achieve relatively full employment. The surveyed urban unemployment rate covers rural migrant workers and other permanent urban residents.”
Some good news was also announced for foreign investors at yesterday’s NPC sitting, with Li saying “overseas investors will be granted tax deferral for the reinvestment of profit made in China”. Li said further that there were plans to simplify procedures for setting up foreign-investment enterprises, with business filing and business registrations expected to be processed together at the same time.
Speaking to Independent Media following Li’s speech, Beijing resident Song Jingli said she was most impressed by “plans to improve people’s disposable income, tax reduction and better education for all”.