China fine tunes economic stimulus as it braces for new US administration
China is fine tuning its policies aimed at revving up its economy as it braces for an uncertain future in relations with the United States under President-elect Donald Trump
BANGKOK — China is fine-tuning policies to rev up its economy as it braces for uncertain relations with the United States under President-elect Donald Trump, giving manufacturers a 20% made-in-China price advantage in sales to the Chinese government.
The moves come ahead of a top-level annual economic planning conference scheduled for next week that will help set China's strategy for the coming year.
The Ministry of Finance announced it is seeking public comment on the made-in-China plan until Jan. 4. To qualify, products have to be made entirely in China, from the raw materials stage to the finished products, it said, although some components must just meet standards for a share of domestic-based production. Farm, forestry, minerals and fisheries products are excluded, the state-run Xinhua News Agency reported Friday.
Government procurement generally amounts to about 10% or more of business activity in major economies.
Under the program, companies will be given a 20% price advantage, with the government making up the difference, part of a series of moves to underpin stronger sales that also includes promoting insurance underwriting and easier access to financing for e-commerce and small- and mid-sized “little giants” and “hidden champions.”
Shares in China have surged this week on expectations that the planning meeting will yield more support for the slowing economy as a revival in exports helps to compensate for a sluggish property market and subdued consumer spending. The Hang Seng in Hong Kong and the Shanghai Composite index both gained
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