The year that has just opened could bring important news in the Chinese economic sector. In fact, in 2019, China will face several challenges and changes, which could change the nation’s economic and financial fabric and generate greater profits.

        The first government amendment should be the one related to the tax reduction. China, first, would be pondering large-scale tax cuts in order to lower the burden on the real economy and improve market confidence. This is confirmed by a more than authoritative source such as Finance Minister Liu Kun.

        The Minister’s remarks come on the heels of a new set of tax breaks for small and micro businesses, which include lower tax rates, higher tax thresholds and favorable policies for technology startup investors.

        “About 17.98 million businesses in China are covered by the inclusive tax reduction, which represents over 95% of the total corporate taxpayers,” Liu said.

        On the tax relief front, China will implement bailouts for about 1.3 trillion yuan

        In 2019, then, China is preparing to intensify its efforts to carry out the value added tax reform for substantial tax cuts. At the same time, it will implement the special deductions on individual income taxes and will lighten the economic burden from social insurance payments.

        With strong tax cuts, it is estimated that China is ready to save, overall, about 1.3 trillion yuan (almost $ 200 billion) for the market entities in 2018. While it will persist in tax cuts, China will take at the same time more audacious and effective measures to implement a proactive tax policy

        “Fiscal spending will be moderately improved according to the economic situation and demand, and there will be a relatively substantial increase in the issue of special-purpose local government bonds to support projects under construction,” Liu concluded.

        Opening to foreign capital: China looks towards new financial markets

        In terms of relations with foreign countries, China will consider the further opening of its financial markets. This will lead to a better competitiveness of the sector, as underlined by the country’s main financial regulatory body.

        In this sense, the government will study new opening policies, with particular interest in allowing foreign professional insurers to become strongly aware of joining the Chinese market. This was confirmed by Xiao Yuanqi, spokesman for the Banking and Insurance Regulations Commission in China.

        Xiao said that China would not only want foreign companies to set up subsidiaries and invest in China, but also hoped that they would bring professionals and technologies.