China confident of maintaining industrial growth in 2020

22 January, 2020 12:00 AM printer

Beijing: China is confident of maintaining steady industrial growth this year despite big pressures on the sector, underpinned by tax cuts and broad policy support, Minister of Industry and Information Technology Miao Wei said on Monday.

The country’s industrial output topped expectations in December by growing 6.9 per cent from a year earlier, the strongest pace in nine months, bringing full-year 2019 expansion to 5.7 per cent - within the government’s target of 5.5-6 per cent, report agencies.

Growth in the world’s second largest-economy cooled to a near 30-year low of 6.1 per cent in 2019 amid a bruising trade war with the United States, and more stimulus is expected this year as Beijing tries to boost sluggish domestic demand.

“Looking forward to 2020, industrial development faces many difficulties and risks,” Mr Miao told a news conference. “The pressure on stabilising industrial growth is still big.”

But the government will be able to “ensure the smooth operation of the industrial economy” this year as big tax cuts and policy efforts to ease corporate funding strains have started to gain traction, he said.

Beijing will continue to implement tax and fee reduction measures this yeas, focusing on the manufacturing sector, Mr Miao said without giving details.

The government has said its tax and fee cuts exceeded two trillion yuan (S$392 billion) in 2019.

China will increase investment in research and development and use other policy incentives to help promote innovations and upgrade the manufacturing sector, Mr Miao said.

China welcomes foreign firms to participate in the building of its 5G networks and opposes politicising the technology issue, he said, in an apparent criticism of Washington’s moves against Huawei, the world’s largest maker of mobile networking equipment. Washington is trying to persuade Britain not to use Huawei equipment in the upgrade of its telecoms network.