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China’s main tool to prop up the slowing economy in 2019 is tax cuts, Finance Minister Lui Kun reportedly said on Thursday.  

The world’s second-largest economy slashed its GDP target to 6 to 6.5 percent this year from the 2018 target of 6.5 percent amid an ongoing trade war with the US.  

Authorities, however, have ruled out “flood-like’ stimulus to counter the slowdown.  

Key quotes

China seeks to help manufacturers and small firms with tax cuts.  

Deepening VAT reforms is a key priority.  

Pressure to balance fiscal revenue and spending is very pronounced in 2019.  

Will guide companies to increase spending on technology, upgrade supply chain.