Posted on 21 Feb 2022
To support a steady growth in China's industrial sector for 2022 and to withstand the pressure from shrinking demand, rising supply and weakening market sentiment, China's 12 top-level governing bodies including the National Development and Reform Commission (NDRC) has released measures in six aspects of taxation and fees, financing, stabilizing supplies and prices, investments, land lease and pollution control, and government coordination, according to a NDRC post on the afternoon of February 18.
Beijing has reiterated on a few occasions the pressure from the three aspects of China's economy in 2022, and at the same time it has stepped in to cool down the overzealous coal and iron ore prices recently, and the joint notice by the top governing bodies is a clear signal that Beijing is well aware of the potential challenges and has decided to tackle these as early as possible.
Among the measures, taxation and fees relief measures will be to implemented on medium-, small-, and micro-sized enterprises, and financing via bank loans will prioritize domestic manufacturers and decarbonization attempts.
At the same time, Beijing will endeavour to stabilize the supplies and prices of raw materials and elementary products such as iron ore, fertilizer, copper concentrates, ferrous and nonferrous scraps and waste paper.
As for fixed asset investments, the funding will be tilted towards the construction of windmills and solar energy facilities in East and South China, the upgrading of the coal-fired powers houses in the northern part of the country, the decarbonization and power conserving projects among the domestic steel, nonferrous, construction materials, and petrochemical enterprises, the development of the new infrastructure facilities such as 5G, big data centre, and e-commerce and warehousing to facilitate foreign trade.
Land leases will be prioritizing recycling industry and raw material production bases as well as large-scale projects that meet energy consumption criteria.
To facilitate the execution of all these measures, NDRC and the Ministry of Industry and Information Technology will be working together with key industrial provinces and closely monitor the progress in those key provinces, key industries, key industrial parks and key enterprises, and the provincial-level governments need to draft detailed measures to best serve the needs of their local industries and help local enterprises with any issues.
Source:Mysteel Global
