The New York Times reports on policy changes China is making in order to stimulate its slowing economy:
China’s State Council, or cabinet, met over the weekend and decided to shift the emphasis toward maintaining “a stable and rapid economic development,” the state-controlled media reported on Monday. The previous policy had been “to ensure growth and control inflation.”
As part of the new policy, the State Council announced that it would increase export tax rebates for things as varied as labor-intensive products like garments and textile to high-value products like mechanical and electrical products. Banks will be encouraged to lend more money to small and medium-size enterprises and support programs will be drafted to help farmers.
Government agencies will also spend more to rebuild earthquake-damaged areas of southwestern China, to improve transportation links and other infrastructure and to improve the social welfare system, the official Xinhua news agency said, without providing details.