Caixin
May 29, 2020 05:35 PM
ECONOMY

Post-Virus Relief Funds to Go to Businesses and People in Need, Chinese Premier Says

What’s new: Chinese Premier Li Keqiang said Thursday that the country’s post-coronavirus fiscal relief package will focus not on infrastructure projects, but on aiding businesses and people in need.

At a press conference following the annual session of China’s top legislature, Li said that 2 trillion yuan ($143 billion) in funding, part of the package, should all be delivered to enterprises, especially small and midsize ones, and people in need via a real-name system to prevent manipulation and fraud.

The background: In this year’s government work report, Li said the government will raise the fiscal deficit by 1 trillion yuan this year from last year and issue 1 trillion yuan of anti-Covid-19 special treasury bonds as part of efforts to offset the economic fallout from the pandemic.

Relief policies “are not focused on large infrastructure projects. This is because big changes have taken place in China’s economic structure, where consumption is now the primary engine driving growth,” he said.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Related: Li Keqiang Touches on GDP Target, U.S. Ties, Hong Kong in Press Conference

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Matthew Walsh (matthewwalsh@caixin.com)

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