• Premier Li believes that renovating shanty towns will improve the living conditions of low-income families.

Premier Li believes that renovating shanty towns will improve the living conditions of low-income families. (Photo : China Daily)

Despite the economic slowdown China is experiencing, Premier Li Keqiang has told businesses to expect reduced taxes and other policies, some of which are aimed to boost economic progress in the country. President Xi Jinping also took the same route, according to a report by China Daily.

In the Central Leading Group for Financial and Economic Affairs meeting held last Tuesday, Nov. 10, Xi called on the development of effective measures that will help sustain growth and reform in China.

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Xi also stated that the government will lend a helping hand, particularly in the creation of a stable business environment for all market sectors, to boost productivity.

Meanwhile, Premier Li Keqiang admitted that China's economic growth is indeed facing problems, but assured economists and businessmen that the government is taking steps to achieve medium-to-high growth and stabilize the economy.

Fiscal policies such as tax reduction and aid to companies are some of the options the government is considering to undertake. The Chinese government will also invest in infrastructure in central and western China. Li encourages private companies to join in such projects.

Other steps to improve China's economy include new monetary policies, the encouragement of market competition, and stricter supervision of quality of goods and industrial upgrade.

"We should allow the companies to take a breath," said Premier Li on Monday, Nov. 9.

On the other hand, economic experts make their own suggestions to tackle the slowdown of China's economic growth.

For Lu Feng, director of the China Macroeconomic Research Center at Peking University, the government should play a more proactive role in stabilizing growth and adjusting economic structure. There should be a balance between currency flow and the prevention of new bubbles.

Lu Ting, chief economist at Huatai Securities, believes that the speedy implementation of China's second-child policy can help reinvigorate the economy. The government should also redirect some of the country's resources to small and medium cities for better public services, the expert added.