China Covid: capital Beijing unveils 12-point plan to ‘prop up’ economy

Name: Beijing begins to ease Covid rules, but business areas remain deserted
Uploaded: 2022-12-07T12:15:09.000Z
Duration: 2 min 19 s
Description: Beijing begins to ease Covid rules, but business areas remain deserted

Beijing has released a 12-point guideline that aims to ‘maximally reduce’ Covid-19’s effect on socio-economic development and the economy

The measures range from cutting operational costs for companies to stabilising supply chains, as well as supporting employment and tax breaks

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Beijing, which has a population of nearly 22 million people, has been plagued by a high number of virus cases and has only recently eased restrictions. Photo: EPA-EFE/WU HAO

Luna Sunin BeijingandSylvia Ma

Published: 8:15pm, 7 Dec 2022

Beijing is rolling out support measures to relieve strain on the city’s economy as the Chinese capital grapples with surging coronavirus cases and disruption to business.

The measures range from cutting operational costs for companies to stabilising supply chains and supporting employment.

The city released a 12-point plan on Tuesday that aims to “maximally reduce Covid’s effect on socio-economic development, help the market solve difficulties, [and] prop up the economy”.

Beijing, which has a population of nearly 22 million people, has been plagued by a high number of cases, while restaurants, shopping centres and entertainment venues have only reopened recently as virus curbs have been eased.

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Beijing begins to ease Covid rules, but business areas remain deserted

Under the plan, authorities are trying to jump start the economy through tax cuts and loan repayment extensions for small- and medium-sized enterprises. Deadlines for social security payments will also be delayed.

Purchases of new energy vehicles have been exempted from taxes, while companies buying new equipment and investing in research and development will get tax breaks too.

Financial support will be given to investment projects that focus on technological innovation, advanced manufacturing and the modern service industry.