Local govts stepping up growth incentives

Guangdong, Jiangsu provinces continued to lead GDP pack in 2022

A number of regional economic powerhouses across China are rolling out substantial new policies to revive growth during the ongoing holiday period, aiming to provide a significant boost to recovery.

On Friday, the government of Northeast China's Liaoning province announced a mix of measures targeting revitalizing growth, with financial support focusing on small and medium-sized and micro businesses. The guideline said that the scale of inclusive loans funneled to small and micro businesses shall be expanded. In addition, relending and rediscounting will be scaled up to underpin inclusive finance.

The People's Bank of China, the country's central bank, has provided no less than 70 billion yuan ($10.32 billion) as relending and rediscounting quotas for small companies, agriculture and rural areas. The policies on inclusive loan repayment extensions will be, in principle, extended to June 30 this year.

Stronger support will also be provided to facilitate and support companies going public, the document said.

On Jan 19, the Jiangsu provincial government published a package of policy guidelines on its website with a mix of substantial fiscal and financial measures to stimulate growth. Specifically, property and land use taxes for local taxpayers in industries such as accommodation and catering, sports, entertainment, transportation, tourism and retail, as well as small-scale taxpayers in the first half, will be exempted.

The government will also set up special funding worth 10 billion yuan as targeted loans to help small and micro businesses tide over difficulties, while interest discounts will be provided for eligible projects.

In addition, the government is also ready to help businesses of all types to keep their payrolls stable and to support the employment of key demographics. Supportive measures are also being put in place to boost consumption sentiment, lower logistics and transportation costs and expand effective investment.

Last year, Jiangsu came in as the country's second-largest economic powerhouse only next to Guangdong, with a total GDP reaching 12.29 trillion yuan. The province accounted for about 10.2 percent of China's overall economy and has been an anchor of national growth.

Local statistics authorities nationwide are revealing local GDP figures for 2022. At least eight provinciallevel regions in China saw their respective GDP exceed 5 trillion yuan in 2022, with both Guangdong and Jiangsu provinces reaching over 12 trillion yuan, according to provincial government data.