During the first news conference held at the Press Center to celebrate China's 70th Anniversary, officials declared that the country's finances are stable, healthy, and sustainable.
According to the People's Bank of China, the country's economy is running within a "reasonable range," despite all of the recent geopolitical and economic developments.
PBOC Governor Yi Gang announced during the news conference on Tuesday that China's current macroeconomic policy and its monetary policy still has the capability to cope with added downward pressures. For this reason, the bank thinks that there is no clear rush to take on desperate measures such as interest rate cuts and quantitative easing as of the moment.
Yi also mentioned during his speech that China has yet to set a timetable to launch its long-planned digital currency. Given the economic and financial situation, the PBOC finds it unnecessary to accelerate its planned launch.
China's Minister of Finance Liu Kun stated during the event that the country's tax and fee cuts, which reached over $189 billion from January to July, managed to help the economy rebound this year. Liu mentioned during the news conference that the country's "comprehensive "and "unprecedented" reduction policies have benefited all taxpayers.
The private sector enjoyed around 63 percent of the tax relief, while individuals benefited from the rest. Industries such as manufacturing enjoyed the majority of the tax and fee cuts, with over $51.25 billion fewer duties being levied.
According to the finance ministry, the tax and fee cuts have managed to stimulate China's market vitality, which had, in turn, boosted economic growth momentum.
To illustrate the positive effects of the various monetary and economic measures, the finance ministry revealed that the first eight months of 2019 saw a total of 19,000 newly-registered companies. Total investments in high-tech industries across the country had also increased, by as much as 13 percent year-on-year. The ministry credited the government's imposed tax and fee cuts as a vital factor in the continued stability of the Chinese economy and its continued growth.
By far the largest contributor to the continued growth of the country's economy is the continued increase in consumption. According to the National Development and Reform Commission, consumption contributed around 60 percent to China's economic growth for the first half of the year.
The government plans to continually roll out new measures to stimulate consumption throughout the year. The NDRC stated at the event that these measures will not only target the enhancement and expansion of consumer spending but also to gradually increase the income of citizens across the board.
