China improves fiscal policies for 2016

A more energetic fiscal policy to maintain China’s growth in 2016.

China has announced its fiscal policy for next year which will be more pro-active with additional tax cuts and government spending.

In a report released by the government of the East Asian country, the strategy looks back into 2015’s performance and maps out a five-year plan which will develop a flexible economic platform.

Additional tax cuts for both individuals and businesses are expected.

In order to help businesses reduce financing costs, the central bank is likely to cut interest rates again next year after six cuts over the past 12 months.

If this happens, more capital is expected to flow out of China to the other side of the Pacific where interest rates have already begun to rise and are expected to continue to do so next year.

Other measures include plans to prevent and defuse financial risks while taking advantage of its international relations.

The government is signing bilateral deals with other countries to promote the cross-border use of the currency and providing more Yuan-denominated products.