MNI China Press Digest Mar 2: Tax Cuts, Normal Growth, Bitcoin

The following lists highlights from Chinese press reports on Tuesday:

• China is likely to cut taxes and fees by CNY1 trillion this year, further reducing VAT rates, individual income taxes, and social security fees, Xinhua News Agency reported citing Shi Zhengwen, a professor at the China University of Political Science and Law. The scale of the cuts will be lower than last year, which totaled about CNY2.5 trillion. China will continue with proactive fiscal policies with spending on people's wellbeing and with direct transfer to local governments amounting to over CNY3 trillion this year, Xinhua said. Monetary policy will remain prudent, emphasizing precision, flexibility, and moderation in line with current economic growth, inflation, and employment, Xinhua reported citing Wen Bin, the chief researcher at China Minsheng Bank.
• China's macroeconomic policies must be stable to help achieve the goal of normal growth after last year's measures to counter the pandemic, Huang Yiping, a former member of the PBOC Monetary Policy Committee, said in a blogpost. China should maintain positive fiscal and prudent monetary policies, support SMEs and account for financial risks, Huang said. China should let the market allocate and price resources, and avoid overexerting the government's role after the pandemic ends, he said.
• Small bitcoin investors may suffer heavy losses as its surge to about USD60,000 from cents in 11 years points to a bubble, the Economic Daily said in a commentary. The legitimacy of bitcoin is questionable and financial regulators in most countries don't trust cryptocurrencies, the Daily said.