MNI China Press Digest March 27: Fiscal, Decoupling, Tax

Highlights from Chinese press reports on Monday:

• China will intensify efforts to implement a strong fiscal policy and efficient taxation system this year to stabilise the economy, according to Liu Kun, China's Finance Minister. Speaking at the China Development Forum, Liu said the global economic situation was not optimistic, and China's economy faces challenges. Support for small and medium-sized enterprises, self-employed businesses, and disadvantaged industries will be a key focus this year, he said. (Source: 21st Century Herald).
• Decoupling from China will push global inflation higher and risks sparking a widespread recession, according to Yi Xiaozhun, former vice minister of the Ministry of Commerce and former deputy director general of the WTO. Yi said global cooperation on climate change and public health had become more difficult as the trading system had become more fragmented due to the pandemic and rising geopolitics. Liu said no country can establish a fully domestic supply chain, with China and the U.S. being no exception. Multinational companies are inseparable from China and building a new value chain without Beijing would be very difficult. (Source: 21st Century Herald).
• China should expand and implement a full real estate taxation system as soon as the economy returns to normal, according to ex-finance minister Lou Jiwei. In a recent article, Lou said real-estate tax is an important feature in the development of China’s financial system and evolution of local tax revenue. The complexity of property rights is the biggest difficulty to enact the required legislation, especially the differences in ownership rights and income between urban and rural dwellers.(Source: Yicai).