China exempts small businesses from tax to protect jobs, boost confidence

HONG KONG - To ensure that its economy expands by 7.5% this year, China’s State Council has announced temporarily exemption of business tax and VAT for some small and micro-sized enterprises and measures to stabilise exports – and to accelerate railway investment. HSBC says the measures will help buffer demand and the employment slowdown. “These targetted measures should boost confidence and reduce downside risks to growth,” says HSBC.