Chinese leaders promise more economic support after slowdown
ABC News
Chinese leaders have promised tax cuts and support for entrepreneurs to shore up slumping economic growth as the country grapples with a wave of bankruptcies and defaults among real estate developers caused by a campaign to rein in surging debt
BEIJING -- Chinese leaders on Friday promised tax cuts and support for entrepreneurs to shore up slumping economic growth after a campaign to rein in surging corporate debt caused bankruptcies and defaults among real estate developers.
A statement issued after an annual planning meeting led by President Xi Jinping called for “maintaining stability,” reflecting anxiety about rising risks after economic growth sagged to an unexpectedly low 4.9% over a year earlier in the quarter ending in September.
“Our country’s economic development is facing the triple pressure of demand shrinking, supply shocks and weakening expectations,” the statement said.
The ruling Communist Party is trying to keep the world’s second-largest economy on track while forcing real estate developers and other companies to cut debt that it worries is dangerously high and threatens financial stability and long-term growth.
