After weeks of growing mistrust regarding China’s economy, the Chinese government renewed its efforts in order to provide investors and businessmen with fresh evidence that its national economy is actually changing and remains in better shape than what’s been said for some time. Beijing has decided to not deny the current difficulties which emerged with the start of China’s long march toward the “new normal”.
The Chinese authorities acknowledged the big food supply shortfall the country still faces could be a long-term threat to China’s food security. They also raised fuels prices, setting a floor for adjustment to buffer the negative effects of violent fluctuations in oil prices. The Chinese state also sought to optimize its tax revenues through a vast VAT reform and showcased its intellectual property (IP) achievements on the occasion of the 16th World IP Day.
The 11.1% year-on-year rise in China’s industrial profit in March 2016, and the positive development of China’s economy in Q1 2016 indicated that the optimization of China’s economic structures could be bearing fruit already. The government’s message may be summarized as follows: as China is heading for economic upgrades there are still plenty of profitable business opportunities.