Today (March 15th), after the closing of the second session of the 13th National People's Congress, Premier Li Keqiang of the State Council met with Chinese and foreign journalists interviewing the second session of the 13th National People's Congress at the Golden Hall on the third floor of the Great Hall of the People and answered their questions.

VAT Reduction on April 1^st Social Security Rate Reduction on May 1^st

Li Keqiang: This year, we are determined to reduce taxes and fees on a larger scale. We will reduce the value-added tax and social security contribution rate of units, and reduce tax and fee dividends by nearly two trillion yuan. On April 1st, VAT will be reduced (reducing the current 16% tax rate of manufacturing industry and other industries to 13%, the current 10% tax rate of transportation industry and construction industry to 9%, ensuring that the tax burden of major industries will be significantly reduced; keeping the tax rate of 6% in the first class unchanged), and on May 1st, the social security premium rate will be reduced (the contribution rate of basic old-age insurance units can be reduced from 20% to 16% as originally stipulated), which will be pushed aside in an all-round way.

Reduce the time of business licensing to 5 or even 3 days this year

Li Keqiang: The government still needs to reduce the time for examination and approval and certification. It has reduced the time for enterprises to apply for licenses from 22 days to 8.5 days, and this year to 5 days or even 3 days.

Activate the vitality of 100 million households in the market

Li Keqiang: Now the main body of the Chinese market has exceeded 100 million households, which has stimulated their vitality. This force can be said to be incalculable. We still need to continue to promote tax reduction and fee reduction, simplify our administration, foster new momentum, relax market access, create a fair competitive environment and a series of measures to loosen market ties, make room for enterprises and relieve people's worries. By releasing their creativity, we will be able to keep the economy in a reasonable range and promote high-quality development.

We will not let the economy slip out of a reasonable range.

Li Keqiang: China's economy has indeed encountered new downward pressure. Now the world economy is slowing down. During this period of more than a month, several international authorities are lowering their expectations of world economic growth. China moderately lowers its expected growth target by interval regulation. It not only links up with last year's economic growth, but also shows that we will not let the economy slip out of a reasonable range. It can be said that the signal to the market is stable.

Against the background of the rise of international trade protectionism, it is indeed hard to achieve a 6.6% growth rate. The total amount reached 90 trillion yuan. On this basis, this year's growth is expected to be 6% - 6.5%. This is a high-base, large-scale growth, which can be said to be in itself.

"Flood irrigation" is not advisable

Li Keqiang: Of course, in the face of new downward pressure, we need to take effective measures. One way is to make quantitative easing, overissue money and increase the deficit rate on a large scale. The so-called "flood irrigation" means that turnips are quick and not muddy. It can be effective at a time, but it will bring sequelae, so it is not advisable. We still need to persist in resisting downward pressure by stimulating market vitality. In the past few years, we have also encountered downward pressure. What we have taken is measures to stimulate market vitality, because the market vitality has increased and the momentum for development will inevitably increase.

Keep policy space and use tools such as deposit reserve ratio, interest rate, etc.

Li Keqiang: We have policy space. For example, we have raised the deficit rate by 0.2 percentage points this year, which does not exceed the international warning line of the so-called 3%. And we can also use quantitative or price-based tools such as reserve requirement ratio and interest rate. This is not to relax monetary policy, but to make the real economy more effectively supported. No matter what new situation happens, it is very important for us to base ourselves on the present situation and take into account the long-term situation, maintain China's economic stability, and keep the long-term trend of China's economy in good shape unchanged. China's economy will always be an important anchor for the stability of the world economy.

Ensure that all industries have tax cuts and no increases

Li Keqiang: This year's larger tax reduction and fee reduction is actually a major reform and an important choice. Previously, we repeatedly calculated that there are many plans, one is to reduce the VAT rate by one percentage point every year in the next few years, but in the current situation, enterprises may not feel deeply. Therefore, we are determined to reduce the value-added tax rate of manufacturing industry, which accounts for more than 50% of VAT, by 3 percentage points. Reduce some industries, such as construction industry, by 1 percentage point, while all other industries ensure that only the reduction does not increase. Because of the reason of tax system, there may be less deduction in some industries in the process of promotion, and tax revenue may increase. We have also made serious preparations to increase deduction for them, to patch them, and to implement inclusive tax reduction for all small and medium-sized enterprises to ensure that tax burden in all industries is only reduced but not increased. As for the contribution rate of basic endowment insurance units, we have made it clear that it can be reduced from 20% to 16%.

If the government is going to live a tight life, it is going to give in to profits and offenders.

Li Keqiang: We calculated the accounts carefully. Tax cuts are actually nurturing, expanding the fiscal base and increasing revenue. From the perspective of the trend, the real economy and enterprises should make them bigger, bring more employment and increase the income of the employed people. The government needs to live a tight life, to make profits, to make offenders, to make profits for enterprises and people, so that finance can be more sustainable. We are not doing this in anticipation of the future, but in nurturing it.

Guarantee Employment for Key Populations and Guarantee No Zero Employment Families

Li Keqiang: We add more than 15 million new urban employment workers every year, which will not be reduced in the next few years, and we will also provide millions of new migrant workers with the opportunity to work. This year we have decided to ensure that the number of new urban employment is more than 11 million. In fact, we hope to achieve the actual scale of employment last year, that is, more than 13 million people.

We should take more measures at the same time, and continue to guarantee the employment of some key groups of people, such as university graduates, demobilized servicemen and transferred workers. We should also ensure that there are no zero-employment families and give preferential policy support to those enterprises that have more labor.

Here I would like to emphasize the employment of migrant workers. China now has more than 280 million migrant workers, and the number is increasing by millions every year. They are the main force in many industries. Most of the farmers'income comes from working. There are countless families' expectations behind the migrant workers.

Include 50% of medication for patients with chronic diseases such as hypertension and diabetes into insurance

Li Keqiang: This year, we need to do two things in this respect. One is to insure 50% of the medicines used by patients with chronic diseases such as hypertension and diabetes. The other is to improve the reimbursement standard of major illness insurance, so that 1.4 billion people will be covered by major illness insurance and tens of millions of people will benefit directly. Although our health insurance covers a large number of people, our farmers' per capita income is 15,000 a year. It is very difficult to carry serious illnesses on their own. 

Higher Attention Should be Attached to Nursery Care for the Aged

Li Keqiang: We should continue to improve people's livelihood in the process of economic development, seize some key and difficult issues of people's livelihood, and do it one by one. Now the big data show that the problem of "one old and one small" is that there are difficulties in providing old-age services and childcare services. This really deserves our higher attention.

At present, if we count the elderly population over 60 years old, there are nearly 250 million people, 170 million people over 65 years old, and hundreds of millions of children under 6 years old. Their service problems involve the vast majority of families, but our service supply in this area is insufficient. After the implementation of the two-child policy in an all-round way, the difficulty of nursery care has become even more prominent. There are only three beds for every hundred people in the service provided by pension institutions. Some big cities have statistics that they may not wait until they are 90 years old for their old-age beds. I went to some places to investigate and found that I have good experience, that is, to focus on the development of community care services for the elderly, so that it can be accessible, inclusive and fair, as long as it is safe and reliable, everyone is welcome.

Let the financing cost of small and micro enterprises be reduced by another percentage point on the basis of last year

Li Keqiang: This year, we should seize the "neck" problem that financing is difficult and expensive, which restricts economic development and market vitality. We should take multiple measures to reduce the financing cost of small and micro enterprises by one percentage point on the basis of last year.

The measures of opening up have been put forward, and of course they should be implemented.

Li Keqiang: Opening up to the outside world is China's basic national policy, which benefits the Chinese people generally and benefits the world. Why don't we do that? The measures of opening up have been put forward, and of course they should be implemented. Like last year, some of our major basic industries have liberalized the share ratio of foreign investment, and many major projects have landed. Last year, we used foreign capital, which is still the largest number of developing countries in the world. China will continue to listen to opinions from all sides and keep the temperature of hot soil open to the outside world.

In short, this year's opening-up measures will continue to be pushed forward and pushed forward. As I have said many times, China's opening-up measures are not always launched in a package, but they come out every year or even every quarter, but in retrospect, they will bring about great changes that cannot be imagined.

The closer the compatriots on both sides of the Straits share development opportunities, the better

Li Keqiang: We adhere to the one-China policy and the 1992 consensus to promote peaceful and stable development across the Straits and the motherland. As compatriots on both sides of the Taiwan Straits are of the same roots, we have introduced more preferential policies to enable Taiwan compatriots to enjoy equal treatment with their compatriots on the mainland. New measures should also be taken to put 31 measures firmly in place, because compatriots on both sides of the Straits share development opportunities, and the closer they get, the better the development of cross-strait relations will be. We all hope to realize the common dream of the Chinese nation. 

The general trend of Sino-US relations remains unchanged

Li Keqiang: In my view, since the establishment of diplomatic relations between China and the United States for 40 years, bilateral relations have been moving forward and achieved fruitful results. In this process, twists and turns are constantly changing, but the general trend of moving forward has not changed. Because there are broad common interests between China and the United States, our common interests far outweigh our differences. Maintaining stable bilateral relations between China and the United States is not only beneficial to both sides, but also to the world. In my opinion, the general trend of moving forward and continuing to move forward in twists and turns will not and should not be changed.

It is unrealistic and impossible to separate the two major economies of China and the United States

Li Keqiang: After decades of development and cooperation, China and the United States, as two major economies, can be said to be you, me and you. It is unrealistic and impossible to artificially separate these two economies. We should promote the development of Sino-US relations, including economic and trade relations, in line with the principle that cooperation is better than confrontation, mutual respect, equality and mutual benefit, so that the people of the two countries can benefit from it. With regard to contradictions and differences, we believe that the Chinese and American people have the wisdom and ability to defuse control and promote stable and healthy development of Sino-US relations in line with world trends.