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China Subsidy Exchange

July 3, 2017

Four State Agencies Stress on Cost Reduction for Chinese Companies

On June 30, the National Development and Reform Commission of China, joined by the Ministry of Industry and Information Technology, the Ministry of Finance, and the People’s Bank, published a joint announcement for the companies in the real economy, the Circular of the Four Agencies on 2017 Key Work for Cost Reduction. The Circular calls for reducing the costs for companies in the real economy from eight aspects, i.e., reducing tax costs, reducing financing costs, reducing administrative transaction costs, reducing labor costs, reducing utilities and land costs, reducing logistics costs, raising capital turnover efficiency, and reducing companies’ internal costs. The Circular calls on relevant central government agencies and local governments to join forces to implement the cost reduction policies.