Tax cuts, employment heatedly discussed among Chinese political advisors

BEIJING - Tax cuts and employment were heatedly discussed by China's political advisors in a panel discussion on Premier Li Keqiang's 2017 government work report delivered during the annual two sessions.

"Tax cuts are key for companies to make profits," said Cao Dewang, a member of the Chinese People's Political Consultative Conference (CPPCC) National Committee.

Cao's company, Fuyao Group, a leading manufacturer of automotive and industrial glass, increased investment in the United States in 2016.

Ma Weihua, another CPPCC National Committee member and a well-known banker, called on his fellow bankers to lend more to small- and medium-sized enterprises (SMEs).

He also urged the government to divert more venture capital to SMEs.

SMEs are the main source of jobs, according to Qian Yingyi, dean of Tsinghua University School of Economics and Management and also a CPPCC National Committee member.

"It is encouraging to hear that China will implement an employment priority strategy this year and will create more than 11 million urban jobs," said Qian.

The government aims for a registered urban unemployment rate within 4.5 percent in 2017.

Qian spoke highly of the government's efforts to increase employment as a high employment plays a very important role in economic growth and social stability.

Qian further suggested that the registered unemployment rate cover rural areas as early as possible, while unregistered jobless estimates should be considered more in policy-making.

"Job creation is a priority anywhere in the world," said former Sinopec chairman Fu Chengyu. "Without jobs, people have no incomes, and there will be no consumption driving future growth."

According to the government work report, this year's target for urban job creation is higher than that of last year, underlining the growing importance China attaches to employment.

"Considering our sound economic fundamentals and the capacity they bring for job creation, this target is attainable with hard work," it said.