"AlEqtisadiah" from Riyadh
Today, Li Keqiang, the Chinese Prime Minister, expressed his full confidence in the country's ability to maintain its economic growth rate within a reasonable range during 2019, despite the challenges.
According to "Reuters", he said during a discussion with some foreign specialists working in China, "The country's economy has enough flexibility and great potential to grow, especially given the size of the local market and the rich human resources of 1.4 billion people."
He added, "We are therefore confident and fully capable of keeping the economic growth rate within a reasonable range despite the multiple challenges and risks of 2019."
The world's second largest economy grew by 6.6 per cent in 2018, which is the lowest growth rate since 1990, amid pressure from falling domestic demand and US-imposed tariffs.
Analysts polled forecast a slower growth of the Chinese economy to 6.3 percent this year as pressure continues.
Officials at the Chinese Ministry of Finance confirm that Beijing will boost fiscal spending this year to support the faltering economy of the country, as it will focus on further reductions in taxes and fees for small businesses.
Growing pressure on the world's second-largest economy pushed growth last year to its lowest level since 1990, as Beijing reinforces stimulus measures and encourages banks to increase lending.
Economists say the government may reveal more fiscal stimulus during the annual parliamentary meeting in March, which is including greater tax cuts and increased spending on infrastructure projects.
Li Dawei, an official at the Ministry of Finance, said that China's fiscal spending increased 8.7 percent to 22.1 trillion yuan ($ 3.3 trillion) in 2018, while revenue rose 6.2 percent to reach 18.3 trillion yuan.
The official in the Ministry of Finance stressed that his country achieved its goal of financial revenues in 2018 despite the large tax cuts last year.
Beijing implemented tax and tariff cuts of about 1.3 trillion yuan in 2018,
Sources familiar with financial policies expect Beijing to reduce value-added tax, which is ranging from 6 per cent for the services sector to 16 per cent for the manufacturing sector.
Hao Li, official at the Ministry of Finance, said that China will boost financial spending in 2019 "appropriately." He added that "growth in financial revenues is expected to slow this year."
Earlier sources reported that the target deficit could rise to more than 2.6 per cent of GDP but is likely to keep below 3 per cent.
Mohamed Azmin, the Minister of Economy of Malaysia, said, "Kuala Lumpur will cancel a $ 20 billion project to build a railway line with the China Communications Construction Corporation of China."
"The cost of the project is too large," Azmin said.
He was also reaffirming Malaysia's welcome of all forms of investment from China on a case-by-case basis.
He pointed out that the Cabinet took this decision because "the cost of laying the line is too large and we don't have the financial capability."
He noted that the government has not yet decided how much it will pay the Chinese company for the cancellation of the project.
Azmin said that the benefits alone on the project were up to 120 million dollars a year.
He stressed that "we cannot afford it, so this project must be terminated without affecting our good relationship with China."
