China to extend electricity price preferential policy to support company operations

SHANGHAI, May 22 (SMM) – China will continue to offer 5% cut in industrial and commercial electricity prices till the end of this year and lower the average charges of broadband and leased line by 15%, in a bid to reduce the operating costs of enterprises, said Chinese Premier Li Keqiang as he delivered the 2020 government work report on Friday. 

SMM expects the moves to provide some flexibility to profits at electric arc furnace (EAF) steel mills.

“We will also reduce or exempt the rents of state-owned houses, encourage all types of landlords to reduce or delay rent collection on the back of policy support. Illegal fee-charging involving enterprises will be punished,” Li said. 

The premier also talked about cutting 500 billion yuan in taxes and fees, pointing out that the government will aggressively implement current policies together with institutional arrangements to create a more enabling environment, helping market entities overcome difficulties and achieve development.

All tax and fee reduction policies must be fully implemented for China's businesses in order to let businesses to sustain themselves and ensure success for the future.

Premier Li delivered the government work report as the 13th National People's Congress (NPC), China's top legislature, opened its third session Friday morning at the Great Hall of the People in Beijing.