The measures are aimed at cutting back the hurdles that services and product suppliers face in order to boost their profitability and drive domestic demand, said a report in China Daily.
Utility costs in agricultural production and supply should be lowered according to a statement released after an executive meeting of the State Council, presided over by Premier Wen Jiabao (pictured).
Power and water costs in pig farming and vegetable production will be equal to agricultural production costs, while power, gas and heating costs in farmers’ markets will be the same as industrial costs. Fees in public services, meanwhile, will be subject to stricter regulataions, according to the release.
These measures came in the wake of a notice issued in early August by the State Council to reform the structure of supply chains and boost the development of the industry to increase the sector’s contribution to economic growth.
Jin Linbo, vice president of the National Academy ofEconomic Strategy at the Chinese Academy of SocialSciences, told the Chinese newspaper that the measures are timely in view of weak domestic consumption.
“These measures intend to solve problems confronting services and product suppliers. However, the key to expanding domestic demand lies in increasing consumers’ income and enhancing their consumption confidence,” he said.
