Annual NPC session unveils China's action plan for rejuvenation

Manipulators work at the production line at the new energy vehicle producer NEVS in north China's Tianjin Municipality, Dec. 4, 2017. China's national legislature convened its annual session Monday, announcing actions that will shape efforts in the years to come to make China a great modern socialist country. [Photo/Xinhua]

Quality growth, tax cuts

According to the work report, the central government set the GDP growth target at around 6.5 percent for 2018.

The target is the same as last year, but might deliver different growth as China makes it clear to prioritize quality over speed.

"We will strongly promote high-quality development," Premier Li said.

Observers have said that although continuous breakneck growth is now history, China will continue its role as the global economy's stabilizer as growth quality improves and the market further opens up.

In manufacturing, China's traditional sector of strength, for example, the government will launch an initiative to shore up weaknesses in major equipment manufacturing and promote the development of integrated circuits, 5G mobile communications, aircraft engines and new energy vehicles.

China is seen having an edge in artificial intelligence (AI), which may shift the landscape of manufacturing of tomorrow.

Robin Li, the founder of search engine Baidu, is a leader in the AI sector. The company is spending heavily on autonomous driving systems.

"I meet strangers who stop me on the street and ask when the self-driving cars can be on the road because they don't want to learn driving," said Li. "AI makes our life easier."

Baidu and its partners gained a good start thanks to China's favorable business climate.

If industry leaders embrace cooperation and open market, the sector would get a further shot in the arm, the Internet tycoon said.

On Monday, the market is assured with a promise of tax cuts.

Premier Li expects the sum of reduced taxes on businesses and individuals in 2018 to amount to 800 billion yuan.

Great numbers of small low-profit businesses will see their income tax halved, and the ceilings on deductible business purchases of instruments and equipment will be significantly raised, he said.

In fact, tax cuts have been a consistent policy over the years.

A total of 918.6 billion yuan was saved last year as the reform to replace business tax with value-added tax (VAT) was carried out.

Considered the biggest tax overhaul in decades, VAT is replacing the business tax, streamlining procedure and avoiding repetitive taxation.