New govt policy may help China firms save 150b yuan a year

Beijing

COMPANIES in China may save up to 150 billion yuan (S$30.5 billion) a year if they are allowed to contribute less to employees' social security and housing plans, a research institute at the top economic planning agency said on Monday.

China aims to cut financing, labour, energy and logistics costs and reduce the annual tax burden for firms over the next few years, the government said last week, as policymakers try to offset the impact of a prolonged economic slowdown.