While in Russia from year to year, gasoline prices are only growing, and regardless of whether more expensive or cheaper oil, the government of neighboring China for the second time since the beginning of the year found a way to reduce retail prices as at him, and diesel fuel.
As reported by Chinese newspaper Renmin Ribao, the state Committee for Affairs of development and reforms of China announced the decision to reduce the price per ton of gasoline by 80 yuan, and for diesel fuel to 70 yuan. This decision was made in the conditions of slowdown of the Chinese economy suffering from a trade war with the United States.
“In accordance with the applicable pricing mechanism, if international crude prices change more than 50 yuan per ton and continue at that level within 10 working days, in the domestic market of China, prices of such petroleum products as gasoline and diesel fuel will be adjusted accordingly,” notes finanz.ru.
The Committee on Affairs of development and reforms also demanded that leading Chinese oil companies, including PetroChina, Sinopec and CNOOC, to work to ensure stability in the market supply and implementation of national pricing policy.
The current decline in prices of petroleum products in China is not the first – at the beginning of the year, retail prices for gasoline and diesel fuel have been reduced and at 370 and 355 yuan respectively. Also from 1 April, China reduced the VAT rate (from 16% to 13% for the manufacturing industry, sphere of transport and transportation, construction and other sectors from 10% to 9%), and may 1 – rate social insurance. In total, the tax burden on the economy was reduced by 2 trillion yuan, or 285 billion dollars a year.
Also in the beginning of the year the people’s Bank of China announced new measures to support small business as it relates to this sphere of enterprises with loans amounting to 10 million yuan (1.5 million dollars) – previously the upper limit was 5 million yuan. Its increase has freed up resources for lending to small enterprises: for banks issuing such loans, are eligible for a standards according to the rule of reservation.
In General we can say – the recipe of the ongoing “Chinese economic miracle” is clear and simple and described by many economists. And it is not cheap labor, as it was at first. However, in Russia, for some reason, more talk about the Chinese way of development than trying to study more in detail the real Chinese experience.