Last month, China revealed that the country will cut a list of taxes in an effort to support “small and micro firms and high-tech companies.”  With an ever growing middle class and overall population amassing record wealth, the new tax cuts should continue China’s trend of success.  In addition a small push for less government regulation seems to be gaining more traction with the new announcement as well.

The Chinese government is “expected to cut more than 60 billion yuan ($9.5 billion) in taxes for small and high-tech companies” in 2018 with many hoping more will follow.  With a large portion of the population working small and medium-sized businesses, efforts like this go a long way in maintaining social and economic stability.

This new announcement comes less than a year after China’s government extended a tax exemption for small firms with monthly sales of less than 30,000 yuan (US$4,520) for three more years and only a month after American President Trump’s disastrous tariffs against the country which saw stock prices drop dramatically.

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