Since the outbreak of the novel coronavirus (COVID–19), China has made much efforts on macro control, focusing on both the epidemic prevention and control and the economic and social development.

The country introduced proactive fiscal policies and prudent monetary policies; counter cyclical macroeconomic policies have also been launched, in a bid to hedge the impact of the epidemic and ensure the smooth operation of the economy.

Wei Tao, Director of Operations at Shenzhen Pureatic Electronic Technology Co., Ltd., manufacturer of floor-sweeping robots, has kept an account: in February and March this year, as three types of social security fees were exempt, 65,000 yuan (about 9,214 U.S. dollars) could be saved.

Meanwhile, Wei found out that the basic electricity and management fees were exempt from 12,000 yuan, while value-added tax was exempt from 300,000 yuan in the first quarter.

"The increased reduction of taxes and fees has strengthened our ability to cope with external shocks," said Wei, adding that cash flow is the lifeline of small and medium-sized enterprises, and the sum of money can help companies make up for foreign trade losses, strengthen technological innovation, and promote the orderly recovery of production and operation.

In addition to greater tax relief, China’s financial services have also become more targeted. Thanks to the 300 billion yuan of special re-loans set up in the early stage, 5,881 key enterprises have been provided with a total of 228.9 billion yuan of preferential interest loans as of March 30, with an actual financing rate of about 1.3 percent.

An additional 500 billion yuan has been allocated for re-lending and rediscount, and local banks with legal entities have provided assistance to 351,400 enterprises, with a total of 276.8 billion yuan in loans at favorable interest rates.

"In the next step, prudent monetary policies should pay more attention to flexibility and moderation," said Liu Guoqiang, deputy governor of the People's Bank of China, noting that China should give more prominence to supporting the recovery and development of the real economy.

China announced the issuance of special treasury bonds 13 years after the last issuance in 2007, as one of the means to combat the negative impact from the COVID-19 pandemic.

"It is necessary and feasible to issue special treasury bonds in special periods," commented Zong Liang, chief researcher at the Bank of China, stressing that the move will consolidate and boost market confidence in the face of the epidemic and better maintain the stable operation of the economy.