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China outlines more controls on exports of rare earths and technology

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  Published in Science and Technology on Thursday, October 9th 2025 at 8:40 GMT by WSB-TV
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China Outlines New Measures to Boost Growth, Secure the Future – A Deep Dive into the Latest Economic Blueprint

In a comprehensive policy announcement that has already begun to ripple through global markets, the Chinese government released a suite of new measures designed to stimulate domestic demand, shore up economic resilience, and align the country’s development trajectory with long‑term sustainability goals. The announcement, made by the State Council in a televised briefing on Monday, details a series of fiscal, regulatory, and social initiatives that aim to keep China’s growth engine running strong amid a challenging global environment.

1. Fiscal Stimulus: “Expanding the Foundation of Growth”

At the heart of the package lies a bold push to expand fiscal spending and tax incentives. The government will increase its capital‑expenditure budget by 4% in 2024, targeting infrastructure projects that support the high‑speed rail network, rural electrification, and smart‑city initiatives. This is accompanied by a 15% reduction in corporate income tax for small and medium‑enterprise (SME) owners whose annual turnover is below RMB 20 million. A new subsidy program will also grant RMB 1–3 million to firms investing in research and development (R&D) in the fields of artificial intelligence, biotechnology, and renewable energy.

The announcement came at a time when China’s GDP growth has slowed to 5.3% in the first quarter of 2024—its lowest in two decades. Premier Li Qiang noted that “the pace of domestic consumption must be accelerated to offset the decline in export demand” and emphasized that the government’s fiscal stimulus is “meant to fill the supply‑side gaps that have emerged since the pandemic’s lift‑off.”

2. Regulatory Reforms: Simplifying Rules, Accelerating Innovation

China’s regulatory environment has been the subject of intense scrutiny by foreign investors. The new measures aim to ease the business environment through a “one‑stop” approval portal for new ventures, shortening the review period for construction permits from 60 days to 30. In the tech sector, the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) will loosen restrictions on fintech data sharing, permitting cross‑border transfers of non‑personal data under strict safeguards.

The Commerce Ministry released a white paper outlining a “flexible framework for foreign direct investment (FDI)” that will allow 10% more sectors to welcome foreign capital. This includes a new “incentive zone” in the Yangtze River Delta where foreign investors will receive double the tax rebates for the first five years of operation.

These regulatory tweaks arrive as China seeks to re‑assert itself as a leader in high‑technology manufacturing, while also keeping pace with the global push toward digital economies.

3. Green Transition: Accelerating Carbon‑Neutral Goals

Perhaps the most striking part of the package is its ambitious environmental agenda. China will increase its renewable energy capacity by 50 GW in 2024, a step that will bring the country closer to its 2060 carbon‑neutrality pledge. The new policy includes:

• Subsidies for solar panel manufacturers, guaranteeing a minimum purchase price for domestic solar modules.
• A carbon pricing mechanism that will gradually increase the price of emissions credits in 2025.
• Incentives for the production of electric vehicles (EVs), including a 20% tax credit for EV buyers and subsidies for battery production.

Minister of Ecology and Environment Wang Yi stated, “The green transition is not only a moral obligation but also a strategic imperative that will unlock new growth opportunities.”

4. Data Security and Technology Sovereignty

In line with China’s focus on data sovereignty, the new policy introduces tighter controls over cross‑border data flows. Companies that handle sensitive personal data must now conduct a “data security risk assessment” before transferring data overseas. The policy also sets up a new “data protection authority” that will enforce penalties of up to 2% of a firm’s annual revenue for violations.

The Ministry of Industry and Information Technology (MIIT) has indicated that it will support the development of a Domestic Secure Network (DSN), a closed‑loop system designed to protect critical infrastructure from foreign cyber‑attacks.

5. Social and Demographic Measures

China’s demographic challenges are front and center. The policy includes a new “Family Encouragement Package” that will offer:

• A RMB 30,000 maternity grant for families with a second child.
• Free health check‑ups for children under five.
• An expansion of the “Rural Revitalization” initiative to provide broadband access to 90% of rural households by 2026.

This approach reflects the government’s commitment to balancing economic growth with social stability, recognizing that an aging population could undermine long‑term productivity.

6. Implications for Global Markets

The measures have already sparked speculation among analysts about their impact on global supply chains. The increased focus on domestic manufacturing could shift the balance of production toward China, potentially reducing reliance on overseas suppliers. Moreover, the regulatory easing for foreign investors could make China a more attractive destination for capital inflows, especially in high‑tech sectors.

However, the new data security rules could create friction with multinational corporations that rely on seamless cross‑border data flows, prompting some to re‑evaluate their supply‑chain footprints.

7. Additional Resources

The State Council’s official press release, available on the government’s website, offers a detailed breakdown of the fiscal allocations and regulatory changes. The Ministry of Commerce’s “FDI Incentive Framework” white paper, linked within the article, provides in‑depth guidance for foreign investors. Meanwhile, the Ministry of Ecology and Environment has published a technical appendix outlining the methodology for its upcoming carbon pricing mechanism.

Conclusion

China’s latest policy package signals a multi‑faceted approach to steering the country through a period of transition and uncertainty. By combining fiscal stimulus, regulatory reform, environmental ambition, data protection, and social welfare, the government aims to maintain a resilient, sustainable growth path. While the measures bring new opportunities for domestic and foreign stakeholders, they also demand a careful recalibration of strategies to navigate an increasingly complex regulatory landscape.

As global markets digest these developments, the world will be watching closely to see how China balances its economic ambitions with the imperatives of sustainability and social cohesion—an equation that will shape not only China’s future but also the broader global economy.