China would implement large-scale tax cuts, according to the annual Government Work Report. Experts believed reducing tax burdens on enterprises would be crucial for stimulating manufacturing sectors and SMEs, as well as promoting China's economic growth.

The government this year will reduce the tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan (about 298 billion U.S. dollars).

Tao Jingzhou, managing partner of Dechert, considered tax cut as “a must” to boost economic development. “Since some years, the premier has voiced for the tax cut. But to build up such process, you have to wait until all administrations really move towards the same direction… Now they realized that the tax cut is a must,” he told CGTN.

Meanwhile, Tao stated that a three-percent tax cut is beyond most expectations, and the government might work hard to balance economic growth and its expenditures. “That's why maybe three percent is a maximum the government can do for now,” he added.

Echoing Tao's idea, Tony Dong, founder of the Sino-International Entrepreneurs Federation, defined tax cut as a “necessary instrument” to accelerate economic growth.

Meanwhile, Dong advised more tax cut in the future, projecting that more tax cut would help encourage the development of the manufacturing sector and SMEs.

He Weiwen, a senior fellow at the Center for China and Globalization, shared a similar opinion with CGTN: “Cut in taxes and burdens for business is very crucial.”

He explained that China needs to assure both production and consumption, due to internal and external pressures.