CHINA plans to innovate monetary policy tools that will benefit Chinese companies by lowering financing costs for firms, Premier Li Keqiang said Tuesday.

    China will also “reasonably” increase tax breaks to help companies, Li said. In addition, China will implement a policy of equalizing electricity prices for industrial and commercial users, he added.

    Li said China faces challenges in hitting its goal to boost per capita GDP to US$12,000 by 2020 to avoid the middle income trap, as growth is expected to remain sluggish and the domestic economy could be hampered by structural problems.

    (SD-Agencies)