“At present, the downward pressure on the economy continues to increase, which is difficult for many activitiesHe said after a regular meeting.

The Chinese economy is being punished by the strict containment measures implemented by the Chinese authorities to stop the COVID-19 pandemic.

Beijing will expand tax breaks to more sectors and increase annual tax cuts by more than 140 billion yuan (19.78 billion euros) to 2,640 billion yuan, according to the government.

State media reported that China also plans to cut taxes on the purchase of certain passenger cars worth up to 60 billion yuan.

The government said that the authorities will postpone until the end of this year the payment of social contributions by small and medium-sized businesses, individuals and some severely affected sectors, including pension contributions.

Banks will also give deadlines for some loans, including auto loans and consumer loans.

The government also pledged to increase the frequency of domestic and international flights.

In April, the Politburo announced measures to help industries and small businesses affected by the coronavirus, to boost investment and speed up infrastructure construction.