The Yangtze River Industrial Economic Think Tank Offline Seminar (2ed session) was successfully held on August 27, 2017 at the Suzhou Jinke Hotel. The theme of this offline seminar is “Future China’s New Growth Driver and New Industries”. This issue shows the keynote speech of researcher Yang Zhiyong from the National Academy of Economic Strategy, Chinese Academy of Social Sciences.First, we should understand the impact and function of the tax policy through two things: (1) After the implementation of the “VAT reform policy”, pharmaceutical companies need to issue invoices, resulting in loss of profits for pharmaceutical companies and pharmacies’ intermediaries; (2) When society is in a state of low desire, tax policy stimulus, development of new growth driver and other measures are unable to promote economic increase.At present, the new normal of China’s economy presents three major characteristics: slowing down, sustainable, and in need of further grow. The new growth driver needed for economic growth mainly refers to innovation in people, industries, and systems. It can also be said to be technological innovation and human capital innovation. Therefore, the tax policy that promotes the formation of new growth driver should be a tax policy that promotes innovation.
