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BRUSSELS, Feb. 29 (Xinhua) -- China and the European Union (EU) here on Monday signed a reciprocal short stay visa waiver agreement for holders of diplomatic passports.

Xi made the remarks during an inspection tour of the National Defence University (NDU) of the People's Liberation Army (PLA), the country's top military academy.

We will actively promote reforms of the fiscal and financial systems. For example, business tax will be replaced with VAT in all sectors, a major step of structural reform that will save businesses more than RMB500 billion in tax. This will not only help us form a consistent tax system and eliminate double taxation. More importantly, it will strongly boost the development of the service industry, especially high-end services, such as R&D, and support the transformation and upgrading of the manufacturing sector. Most enterprises will benefit from the tax reduction to varying degrees, and small and micro businesses will see their tax burden significantly lightened. In times of fiscal difficulties, the government is doing this to release more water to nourish the fish in the pond, i.e. to generate continued momentum of growth with a short-term drop in fiscal revenue. It is also indicative of the room for fiscal flexibility left at our disposal. Let me give you another example. For reforms in the financial sector, we can explore market-based approaches for debt-for-equity swap to help lower corporate leverage ratio.

The statement said the Communist Youth League Central Committee "has not studied the spirit of the CPC's conference on improving mass organizations in-depth and translated it into daily work... has not resolutely carried out reforms and innovation through concrete measures..."

The enactment of the new Charity Law, which is going to take effect on Sept. 1 this year, is another step by China in encouraging the growth of the charity sector and will encourage the growing rich population of China to donate to causes supporting the poor, said Munene Macharia, a scholar at the Nairobi-based United States International University.