(Yicai Global) June 17 -- China will embark on a new round of cost reductions in the amount of CNY300 billion (USD43.3 billion) starting July 1. 

Fees will be slashed on average commercial- and industrial-use electricity and network traffic, according to the country's cabinet the State Council.

The development fund that China's civil aviation agency collects from airlines will also drop by 50 percent starting July 1. 

China's National Development and Reform Commission has issued a series of measures, the first of which kicked in on April 1, with the second to take effect July 1. Implementation of the two targets a 10 percent drop in the average costs of industrial and commercial electricity.  

The southwestern Chinese province of Sichuan projects the fee cuts may ease the burden of power fees on light industrial enterprises by about CNY3.6 billion, or 11.7 percent, while the country's southern economic powerhouse of Guangdong province may save 10.2 percent at CNY10.8 billion.

Lower electrical costs will mostly benefit high energy-use firms, said Prof. Sun Chuanwang of the School of Economics, Xiamen University. Consumer goods have lower electricity costs, and thus the effect on the majority of users will be quite limited, he added.  

Decreased logistics costs in the transport field are projected at CNY121 billion this year. 

Editor: Ben Armour