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Around 20 percent of landlines were working on Monday, an AFP reporter said. But mobile phones and the internet remained severed.

Arne Sorenson, CEO of hotel operator Marriott international, told the Financial Times that companies and conferences were choosing to host events in other countries "due to the uncertainty over restrictions on entry" to the US.

As 2018 marks the first year to implement the spirit of the 19th CPC National Congress, Xi said this year is also crucial to secure a decisive victory in building a moderately prosperous society in all respects and implement the country's 13th Five-Year Plan (2016-2020).

As Chinese currency is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by trade surplus and foreign investment in the country, adding funds to the money market.

As Leung explained, equipment manufacturing as well as research and development are included in the Made in China 2025 strategy. These companies usually invest heavily in their early days in machines, plants and all other related facilities. It will take a long time before they finally register sales and profits. With the new policy, the VAT can be retained, which means that companies can enjoy a tax rebate when they eventually report sales results. It can largely secure their cash flow and relieve this tax burden.