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China steps up support for SMEs

Economy
Measures including financial aid and tax and fee reduction have been rolled out to ease the burdens on the country's small and medium-sized enterprises.

By Zhang Lulu

China SCIOUpdated:  November 23, 2021

China has rolled out a slew of measures to intensify support for small and medium-sized enterprises (SMEs), said Xu Xiaolan, vice minister of industry and information technology, at a policy briefing in Beijing on Tuesday.

The production and operation of SMEs have generally seen stable recoveries this year, Xu said. The revenues of small and medium-sized industrial enterprises above the designated size increased 22.8% year on year in the first three quarters this year, 2.7 percentage points higher than the same period of 2019; and the profits of these enterprises rose 32.5%, recording an increase of 13.2 percentage points from the same period of 2019. 

Xu Xiaolan, vice minister of industry and information technology, attends a policy briefing in Beijing on Nov. 23, 2021. [Photo by Xu Xiang/China SCIO]

But SMEs have also seen slower growth in recent days due to high prices of raw materials, financing difficulties, the COVID-19 pandemic, and power shortages, Xu said. 

The State Council issued a circular recently, putting forward more supportive measures for SMEs including intensifying financial aid, tax and fee reduction, ensuring power supply, and so on. Two documents were also released with the aim of raising the competitiveness of small businesses and supporting SMEs with high growth potentials and advanced technologies. 

The Ministry of Industry and Information Technology will work with other authorities to promote the implementation of these supportive measures to benefit SMEs and raise their confidence and prospects, said Xu. 

China is home to 46 million enterprises, 99% of which are SMEs, Xu said.

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