The Poster News APP:

Some small and medium-sized businesses have been hit hard by the COVID-19 pandemic. What specific measures has the finance ministry taken to support those enterprises? Thank you.

Liu Kun:

Vice minister Yu Weiping will answer this question. 

Yu Weiping:

Micro, small and medium-sized enterprises prop up economic and social development and play an indispensable role in creating jobs, promoting technological innovations, and improving people's livelihoods. 

Due to the impact of COVID-19, some small and medium-sized enterprises are facing difficulties with production and operation. The MOF has worked out and introduced a series of policies in accordance with the decisions and plans of the CPC Central Committee and the State Council to help them overcome difficulties, revive, and achieve better development.

First, we have reduced the tax burden on small and medium-sized enterprises. We continue to cut taxes and fees, postponing the payment of all the domestic value-added tax and corporate income tax for small and micro manufacturing enterprises, and postponing the payment of 50% of those taxes for medium-sized manufacturing enterprises. We have extended the validity period of the policies on temporarily reducing the premiums for unemployment insurance and workers' compensation insurance. We cut about 1.1 trillion yuan of taxes and fees last year, as Mr. Liu just said, and micro, small, and medium-sized enterprises benefited the most from it.

Second, we have alleviated the difficulty and high cost of financing for micro, small, and medium-sized enterprises. In 2021, the central government allocated 3 billion yuan of funds for rewards and subsidies to support the expansion of the scale of financing guarantees and the reduction of guarantee fees for small and micro enterprises . The reduction of financing guarantee fees for market entities surpassed 10 billion yuan throughout the year. We have continued offering greater financial support to subsidize interest payments on guarantee loans for business startups . In 2021, the central government made 6.34 billion yuan in funds available for subsidizing the interest payments and for rewards and subsidies, up 65.9% year on year. We have supported the construction of demonstration zones for inclusive finance to improve the financing environment for micro, small, and medium-sized enterprises.

Third, we have supported the high-quality development of those small and medium-sized enterprises which specialize in a niche market and boast cutting-edge technologies . From 2018 to 2022, the central government allocated about 9 billion yuan for innovation and entrepreneurship of small and medium-sized enterprises. In 2021, it offered funds for rewards and subsidies to support the development of small and medium-sized enterprises which specialize in a niche market and boast cutting-edge technologies, realizing the nationwide coverage of such "little giant" firms . At present, there are over 300 listed "little giant" firms. Their average growth rates of operating revenue and net profit in the past two years both exceeded 25%, about twice the average of all listed companies.

Next, the MOF will focus on helping micro, small, and medium-sized enterprises overcome difficulties and achieve better development. We will further step up tax cuts, and use financing guarantees, subsidies for interest payments on guarantee loans, and rewards and subsidies to guide and mobilize financial resources towards micro, small, and medium-sized enterprises so that they show greater vitality. Thank you.