By Cui Can
China has ramped up support to small and medium-sized enterprises (SMEs) through lowering operational costs, easing difficulties in securing financing and collecting payments, and other policy efforts to help them to tide over difficulties, an official said at a press conference on Wednesday.
China's SMEs got off to a steady start in the first quarter of this year, with the combined revenue and profit of industrial enterprises above the designated size registering a growth of 14.1% and 6.5%, respectively, said Xu Xiaolan, vice minister of industry and information technology.
Xu Xiaolan, vice minister of industry and information technology, attends a policy briefing in Beijing on May 18, 2022. [Photo by Xu Xiang/China SCIO]
Xu also pointed out that SMEs are facing mounting challenges due to increasingly complex and uncertain domestic and international situations, combined with the impact of the recent resurgence of COVID-19. However, she said the fundamentals of China's economy remain unchanged.
In terms of financial support, local governments are encouraged to set up special funds for SMEs and self-employed individuals to mitigate their operational difficulties, Xu said, explaining the funds can be used to offer rent subsidies and pay for utility bills, loan interests, social security premiums, and other costs.
To make it easier for SMEs to access financing, major state-owned commercial banks will work to increase inclusive loans to SMEs by 1.6 trillion yuan (US$ 236.6 billion) this year. The country will also make arrangements for loan extension and renewal as appropriate if SMEs have difficulties in repaying their loans due to the pandemic, according to Xu.
In addition, more efforts will be made to reduce costs and expand market demand. Xu said that the average internet access fees for SMEs will be reduced by another 10%. Pro-consumption campaigns will be encouraged to boost spending on green and smart home appliances, as well as green building materials in rural areas.
