Xinhua Finance:

We have noted that the newly revised "Measures for the Administration of the Gradient Cultivation of High-Quality Small- and Medium-sized Enterprises" officially came into effect on April 1. What changes are there from the interim measures issued in 2022? How will the development of SMEs that use specialized and sophisticated technologies to produce novel and unique products be further promoted? Thank you.

Zhang Yunming:

Thank you for your questions. I would like to invite Ms. Tao to answer them.

Tao Qing:

Thank you for your questions. SMEs are an important force in promoting innovation, boosting employment and improving people's well-being. Since the beginning of this year, steady progress has been made in the economic operation of SMEs, with accelerated production and improved efficiency. In the first quarter, high-quality SMEs, represented by "little giant" enterprises that use specialized and sophisticated technologies to produce novel and unique products, performed excellently, with the value added of those above designated size increasing 10.2% year on year.

Developing into specialized and sophisticated enterprises that produce new and unique products is the only path for SMEs to ensure high-quality development. The MIIT has accelerated the construction of a gradient cultivation system for high-quality SMEs, featuring unified standards, orderly articulation and precise services. On April 1 this year, we launched the "Measures for the Administration of the Gradient Cultivation of High-Quality SMEs," which mainly includes three aspects. First, is improving the cultivation system. A gradient cultivation system for high-quality SMEs, consisting of basic tier, backbone tier and core tier, has been established, and technology-based SMEs have been included in the system. A sound mechanism for proactively discovering high-quality enterprises has been established, and potential enterprises have been proactively identified based on data on industrial and supply chains, equity investment, and intellectual property rights. Second, is optimizing the identification standards. The measures adopt a unified national standard on the identification of specialized and innovative SMEs across regions, introduce an evaluation system for their development, strengthen dynamic management, and guide them toward high-quality development. Third, is enhancing cultivation services. Guidance is being provided for local governments to make good use of various support policies. Precise services will be provided to enterprises of different types and at different stages. The ability to enjoy preferential policies directly, rapidly and without the need for application will be promoted for enterprises, so that the policies are visible, accessible and usable.

Next, the MIIT will accelerate the establishment of mechanisms to promote the development of SMEs that use specialized and sophisticated technologies to produce novel and unique products, focusing on three key aspects to support the high-quality development of SMEs. First, we will build the strength of enterprises through innovation. We will implement a three-year action plan for the gradient cultivation of high-quality enterprises, launch an entrepreneurship support program for AI-driven SMEs, and issue a special action plan for empowering SMEs with inclusive computing power. We will support qualified localities to explore the construction of empowerment centers for specialized and sophisticated SMEs, conduct assessments of the supply chain support capabilities of specialized and sophisticated SMEs, continuously enhance the innovation capabilities of enterprises, and give full play to their role in consolidating the foundation and strengthening the industrial chain. Second, we will optimize the business environment to vitalize enterprises. We will publicize and implement the SME promotion law, release the 15th Five-Year Plan for SME development, establish the second phase of the National SME Development Fund, conduct assessments of the development environment for SMEs, and foster a favorable development ecosystem. Third, we will provide services to help businesses. We will establish national demonstration platforms and bases for public services for SMEs, jointly launch special talent service initiatives with multiple departments, and hold a publicity month of laws and policies, promoting more services to directly reach SMEs. Thank you.