China to improve policy support for SMEs

BEIJING -- China will further improve supportive policies to help small and medium-sized enterprises (SMEs) tide over difficulties, according to a circular released by the General Office of the State Council.

SMEs are the main force behind national economic and social development, but they are facing rising corporate costs and operational difficulties due to higher raw material prices, high logistics costs, sporadic resurgences of COVID-19, and power cuts in some areas, among other factors, the document noted.

The circular outlined relief policies such as increasing funding support, furthering tax and fee reductions, and providing support with financial policy tools in a flexible and precise manner.

Manufacturing SMEs will be permitted to defer certain tax payments for the fourth quarter, while small and micro enterprises severely impacted by the pandemic, floods and raw material price hikes will receive more lending support.

The document also stressed the importance of efforts to help SMEs ease pressure from rising production costs, secure the power supply, support small firms in stabilizing and expanding employment, ensure the collection of SMEs' due payments, and boost market demand.

All departments and local authorities shall take on further responsibilities, make bold changes and innovations, help SMEs cope with difficulties, and ensure that all policies and measures are well implemented, it said.