Vice-Premier Liu He, head of the State Council’s leading group on the development of small and medium-sized enterprises, hosted the third group meeting on July 25.

The group heard a report on the general development of small and medium-sized enterprises (SME) by the Ministry of Industry and Information Technology, and learned about the implementation of a guideline on SME promotion issued in April by the General Office of the CPC Central Committee and the General Office of the State Council.

Despite a strong momentum, SMEs are still facing challenges under downward economic pressures, the meeting said.

All local governments are asked to attach greater importance to these enterprises, the development of which should be deemed crucial for the stability of economic growth, employment and social development, the group said.

Favorable policies such as tax cuts and fee reductions must be put into practice for the benefit of enterprises, they said, adding that efforts are needed to clear delinquent accounts to private and SMEs as scheduled.

Consolidating the basis of SMEs with better credit and statistics systems, and making them more competitive by increasing professional capabilities were also urged.