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China to strengthen relief efforts to support SMEs

Updated: Nov 22,2021 18:31

China decided to strengthen support to ease burdens on small and medium-sized enterprises (SMEs), according to a circular released by the General Office of the State Council on Nov 22.

Local authorities are encouraged to allocate relief funds for SMEs in order to ease their cost burdens in rent and utility bills, while subsidies will be offered to cope with the rising costs of raw materials, logistics and labor forces, said the circular, adding wider financing guarantee businesses will be supported to lower the cost for micro and small-sized enterprises.

According to the circular, micro, small and medium-sized enterprises in manufacturing could postpone their payment of some taxes and fees in the fourth quarter, while levying tax and fees will be regulated to ensure preferential policies are accessible to these enterprises.

More flexible and targeted relending and rediscounting policies will be intensified for SMEs and measures will strengthen support for the liquidity loans of micro and small enterprises affected by the COVID-19 pandemic, flooding disasters and surging costs of raw materials.

To alleviate cost burdens on enterprises, monitoring and early warning on prices of bulk commodities and regulation of the market supply and demand will be strengthened, and price manipulation will be severely punished.

Meanwhile, the power supply for enterprises should be guaranteed by building an integrated system of power generation, supply and storage.

Enterprises will be supported in stabilizing and expanding jobs, and more regulations will be rolled out to deal with complaints of SMEs on payments. Meanwhile, the payments of large enterprises to SMEs will be closely monitored.

As part of the efforts to expand market demand, investment in sectors involving people’s livelihoods and new types of infrastructure will be increased, large enterprises will be encouraged to expand their procurement from SMEs, and development of overseas warehouses will gain speed to ensure the smooth operation of industrial and supply chains for foreign trade.