China rolls out policy to promote SMEs
Sunday, 27 September 2009
China's State Council, the Cabinet recently issued a document to strengthen support for the development of the country's small and medium enterprises (SMEs), reports Xinhua.
The government will deepen reforms in the country's monopoly industries, lowering the market access threshold for the SMEs and creating a more open and fair competition environment for SMEs, said the document.
According to the document, the government will optimize its procurement mechanism, raising the purchase proportion of commodities, engineering and services from the SMEs.
The government will grant a one-year reprieve on social security fund to the SMEs in operational difficulty amid the global financial crisis, in a bid to reduce financial burdens and protect the interests of the SMEs.
It will expand channels for the SMEs to raise capital through encouraging banks to lend more to the SMEs, stepping up making policies to guide private capital to tap into the country's financial system.
The government will increase tax breaks to the small firms with an annual taxable income below 30,000 yuan ($4392.4) from Jan 1 to Dec 31 of 2010.
According to the document, the government will also encourage the SMEs to improve their technological innovation capacities, enhance the product quality, and promote development in energy conservation and clean production.
In China, SMEs refer to enterprises where staff numbers are less than 2,000, annual revenues are under 300 million yuan, or with total assets under 400 million yuan.
The move followed a framework announced by the government in August to shore up the SMEs hit by the global economic downturn.
The government will deepen reforms in the country's monopoly industries, lowering the market access threshold for the SMEs and creating a more open and fair competition environment for SMEs, said the document.
According to the document, the government will optimize its procurement mechanism, raising the purchase proportion of commodities, engineering and services from the SMEs.
The government will grant a one-year reprieve on social security fund to the SMEs in operational difficulty amid the global financial crisis, in a bid to reduce financial burdens and protect the interests of the SMEs.
It will expand channels for the SMEs to raise capital through encouraging banks to lend more to the SMEs, stepping up making policies to guide private capital to tap into the country's financial system.
The government will increase tax breaks to the small firms with an annual taxable income below 30,000 yuan ($4392.4) from Jan 1 to Dec 31 of 2010.
According to the document, the government will also encourage the SMEs to improve their technological innovation capacities, enhance the product quality, and promote development in energy conservation and clean production.
In China, SMEs refer to enterprises where staff numbers are less than 2,000, annual revenues are under 300 million yuan, or with total assets under 400 million yuan.
The move followed a framework announced by the government in August to shore up the SMEs hit by the global economic downturn.