China beefs up support for MSMEs through targeted policy measures

The comments came after the ministry of industry and information technology unveiled a guideline last month with measures, including tax refunds, fee reductions, reduced rents and cheaper and more accessible financing for MSMEs, along with policies to boost collaboration on innovation between smaller and larger enterprises.

Local authorities are encouraged to adopt temporary preferential policies on electricity prices for MSMEs and self-employed households. Moreover, their supplies of water, electricity and gas will not be cut off due to arrears, and the companies have received a six-month extension to pay their utility bills, according to official Chinese media.

They will also receive a further 10 per cent discount on their broadband service rates. All outstanding value-added tax credits will be refunded to MSMEs and self-employed households by June 30.

The guideline confirmed that large state-owned banks will add over 1.6 trillion yuan ($240 billion) in inclusive loans for MSMEs this year.

Banks should renew loans, extend and adjust repayment arrangements and waive default interest for MSMEs and self-employed households as appropriate, and credit scores should not be affected by the changes.

In addition, the guideline urged governments to earmark special relief funds for MSMEs and self-employed households to subsidise rental and guarantee fees and interest for those having financial difficulties.

ALCHEMPro News Desk (DS)