China to enhance financial support for small businesses

China will take market-oriented approaches to strengthen financial support for micro, small and medium-sized enterprises, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday.

Micro, small and medium-sized enterprises and self-employed individuals face great difficulties at present, the meeting noted, urging efforts to support market entities and address new downward economic pressure.

The meeting decided that the inclusive loan repayment extension support tool for micro and small enterprises will be replaced with an inclusive loan tool.

Inclusive credit loans for micro and small firms will also be incorporated into the relending plan targeting agriculture and small enterprises from 2022.

Wednesday's meeting also said that a national financing credit services platform will be established to improve financing services for micro, small and medium-sized enterprises. Financial institutions will be encouraged to issue special financial bonds for small and micro enterprises.

The meeting also called for the specification of measures to increase support for China's manufacturing sector and facilitate the steady development of the real economy.

Priority should be given to manufacturing firms when implementing tax and fee cut policies, and the scale of medium and long-term loans and credit loans for the sector should be expanded, the meeting said.

Efforts should also be made to accelerate the digital transformation in the manufacturing sector, support foreign companies in increasing investment in medium and high-end manufacturing and research centers, and ensure the stability of industrial and supply chains.