(Economic Observation) China's many arrows are released to bail out small and medium-sized enterprises

　　China News Service, Beijing, November 23 (Reporter Liu Yuying) High raw material prices, insufficient orders, difficult labor and expensive labor, difficult financing, slow payment, high logistics costs... Faced with new situations and new problems, China has recently Three documents were issued in a row, forming a "1+2" ​​long-short policy "combined punch" to support the development of small and medium-sized enterprises.

　　On October 20, the executive meeting of the State Council studied and deployed policies to further increase support for the relief of small, medium and micro enterprises, and required multiple strategies to increase the relief of enterprises in a targeted manner.

　　At the State Council’s regular policy briefing held on November 23, Xu Xiaolan, Vice Minister of China’s Ministry of Industry and Information Technology, introduced that “1” refers to the “Regarding Further Strengthening of Relief and Assistance for Small and Medium-sized Enterprises” issued by the General Office of the State Council. "Notice", "2" refers to the "List of Practical Issues for "Specialized, Special and New" SMEs" and "Measures to Improve the Competitiveness of SMEs" issued by the Office of the Leading Group for the Promotion of the Development of Small and Medium Enterprises of the State Council.

　　According to reports, from January to September this year, the operating income and total profits of small and medium-sized industrial enterprises above designated size increased by 22.8% and 32.5% year-on-year, respectively, 2.7 and 13.2 percentage points higher than the same period in 2019; employees of small and medium-sized industrial enterprises above designated size 50.102 million, accounting for 68.2% of employees in industrial enterprises above designated size.

　　At the same time, Xu Xiaolan said that recently due to factors such as high raw material prices, insufficient orders, difficult labor and expensive labor, difficult financing and slow payment, high logistics costs, the spread of the new crown pneumonia epidemic, and power shortages, the growth rate of SMEs’ ​​main operating indicators has slowed down. In September, the operating income and total profits of small and medium-sized industrial enterprises above designated size increased by 11.2% and 3.6% year-on-year respectively, and downward pressure has increased.

　　The newly issued "Notice on Further Increasing Relief and Assistance for Small and Medium-sized Enterprises" addresses the outstanding problems encountered in the recent development of small and medium-sized enterprises, and proposes to increase financial support for relief, further promote tax and fee reduction, and be flexible and precise. 9 specific measures such as the use of a variety of financial policy tools and the promotion of alleviating the pressure of rising costs.

　　The "List of Practical Work for "Specialized, Special New" SMEs" proposes covering fiscal and taxation support, credit support, direct financing support, industrial chain collaborative innovation, innovation capability enhancement, digital transformation, talent and intelligence support, assistance in market development, and precise docking services , 10 practical facts and 31 specific tasks including activities of 10,000 people helping 10,000 enterprises.

　　The "Measures to Improve the Competitiveness of SMEs" focuses on innovation leadership, financing support, digital development, green development, quality and management, and talent quality, and proposes 11 aspects and 34 measures.

　　Prior to this, China has introduced many policies and measures to help small and medium-sized enterprises.

According to Liang Zhifeng, director of the Bureau of Small and Medium-sized Enterprises of the Ministry of Industry and Information Technology, in the first three quarters of the country’s newly increased taxes and fees were reduced by 910 billion yuan (RMB, the same below), and 70% of small and micro enterprises with operating cooperation income do not need to pay taxes.

　　According to estimates, reducing the payment handling fees of small and micro enterprises and individual industrial and commercial households will reduce the handling fee expenditures for market entities by approximately 24 billion yuan each year.

A questionnaire survey by the Ministry of Industry and Information Technology showed that 42.1% of loan companies reported enjoying preferential interest rates.

　　In terms of "giving more", this year the central government has newly added funds to support the high-quality development of "specialized, special, new". Currently, it has allocated 3.5 billion yuan to support the high-quality development of more than 1,300 "little giants" enterprises, and arranged 3 billion yuan for continued implementation. Small and micro enterprise financing guarantee fee reduction policy.

　　Zou Lan, Director of the Financial Market Department of the People’s Bank of China, introduced that from 2020 to October this year, banks have accumulatively deferred debt and interest payments of 14.4 trillion yuan, including support for small, medium and micro enterprises to defer debt and interest payments of 11.8 trillion yuan. Inclusive of small and micro credit loans of 9.1 trillion yuan.

　　In the next step, the People's Bank of China will make good use of the newly-added 300 billion yuan of small-scale re-loan lines, make good use of carbon emission reduction support tools, and 200 billion yuan of special re-loans for clean and efficient use of coal to promote the green and low-carbon transformation of small, medium and micro enterprises.

　　The Ministry of Industry and Information Technology will pay close attention to the production and operation of small and medium-sized enterprises, pay attention to new issues, study and judge new trends, strengthen policy research reserves, and promote the timely conversion of some phased enterprise-benefit policies into long-term policies.

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