5 March 2017, Beijing - Chinese Premier Li Keqiang delivered the Report on the Work of the Government of 2017 at the Fifth Session of China’s 12th National People’s Congress, mentioning the administration will continue to support the development of SMEs.
He summarised that it was not easy to accomplish the work in last year, but the government succeeded in making a good opening of the 13th Five-Year Plan.
The government report puts forward several methods in supporting SMEs, including improving access to finance, additional support for innovative science and technology SMEs, cutting rates for broadband services for small and medium technology enterprises and developing a full range of services that are accessible to the general public for the entire business set-up and innovation process.
Miao Wei, Minister of Ministry of Industry and Information Technology (MIIT), answered specific questions on how to provide SMEs with better access to finance in China at the press conference during the ‘Two Sessions’. He said that the government will address the problem of SMEs being unable to access loans or having to pay high interest to secure loans from four aspects:
- To carry out three-year special action of SME accounts receivable financing in conjunction with the People's Bank, guide large enterprises to positively and truthfully confirm the amount of money owed to small micro enterprises, as well as facilitating SMEs to finance accounts receivable;
- To cooperate with the Ministry of Finance to speed up the construction of the guarantee system, encourage to set up guarantee companies for SMEs loans to provide credit guarantee, implement guarantee companies the pre-tax deduction policy of reserve and the exemption of VAT policy;
- To further play the role of the existing development fund for SME, to guide and drive social capital, and support the development of SMEs of seed period and growth type of start-up period;
- To implement the requirements from ‘Promoting the Development Planning of Inclusive Financial’, published by the State Council, help improve the ability and skill of financing and raise the ability of loans acquirement.
The government report said that China successfully kept the development of economy steadily and upward, creating tens of thousands of new employments, increasing the per capita disposable income.
For the target of this year, China will aim to keep increasing the GDP and stabilise the CPI; improve the urban employment; reduce corporate tax burden and charges; reduce the rural poor and deepen the reform of household registration system.
As for the main tasks of this year, China will strive to cut overcapacity, address the concern about housing issue, and lower the operation cost of companies. Besides, state-owned enterprise reform, infrastructure investment, promotion of consumption and innovation, environmental protection and medical hygiene were also mentioned in the report.
To read the full text of Government Report in Chinese, please see here.
For the English translation of the Government Report, you can find it here.