星期四 , 9 7 月 2020
首頁 / English / Mainland China News / ‘Two sessions’ prospects:China launches new policies to help SMEs get out of trouble

‘Two sessions’ prospects:China launches new policies to help SMEs get out of trouble

Site of the NPC and CPPCC over the years (Photo by Li Tao / Xinhua)

 

At the time when the NPC and CPPCC are about to be held, how the government guarantees the development of small and medium-sized enterprises (SMEs) has attracted much attention.

As an important part of the national economy, SMEs have created 80% of the jobs, but it is precisely this part of enterprises that have suffered the most during the spread of the epidemic. Due to the weak ability to resist risks, a large number of SMEs have encountered operational difficulties due to the breakage of cash flow, raw materials, and sales channels.

Economists generally expect that the NPC and CPPCC will send a clear signal that they will attach equal importance to the development of SMEs and are expected to launch a new policy to assist the SMEs to get out of trouble.

The epidemic has had a wide, deep, and long-lasting impact on the global economy. The downward pressure on China’s economy has increased unprecedentedly, with SMEs being the hardest hit.

Wang Xiaolu, deputy director of the National Economic Research Institute, said that SMEs faced double difficulties of weak growth and the impact of the epidemic. Nearly a third of private companies are likely to be losing money.

Xu Chuanbao, the investment consultant for China Merchants Securities, said that due to the severity of the epidemic and many uncertainties, this year’s two sessions may downplay the importance of economic growth data as an important policy objective while paying more attention to employment and people’s well-being.

Song Hua, vice-president of the Renmin University Business School of China, also said that the current focus is undoubted to help all kinds of SMEs to tide over the difficulties. On the one hand, a large number of SMEs are an organic part of the supply and industrial chain. On the other hand, they are the main force providing most jobs. In a certain sense, improving the survival and development ability of small and medium-sized enterprises is directly related to whether they can stabilize the basic economic situation and hold the bottom line of people’s livelihood.

Faced with urgent cash flow and pressure from work stoppage and layoffs, many SMEs have called for a broader ” cutting taxes and fees ” policy. The two sessions are likely to give priority to the protection of SMEs from the capital side. China may adopt a new policy to reduce taxes and fees, financing costs, and “subtract” housing rents.

Wang Xiaolu, deputy director of the National Economic Research Institute, called on the state to take a “three-pronged strategy” in fiscal policy, monetary and credit policies, and institutional reform.

Other economists believe that the Government should draw out the policy to encourage and improve the development of SMEs.

 

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