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Micro, small firms' growth stressed

By WANG KEJU | China Daily | Updated: 2021-05-27 07:21
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Technicians work at a small company that makes teaching equipment in Cangzhou, Hebei province. [Photo by Fu Xinchun/For China Daily]

Premier says economy going in positive direction, but uncertainties on the rise

China will extend more support to micro and small enterprises and self-employed individuals to help them overcome difficulties and grow their business, the State Council's executive meeting chaired by Premier Li Keqiang decided on Wednesday.

By the end of April, the country had over 44 million MSEs and more than 95 million self-employed individuals, and they have become the country's primary source of employment.

"Overall, the economy is going in a positive direction this year, yet uncertainties are on the rise. … Support should be kept up as needed," Li said.

Inclusive finance in support of MSEs and self-employed individuals will be enhanced. Financial institutions will be encouraged to expand credit loans, first-time loans, medium- and long-term loans and loan renewals without principal repayment, and to promote the pay-as-you-go lending model.

A number of measures will be taken to help MSEs and self-employed individuals cope with the price rally of raw materials in upstream industries. Market-oriented approaches will be applied to guide upstream and downstream links of supply chains to maintain the stability of raw material supplies and coordinate production and sales, thus ensuring supply and price stability. Action will be taken against irregularities such as hoarding and price gouging.

"Recent years have seen the unprecedented expansion of MSEs and self-employment," Li said.

He added that policy measures aiming to provide protection need to be further implemented for these market players.

"As many people, including college graduates, change their mindset and choose flexible employment nowadays, the government needs to set up platforms and provide them with support," Li said.

Backstop measures will be taken to meet basic living needs. Efforts will be made toward covering self-employed individuals and flexibly employed people with social insurance programs, and household registration restrictions will be lifted to allow workers to enroll in programs where they work. Trials will be made to include flexibly employed people in workplace safety insurance.

"We must recognize that most MSEs and self-employed individuals are still at a disadvantage in market competition. Hence, the policy support must not stop, but should be kept up as needed. Policies for tax and fee cuts will be earnestly implemented," Li said.

"We need to promote fair competition through impartial regulation. Unfair competition, once spotted, must be resolutely dealt with. This is to foster a more enabling environment for market entities to grow. Meanwhile, the government should also provide protection that helps to meet their essential needs."

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