Chinese economy: China provides financial assistance to SMEs

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Chinese authorities say they are providing support to small and medium-sized businesses affected by the pandemic. Millions of businesses across the country have been forced to close or limit their activity to help contain the spread. Our reporter You Yang has more details.

The measures include tax cuts, rent reductions and financial aid.

XU XIAOLAN Vice Minister, Ministry of Industry and Information Technology “We will try to ensure that the policies are implemented in time. We will create a special fund for small, medium and micro-enterprises. We will reduce their rents, water and electricity charges, and subsidize the social security of their staff. We will also help SMEs solve their difficulties in obtaining loans from banks.

China’s top banking and insurance regulator said major state-owned banks could also provide financial support in the form of loans or loan restructuring to facilitate repayments.

MAO HONGJUN Head of Inclusive Finance Department, China Banking and Insurance Regulatory Commission “We also request banks to renew loans, extend and adjust repayment terms and waive default interest for micro, small and medium-sized enterprises and self-employed households, where applicable. Going forward, China will step up macroeconomic policy adjustment and ease the impact of the pandemic to ensure the economy grows at a healthy pace.

Authorities say they will also use public service platforms for small and medium enterprises and provide legal advice for their arrears issues.

YOU YANG Beijing “The Chinese authorities say they believe that small and medium-sized enterprises play an important role in the country’s economy and that their recovery will contribute to economic recovery throughout the country. You Yang, CGTN, Beijing.
Source: CGTN

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