SMEs may get effective help
By Wang Yanlin |
October 27, 2011, Thursday
|
Print Edition
Print Edition
CHINA will consider "stimulative policies" for smaller companies as some of them are still struggling to survive amid a global economic slowdown.
"Small- and medium-sized enterprises, especially those with fewer than 20 employees, encounter many operational and financial difficulties under the current circumstances," Zheng Xin, deputy director general of the SME Department of the Ministry of Industry and Information Technology, said yesterday at a press conference. "We should attach high importance to the difficulties SMEs face and take effective measures to help them overcome the difficulties."
The Ministry of Finance said in a statement on Tuesday that China will extend tax reduction to financial institutions for bad loan provisions on loans to agriculture companies and SMEs. The cut will continue until December 31, 2013.
The State Council, or China's Cabinet, unveiled several supportive policies for SMEs last month, including cutting taxes and ordering state-owned banks to offer easier access to credit for them.
In the first eight months, industrial production of SMEs grew 16.7 percent from a year earlier, faster than the average industrial output growth of 14.2 percent in the first three quarters.
The problems faced by SMEs came into the spotlight in Wenzhou, China's cradle of SMEs, when more than 90 bosses of private companies disappeared, committed suicide or declared bankruptcy since April. They owed debts of about 10 billion yuan (US$1.57 billion) to banks and individual creditors in the informal lending market.
During a visit to Wenzhou in Zhejiang Province earlier this month Premier Wen Jiabao said SMEs faced difficulties on several fronts, including obtaining credit, paying taxes and dealing with inflation.
"Small- and medium-sized enterprises, especially those with fewer than 20 employees, encounter many operational and financial difficulties under the current circumstances," Zheng Xin, deputy director general of the SME Department of the Ministry of Industry and Information Technology, said yesterday at a press conference. "We should attach high importance to the difficulties SMEs face and take effective measures to help them overcome the difficulties."
The Ministry of Finance said in a statement on Tuesday that China will extend tax reduction to financial institutions for bad loan provisions on loans to agriculture companies and SMEs. The cut will continue until December 31, 2013.
The State Council, or China's Cabinet, unveiled several supportive policies for SMEs last month, including cutting taxes and ordering state-owned banks to offer easier access to credit for them.
In the first eight months, industrial production of SMEs grew 16.7 percent from a year earlier, faster than the average industrial output growth of 14.2 percent in the first three quarters.
The problems faced by SMEs came into the spotlight in Wenzhou, China's cradle of SMEs, when more than 90 bosses of private companies disappeared, committed suicide or declared bankruptcy since April. They owed debts of about 10 billion yuan (US$1.57 billion) to banks and individual creditors in the informal lending market.
During a visit to Wenzhou in Zhejiang Province earlier this month Premier Wen Jiabao said SMEs faced difficulties on several fronts, including obtaining credit, paying taxes and dealing with inflation.
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