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Much needed relief for small and micro firms

By MA LIANG | China Daily | Updated: 2021-03-09 07:26
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Employees put finishing touches on electronic parts at an industrial park for small and medium-sized enterprises in Qira county, the Xinjiang Uygur autonomous region, in November. DING LEI/XINHUA

Premier Li Keqiang delivered the Government Work Report at the annual session of the National People's Congress on Friday.

The report listed measures such as fees and tax cuts, financial subsidies and lower interest rates to help small and micro enterprises. It also stressed that there is a need to take more measures to help market players recover from the impact of the pandemic.

Small and micro enterprises are like the capillary vessels of China's economy because they provide the majority of jobs and sustain the main economic activities. However, being small in size, they are especially vulnerable to risks, as was seen during the novel coronavirus outbreak last year.

Although China is the only major economy to achieve positive GDP growth last year, the small and micro enterprises have struggled to recover from the pandemic's impact. To ease their burden, the Government Work Report has introduced some specific measures.

The tax and fee cuts will help reduce the small and micro enterprises' operational costs. And the simplified procedures will help them save precious time, which is akin to reducing costs.

More importantly, the construction of industrial internet and R&D platforms will lower the threshold of R&D and innovation, thus encouraging the small and micro enterprises to promote innovation.

In the past, many small and micro enterprises have complained about difficulties in getting funds. The favorable policies on loans, financial guarantee and credit-sharing in the Government Work Report should therefore come as a boon to the small and micro enterprises.

Premier Li also said the financing cost of small and micro enterprises should be further lowered in 2021. The Government Work Report offers some much-needed relief to the small and micro enterprises. Its implementation will help restore their confidence and boost their development.

-MA LIANG, A PROFESSOR OF PUBLIC MANAGEMENT AT RENMIN UNIVERSITY OF CHINA

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