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China rolls out policy to promote development for SMEs

China's State Council, the Cabinet, issued Tuesday a document to strengthen support for the development of the country's small-and medium-sized enterprises (SMEs).

The government will deepen reforms in the country's monopoly industries, lowering the market access threshold for the SMEs and creating a more open and fair competition environment for SMEs, said the document.

According to the document, the government will optimize its procurement mechanism, raising the purchase proportion of commodities, engineering and services from the SMEs.

The government will grant a one-year reprieve on social security fund to the SMEs in operational difficulty amid the global financial crisis, in a bid to reduce financial burdens and protect the interests of the SMEs.

It will expand channels for the SMEs to raise capital through encouraging banks to lend more to the SMEs, stepping up making policies to guide private capital to tap into the country's financial system.

The government will increase tax breaks to the small firms with an annual taxable income below 30,000 yuan (4392.4 US dollars) from Jan. 1 to Dec. 31 of 2010.

According to the document, the government will also encourage the SMEs to improve their technological innovation capacities, enhance the product quality, and promote development in energy conservation and clean production.

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 Source : Xinhua  Editor: Ivy
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