Six measures of the State Council to help SMEs

Overcoming difficulties, Premier Wen Jiabao presided over the State Council executive meeting yesterday to study and implement policies to promote the development of small and medium-sized enterprises, and further adopt new support measures, including improving the policy and legal system to create an open and fair competition environment for small and medium-sized enterprises; Corporate financing difficulties. At the same time, it will also increase financial and tax support for qualified SMEs to participate in home appliances, agricultural machinery, automobile and motorcycle going to the countryside, and implement export tax rebates.
The meeting on improving the legal financial tax pointed out that due to the impact of the international financial crisis, the production and operation of small and medium-sized enterprises has been difficult since the second half of last year. After the introduction of relevant policies and measures by the central government, the production and operation of SMEs have undergone positive changes, but the development situation is still grim. More positive and effective measures must be taken to help SMEs overcome difficulties, change their development methods, and achieve sound and rapid development.
The six major support measures include improving the policy and legal system, expanding the scope of market access, and reducing barriers to entry. The phased suspension of social insurance premiums for difficult SMEs or the implementation of the reduced rate policy will be extended to the end of 2010. In addition, it has effectively assisted SMEs in solving financing difficulties and provided appropriate subsidies to small enterprises in financial institutions in increments.
The measures will also implement differentiated regulatory policies for commercial banks on SME credit business; they will also accelerate the construction of the GEM market and increase the direct financing scale of SMEs. Establish multi-level SME loan guarantee funds and guarantee institutions including central and local financial contributions and joint ventures.
Speeding up export tax rebates In addition, the central government will increase financial and tax support for small and medium-sized enterprises, and focus on supporting technological innovation, structural adjustment, and employment expansion for small and medium-sized enterprises. It will also speed up the establishment of the National SME Development Fund. The central government will also resolutely clean up and ban unreasonable charges, as well as speed up technological progress and structural adjustment of small and medium-sized enterprises.
At the same time, we must speed up the implementation of export tax rebates and other policies to support SMEs to explore the international market. And comprehensively clean up and further reduce and merge administrative examination and approval matters to provide convenient services for SMEs.

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