China announces more measures to shore up small firms

An export-oriented factory in east China's Jiangsu Province, March 13, 2022.

The Chinese government announced new measures on Thursday to help small and medium-sized enterprises (SMEs) and self-employed individuals navigate hardships.

While chairing a State Council executive meeting, Premier Li Keqiang also specified steps to stabilize foreign trade amid efforts to smoothen industrial and supply chains.

Premier Li spoke of the importance of SMEs as the foundation for stabilizing the economy and the main driver of employment. He urged the speedy implementation of existing policies and measures, such as tax rebates, fee reductions, postponement of social security premium payments, logistics guarantees, and promotion of enterprises' resumption of work and production.

The meeting said China will increase policy support, especially financial support to SMEs. It will guide large state-owned banks in actively distributing 1.6 trillion yuan ($240 billion) in inclusive loans for small and micro companies this year.

In order to help foreign trade enterprises cope with challenges, the meeting placed emphasis on securing orders and stabilizing the import and export of key and labor-intensive industries.