China to create business environment that supports growth of SMEs

China has reaffirmed its support for SMEs, promising to create a business environment that nurtures growth among smaller firms, Chinese Vice-Premier Liu He told an SME forum in Changsha on Tuesday. 

“I hope that the majority of entrepreneurs will grasp the objective trends of China’s economic and social development, calmly analyse the situation, assume due social responsibilities from the perspective of the country’s overall interests, deepen their professionalism, strive to innovate, and truly achieve high-quality development,” Liu said, according to South China Morning Post. 

He added that supporting SMEs was key to China’s growth, and urged business owners to be active in the nation’s economic development, noting that China’s capital market will provide support to the sector to innovate and expand. 

“SMEs are the mainstay of the market and the main source of jobs … therefore, we must firmly support the development of SMEs,” he said, adding that “entrepreneurship is like a fish. If the water temperature is right, the fish will come.”

However, Beijing’s recent crackdown in the tech, education and medical industries has caused some worry among entrepreneurs, reports the publication. 

READ: China’s gig economy works encouraged to form unions

In July, the government announced a ban on holiday and weekend tutoring, and will no longer approve the establishment of new tuition centres. Firms that run edtech platforms or provide online education will also no longer be allowed to raise capital through initial public offerings (IPOs).