China offers support to enterprises and self-employed businesses

Chinese ministries have rolled out a raft of support policies that focus on cutting fees and taxes, as well as provide employment skills training.
By: | July 7, 2022

The number of market entities registered in China stood at 159 million by the end of May, up 3.6% from the end-2021 figure. Of these, 50.12 million are enterprises and 107 million are self-employed businesses.   

These entities play a key role in keeping the world’s second-largest economy stable, said Yu Jun, spokesman of the State Administration for Market Regulation. 

China’s top market regulator not only extends support to these entities by introducing measures such as rent reduction and employment skills training but also works to assist those affected by the pandemic in other ways.

Its branch in southern China’s Guangdong province has released to micro, small and medium enterprises (MSMEs) free product quality testing coupons worth 20 million yuan (US$2.98 million), which reduced their corporate costs. 

Another agency, the State Taxation Administration, has unveiled supportive policies to ease enterprises’ burden, including tax refunds, tax and fee cuts, and deferrals. 

The combination of tax and fee cuts is estimated to relieve enterprises of 2.86 trillion yuan (US$426 million) in expenses in the first half of 2022.  MSMEs are clearly being prioritised, as about 70% of the tax and fee support went to them.

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To facilitate financing for private enterprises from the bond market, China’s top securities regulator decided recently to waive transaction fees for private firms’ bond financing whenever possible. This move is expected to reduce fees worth about 160 million yuan (US$23.84 million) each year, according to The Manila Times.