China shores up support for MSEs and self-employed

Premier Li Keqiang pledged to extend more support to micro and small enterprises (MSEs) and the self-employed on six fronts.
By: | May 31, 2021

MSEs and self-employed individuals are still facing difficulties in their production and operation, and as such, stronger and targeted support is very much called for, he said. 

Inclusive finance for MSEs and the self-employed will be enhanced, including encouraging financial institutions to expand credit loans, first-time loans, medium- and long-term loans and loan renewals without principal repayment, and to promote the pay-as-you-go lending model. 

Measures to keep prices and supply of raw materials stable will be implemented, including setting up platforms to match supply with demand across industrial supply chains in key sectors. 

Sub-national governments will be supported in providing MSEs and self-employed individuals with job retention subsidies. 

Internet platforms will be encouraged to lower excessive charges and commissions, as well as the ratio of commissions and promotion fees for new businesses. 

Discriminatory policies and regulations that hinder market entities’ participation in economic activities will be overhauled and repealed to strengthen impartial oversight. Also, there will be stronger regulations to counter monopoly and unfair competition. 

READ: Private-sector average wages in China rose 5.3% in 2020

Lastly, efforts will be made toward covering self-employed individuals and informal-sector workers with social-insurance schemes to meet basic needs. Also, household registration restrictions will be lifted to allow workers to enroll in these schemes where they work. 

As at the end of April, China has over 44 million MSEs and more than 95 million self-employed individuals, according to XinhuaNet.