Good news for chinese small and micro-sized businesses

On August 2, China’s State Council released the “Scheme on Division of Work for Key Authorities to Further Support the Healthy Development of Micro and Small-Sized Enterprises (MSEs), containing 75 working items and involving more than 10 governmental authorities. Overall can be said that there are good news for Chinese Micro and Small-Sized entrepreneurs, since the Government is taking clear steps to support them. The key information of the Scheme can be summarized as follows:

Further strengthening financial and tax support to MSEs

• The total scale of special funds for MSEs has been expanded from RMB12.87 billion to RMB14.17 billion in 2012, and will be increased annually.
• A central finance committee will allocate RMB15 billion to the Development Fund of MSEs on a five-year basis, and RMB3 billion will be contributed to the fund in 2012.
• Implements various financial policies to support the development of MSEs.

Making efforts to relieve MSEs from difficulties in financing

• Expanding financing channels.
• Expediting the development of small financial institutions.
• Strengthening the credit guarantee service for MSEs.
• Regulating the financing services provided to MSEs.

Promoting the innovation development and structure adjustment of MSEs

• Supporting the technical transformation of MSEs.
• Improving the innovation capacity of MSEs.
• Improving the capacity of inventing, utilizing, protecting and managing the intellectual property of MSEs.
• Supporting the development of innovation-oriented, entrepreneurial and labor-intensive MSEs.
• Expanding the scope for private investment.
• Accelerating the elimination of backward capacity.

Intensifying support to the market exploration of MSEs

• Innovating the marketing and business mode.
• Improving custom clearance services.
• Simplifying the formalities for domestic sales of processing trade.
• Implementing the pilot mode of bonded regulatory control on integrated circuit industry chains.

Assisting MSEs to improve their operation and management levels

• Supporting management innovation.
• Improving quality management levels.
• Strengthening human resource development.
• Formulating and improving polices to encourage college graduates to find employment in MSEs.

Facilitating the cluster development of MSEs

• Arranging the land for industrial cluster development.
• Improving the environment for the cluster development of MSEs.

Intensifying public service provided to MSEs

• By 2015, 4,000 public service platforms will be established and improved to serve MSEs and priority will be given to cultivate and select 500 demonstration platforms of public service.