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Coronavirus: China’s pandemic lifeline for small firms draws lukewarm response from business owners
- At the National People’s Congress in Beijing, Premier Li Keqiang announced support for SMEs, including delayed loan repayments and more bank loans
- Policies drew mixed responses from small business owners, some of whom are sceptical about whether they will work in practice
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The Chinese government will offer more financial assistance to small and medium-sized businesses to help ease the economic shock of the coronavirus pandemic, according to its main policy-setting document, released on Friday.
Premier Li Keqiang’s 2020 government work report, unveiled at the National People’s Congress in Beijing, included plans to delay loan repayments and interest payments, as well as increasing bank loans.
Small and medium-sized enterprises (SMEs) will be entitled to delay loan and interest payments by a further nine months, and big commercial banks will be obliged to increase lending to SMEs by more than 40 per cent, Li said.
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The Chinese government also aims to reduce the country’s corporate tax and fee burden by more than 2.5 trillion yuan (US$350.5 billion) for all businesses over the course of they year, Li said.
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Coronavirus backlash further fraying China’s ties to global economy
Coronavirus backlash further fraying China’s ties to global economy
“Domestically, consumption, investment, and exports have declined. Pressure on employment has risen significantly. Enterprises, especially micro, small, and medium businesses, face growing difficulties,” he added.
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“We must do our utmost to help enterprises, particularly micro, small, and medium businesses, and self-employed individuals get through this challenging time,” he told 2,879 lawmakers gathered in Beijing.
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