China’s key SMEs urged to report improper fines, fees as Beijing seeks to ease hardships

China’s industry ministry will seek to hunt out inappropriate fines and biased administrative fees to reduce the burden on companies and promote the development of small and medium-sized enterprises (SMEs) as Beijing seeks to offer more support to the key sector.

The Ministry of Industry and Information Technology would gather public information from Thursday to July 26 on problems faced by businesses, such as arbitrary fees, fines and government-mandated service provision by businesses, it said on Thursday.

The ministry is also soliciting public complaints about local governments defaulting on corporate debts and irregularities in the enforcement and inspection of businesses.

The investigation, which is dedicated to promoting new industrialisation, reducing burdens on enterprises and supporting the development of SMEs, offers a complaints platform and encourages business owners owed money by authorities, institutions and large enterprises to lodge complaints.

With the property downturn having reduced the incomes of local governments having relied heavily on land revenues, some have sought to increase their declining revenues by illegally fining private companies.