Ministry of Industry and Information Technology: Supporting the Development of SMEs

At the forum for responsible comrades of the Ministry of Industry and Information Technology, it was learned that in the second half of the year, the relevant national departments will work together to improve the environment for the development of small and medium-sized enterprises and help enterprises solve practical difficulties and increase efficiency. This news shows the country’s determination and confidence to support the development of SMEs.
SMEs are an important component of the national economy. Under the influence of various favorable policies of the country, China's SMEs have survived the most difficult period since the financial crisis and their business conditions have continued to improve. In the first half of the year, the added value of small and medium-sized enterprises above designated size increased by 18.7% year-on-year, which was 1.1 percentage points faster than the national average. In the first five months, the profits of small and medium-sized enterprises across the country increased by 72.2% year-on-year, and the number of employed people increased by 7%.
However, what can not be ignored is that, under the influence of the complex and ever-changing economic situation at home and abroad, various long-term accumulation of unfavorable factors are superimposed on each other, and the production and operation of SMEs have become more difficult. Since the beginning of this year, the central bank has raised the deposit reserve ratio three times in a row, and the credit increment has decreased. Some localities have reported that the financing difficulties of small enterprises have become more prominent. In addition, SMEs still suffer unfair treatment in certain industries and fields. Relevant departments should expedite the study and improvement of the credit guarantee system, and put forward specific measures to encourage private capital to enter monopolistic industries and fields, and implement relevant national policies as soon as possible.
China's SMEs are mostly labor-intensive, resource-based, and processing-traded, and their innovation capacity is not strong, their overcapacity is low, their resource utilization is low, and their production process is lagging. Problems such as energy-saving emission reduction and elimination of backward tasks are especially arduous. To enable SMEs to leave the team in the era of changing modes and restructuring, it is necessary to guide them to transition to a low-carbon, high-efficiency direction. The relevant departments of the country shall coordinate and use the special funds of the central government to support the development of small and medium-sized enterprises, support SMEs in adopting new technologies, new processes, new equipment, and new materials to carry out technological transformation, guide the development of SMEs, prevent backward production capacity transfer, and encourage Small and medium-sized innovative enterprises participate in industrialization, information integration, and strategic emerging industries.
In the first half of the year, SMEs faced various pressures such as rising prices of raw materials and fuels, rising labor costs, and increased labor disputes. Export-oriented SMEs were also suspicious of matching large orders and long-term orders. To enhance the development confidence of SMEs, it is necessary to promote the construction of socialized service systems for SMEs, improve the information service network, and develop key information services such as policy interpretation, technology promotion, talent exchange, business training, and marketing. At the same time, departments such as finance, industry and commerce, taxation, quality inspection, and environmental protection also need to simplify procedures, shorten time limits, increase efficiency, and provide convenient services for the development of small and medium-sized enterprises.

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