BEIJING, March 1 (Xinhua) -- The Chinese authorities, both centrally and at a provincial level, have frequently rolled out a series of favorable policies in the past two months of 2019 to support development of the private enterprises, according to the Xinhua-run Economic Information Daily on Friday.
For example, the National Development and Reform Commission (NDRC), China's top economic planner, the Ministry of Finance (MOF), the China Banking and Insurance Regulatory Commission (CBIRC), etc., have released policies aiming at removing industry access restrictions, solving financing problems, reducing cost burdens, and optimizing the business environment, for the private enterprises.
Experts said that since the beginning of the year, the policies of supporting the private enterprises have been unprecedentedly diverse and intensive. These policy measures can be described as "all-round". Compared with the previous, these policies in the year pay more attention to resolving specific problems in a targeted manner.
In early 2019, the State Council, China's cabinet, unveiled larger scale tax cuts and tax exemptions for the micro and small enterprises (MSEs). Through raising the value-added tax (VAT) threshold for small-scale taxpayers, and relaxing the standards of small-scale and low-profit enterprises, it is estimated to reduce annual burden of the MSEs by about 200 billion yuan.
In addition, the Ministry of Science and Technology (MOST) also encourages the private enterprises to participate in major national science and technology tasks.
In terms of financing, the People's Bank of China (PBOC), China's central bank, added special indicators to assess the domestic state-owned banks' performance in supporting the private enterprises, and also rolled out the bond-financing support tools for the private enterprises.
CBIRC also released 23 measures from eight aspects to assist private enterprises in financial services, and establish a long-term mechanism of the bank loans to them.
At the same time, the local authorities also intensively deployed policies to support the private enterprises.
For example, northeast China's Liaoning province proposed 16 measures to further stimulate the effective investment of the private sector and promote sustained and healthy economic development. It supports the investors in which the private capital equity takes a lion's share to participate in the public-private partnership (PPP) projects.
Northwest China's Gansu province issued about 58 measures in eight aspects to optimize the business environment, increase fiscal and tax support, and strengthen financing services for the private enterprises.
The key point for the private enterprises this year is to stabilize their expectations and ensure their stable operations. In addition, solving their financing problem cannot be ignored. The Private entrepreneurs often want financial institutions to develop differentiated and more targeted credit policies. Financial institutions should also allocate credit resources to the most effective enterprises and truly support the sustainable development of dynamic and promising enterprises, said Liu Xingguo, a researcher at the Research Department of China Enterprise Confederation (CEC). (Edited by Hu Pingchao, hupingchao@xinhua.org)
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