The Chinese central government has just issued a new directive to support the development of private enterprises in China and help them overcome the impacts of the COVID-19 pandemic.
Six central government departments including the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) jointly issued the “Implementation Opinions Concerning Support for the Acceleration of the Reform and Development and Upgrade of Privately Operated Enterprises” (关于支持民营企业加快改革发展与转型升级的实施意见) on 23 October.
The goal of the Opinions is to “effectively deal with the impacts of the novel coronavirus pandemic, stimulate the vitality and creative capability of privately operated businesses, further create a fair competition environment for the development of privately operated businesses, and drive expansions in employment.”
The Opinions outline a total of 38 specific measures to support private enterprise growth, including efforts to reduce operating costs, strengthening of support for tech innovation, improving resource access for businesses and the resolution of financing difficulties.
Specific measures include a complete refund of union fees to micro and small-enterprises during the period from 1 January 2020 to 31 December 2021; reducing the full year power expenses of heavy industry and standard industrial by 5% with the exception of energy intensive sectors, and standardising service fees for ports, airports and rail.