Sur­vey cap­tures small and medium-sized com­pa­nies’ con­cerns

China Daily (Canada) - - BUSINESS - By HUANG YING huangy­ing@chi­nadaily.com.cn

Ris­ing la­bor costs, fi­nanc­ing dif­fi­cul­ties and tax is­sues con­tinue to be the key con­cerns of en­ter­prises, ac­cord­ing to a sur­vey re­leased on Tues­day.

The China Cen­ter for Pro­mo­tion of SME De­vel­op­ment sur­veyed more than 4,000 en­ter­pris­ers across 31 prov­inces.

Rapidly ris­ing la­bor cost re­mains top of the ma­jor con­cerns among en­ter­prises, and 79 per­cent of them have re­flected this is­sue, 10 per­cent­age points higher than the pre­vi­ous year. Mean­while, 66 per­cent of re­spon­dents have com­plained about the high cost of fi­nanc­ing, 6 per­cent­age points up com­pared with last year, said Qin Zhi­hui, di­rec­tor of the cen­ter.

The list sys­tem for en­ter­prise-re­lated charges has helped re­duce the bur­dens of en­ter­prises na­tion­wide over the past year.

“More than 95 per­cent of the re­spon­dents said that the en­ter­prisear­bi­trary charges and un­jus­ti­fied financial levies have been ef­fec­tively con­tained, and 80 per­cent of the en­ter­prises think the list sys­tem has served very well as a re­as­sur­ing force for them,” said Xin Guobin, vice-min­is­ter of industry and in­for­ma­tion tech­nol­ogy.

Ex­ces­sive fees for ver­i­fi­ca­tion and ap­provals in cer­tain re­gions and in­dus­tries like en­ergy and fi­nance are a worry, said Xin.

The gov­ern­ment has been lay­ing stress on re­duc­ing bot­tle­necks for en­ter­prises and en­hanc­ing aware­ness of reg­u­la­tions among com­pa­nies.

“This is of great sig­nif­i­cance un­der cur­rent eco­nomic cir­cum­stances as it could help strengthen en­ter­prises’ con­fi­dence as well as con­trib­ute to sta­bi­liz­ing eco­nomic growth,” said Xin.

Com­pa­nies have been urg­ing new gov­ern­ment poli­cies to cut cor­po­rate tax and of­fer ex­emp­tions. Some 80 per­cent of the re­spon­dents re­in­forced their ap­peal through the sur­vey.

Sim­i­larly, 68

per­cent

of

re­spon­dents hoped the un­nec­es­sary ver­i­fi­ca­tion and ap­proval process will be can­celed. And 63 per­cent of the re­spon­dents­de­mand­ed­fur­ther low­er­ing the cost of fi­nanc­ing.

“It will be a long-term bat­tle to ease the bur­dens on en­ter­prises,” said Xin.

About 90 per­cent of the re­spon­dents in the sur­vey were small and medium-sized en­ter­prises. The pri­vate sec­tor took a dom­i­nant share of 56 per­cent while their State-owned coun­ter­parts ac­counted for 12 per­cent of all the re­spon­dents.

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