Time to help small and micro businesses to vitalize market

China has made steady economic recovery over the past two months thanks to rapidly growing exports, increasing investment and consumption, and stable employment and prices.

China was the first country to effectively contain the novel coronavirus epidemic and the only major economy to achieve positive growth last year. Over the past two months, China has sustained the momentum of economic recovery which started during the second quarter of 2020, laying a solid foundation for the overall economic recovery.

Statistics show that China’s industrial production grew faster in the two months and added value of industries above designated size increased by 35.1 percent year-onyear.

But given that the international situation is uncertain, the pandemic is yet to be contained worldwide, and prevention and control measures are still in force in China, the country’s economic recovery is not solid enough.

That explains why Premier Li Keqiang stressed in the Government Work Report delivered to the National People’s Congress, the country’s top legislature, that the country will continue the macro policies to promote economic growth, adjusting them only if necessary.

Economic data show that China’s small and micro enterprises continued to face production and operation difficulties over the past two months. The year-on-year growth rate of the enterprises’ main indicators looks good, but that’s because of the low base during the corresponding period last year.

Small, micro and individual businesses were the first to suffer the impact of the outbreak because of their weak ability to withstand risks. The supporting financing and tax policies adopted by the authorities have not helped them overcome all their difficulties.

Small and micro enterprises provide 80 percent of urban employment and contribute more than 50 percent in tax revenues. Therefore, increasing support for them is key to stimulating market vitality. The country must take more effective measures to solve their financing difficulties.

It can stimulate endogenous driving forces of market players through reform and innovation, continue to improve the business environment, especially for small and micro enterprises, and promote their digital transformation.