Small in Size, Big in Standing

China’s economy maintained stable growth in 2021, with small and medium-sized enterprises (SMEs) playing a major part.

The COVID-19 pandemic has presented SMEs with many obstacles. During this difficult time, the Chinese Government has taken various marketbased measures—such as optimizing the business environment, reducing taxes and fees and providing inclusive financial support—to help SMEs resume growth. Figures show that in 2021, sales revenue and total profits of the nation’s leading SMEs grew by 20.7 percent and 28.2 percent, respectively. Maintaining sound growth against the pandemic backdrop, these businesses have become a big force promoting China’s economic growth, stimulating innovation and ensuring employment.

In 2022, as the coronavirus continues its global spread, the Chinese economy still faces complicated internal and external settings rife with uncertainties. Industrial development faces the triple pressures of demand contraction, supply shocks and weakening expectations, making it hard to sustain steady economic growth. The policy of encouraging SME growth must continue to ensure stable progress and employment.

China will ensure constancy and lift the healthy expansion of SMEs, with established policies and measures to be further executed to help them weather the storm.

The country will promote highquality progress, particularly for those specialized and innovative SMEs. Their groundbreaking capacity and ability to address complications will get a leg up.

The government’s capability to serve SMEs, too, will be intensified. Continued efforts should address issues regarding the offering of rewards or subsidies to qualified financing agencies, promoting the targeted docking of enterprises and financial institutions, expanding financing channels as well as mitigating challenges that SMEs are facing in accessing affordable financing.

On a final note of improvement, the SME operating environment will be further enhanced. New policies will assess and supervise the business environment to protect the lawful rights and interests of all SMEs.