China has implemented multiple measures to help the country's numerous small firms survive economic hardship and has seen positive results, a senior Chinese official has said.
Chinese small and medium-sized enterprises are "facing major challenges, including rising cost, tightened capital flow and other burdens," Miao Wei, minister of the Ministry of Industry and Information Technology, said Friday during the 21st APEC Small and Medium Enterprise (SME) Ministerial Meeting in east China's Nanjing city.
The Chinese government has attached great significance to the problem and managed to create a sound environment for the SMEs, allowing the market to play the main role and simplifying administrative procedures, he said.
China cut income taxes and business taxes for small firms in the first half of this year, along with facilitating fund raising and providing professional services, he said.
Small businesses in China contributed around 60 percent of GDP and paid half of the nation's tax bill but suffered the most from the economic slowdown. The revival of these firms will inject vitality into China economy.
Miao believed the favorable policies will ensure small firms can turn the corner, as encouraging signs have already emerged.
Combined revenues from main business and profits of SMEs increased 11.7 percent and 14.3 percent year on year respectively in the first half, with the number of registered firms jumping by 70 percent.
There are around 11.7 million small firms in China, almost 77 percent of total companies.