Li says timely help for services sector crucial

The government must provide timely help to market entities in the services sector, which plays a vital role in boosting employment but has been hit hard by the COVID-19 pandemic, Premier Li Keqiang said on Friday.

He made the remark during a news conference after the fifth session of the 13th National People's Congress concluded in Beijing.

"Many firms in these industries are micro, small and medium-sized enterprises that are already quite weak financially, and there are a host of difficulties making things more difficult for these market entities," he said.

The 100 million self-employed households are supporting some 300 million jobs, Li said, adding "we must provide timely help to all these market entities because they play a very important leveraging role. Timely help is critical just as it will be too late to water a plant if the root is dried out and rotten."

The premier said for these industries in special difficulty, the government has worked out over 40 supportive measures, and the tax refund alone for catering, tourism, passenger transport and cultural sector will amount to 180 billion yuan ($28.5 billion).

In addition to fiscal support, the government encourages banks to provide loan extension for promising businesses, he said.

Currently, consumer demand, especially consumption in brick-and-mortar shops, is indeed quite subdued.

"Business closure is something no one wants to see, and actually can affect our daily life. Our policy support for these industries in special difficulty is not just about providing these industries with timely help. It will also help bring greater warmth to our people's life and add greater vibrancy to China's economy," he added.