Continue improving policy environment for SMEs

According to the Ministry of Industry and Information Technology, the small- and medium-sized enterprise operating index was 50.7 in October, expanding for six consecutive months.

Additionally, China Association of Small and Medium Enterprises data indicate that the SME Development Index for October stood at 89, a rise of 0.3 percentage points from that in September, marking the largest increase since March 2023. Also, another nationwide official survey revealed that companies operating at full capacity accounted for 40.2 percent of the total, an increase of 4.4 percentage points from the month before.

China has introduced a package of incremental policies to boost market demand to help the SMEs overcome their difficulties.

For instance, the MIIT has introduced a series of policies to improve SMEs' innovation capabilities, focus on their core businesses and follow a path of specialization, refinement, distinctiveness, and innovation.

At the 19th China International SMEs Fair held recently, relevant departments announced that China has cumulatively nurtured over 140,000 specialized and innovative SMEs and formed 300 characteristic industrial clusters for SMEs.

The government departments also released a special action plan for digital empowerment of SMEs from 2025 to 2027 at the event. The action plan is aimed at establishing a well-matched supply and demand ecosystem for SME digital transformation, pushing the digital transformation of SMEs toward a broader scope, higher level and better quality and efficiency.

While promoting their development quality, it is also necessary to continuously improve the business environment for SMEs. For example, due to fiscal pressures in some regions, businesses have reported issues such as arbitrary charges, fines, and levies. Therefore, it is essential to continue advancing market governance and create a better business environment for enterprises.

21ST CENTURY BUSINESS HERALD