Arab Today, arab today small businesses to brighten chinas economic prospects
Last Updated : GMT 20:45:53
Arab Today, arab today
Arab Today, arab today

Small businesses to brighten China's economic prospects

Arab Today, arab today

Arab Today, arab today Small businesses to brighten China's economic prospects

Brighten China's economic prospects
Beijing - XINHUA

As China's economy runs out of steam, small businesses could bring back vitality to the pursuit of growth.
The People's Bank of China, the country's central bank, announced this month a 0.5 percentage point cut in the reserve requirement ratio for banks lending to small firms, desperate for capital. Companies of this type account for over 70 percent of market entities.
The cut could provide 350 billion yuan (57 billion U.S. dollars) in loanable funds and have a significant effect on the real economy if used properly, Xiang Songzuo, chief economist at the Agricultural Bank of China, estimated.
Small firms already enjoy tax breaks, reduced admin fees and relaxed market access. The effects of those policies can be seen in a software park in south China's Hainan Province, which, with local government support on finance, land and administrative approval, has attracted over 300 companies, mostly small startups. A 30 percent tax refund is available for companies paying less than 300,000 yuan in annual taxes for three years after they enter the park.
Wan Peng of Hainan Jiuchun Science and Education Media Co., speaks highly of such measures. Thanks to the aid, Wang's company has come out of the hard times, has over 100 employees at present, and is expanding into four provinces in southern China.
"Small" in Chinese busines terms means entities with total assets worth no more than 30 million yuan for industrial players and 10 million yuan for those in other sectors. The number of employees should not exceed 100 and tax due should be less than 300,000 yuan. There are around 11.7 million such firms, almost 77 percent of total companies.
If one-man operations are taken into acount, the number quintuples and the ratio tops 94 percent, according to the State Administration for Industry and Commerce.
Despite limited revenue and volatile profits, those firms contributed 60 percent of GDP and paid half of the nation's tax bill. Over 70 percent of new jobs are provided by them.
Tang Jianwei, senior analyst with the Bank of Communications, considers government support appropriate and necessary in current circumstances.
Echoing his words, Bai Jingming, vice director of the Research Institute for Fiscal Science under the Ministry of Finance, said the recent measures will help companies become more confident, create jobs and stabilize growth.
As the foundation of China's real economy, these enterprises play irreplaceable role in economic advance, technological innovation and social stability, said Miao Wei, China's Minister of Industry and Information Technology.
Small firms in China still face a bumpy ride. Financing costs and taxes can not be eliminated once and for all and labor costs keep rising.
Tang wants the central government to be more bold in cutting taxes and in financial support to truly help the small firms that have borne the brunt of the economic downturn. A bank focused on loans to small firms should be established to provide liquidity for small but important market players, he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today small businesses to brighten chinas economic prospects Arab Today, arab today small businesses to brighten chinas economic prospects

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today small businesses to brighten chinas economic prospects Arab Today, arab today small businesses to brighten chinas economic prospects

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday