China will take a multi-pronged and targeted approach to step up relief for micro, small, and medium-sized enterprises (MSMEs), the State Council’s executive meeting chaired by Premier Li Keqiang decided on Oct 20.

“The confidence and market expectations of MSMEs are falling. In this context, we need to further bolster relief policy support for MSMEs and help them grow more competitive. The relief policies must be inclusive and targeted,” Premier Li said.

Efforts will be made to prevent cost-induced pressure transmitted from commodity price hikes on downstream industries. Inclusive benefit policies, including time-limited tax and fee cuts, will be studied as quickly as possible, and localities will be encouraged to provide support to MSMEs, such as reduction or exemption of rents and utility bills, to lighten their burden and help them tide over the difficulties.

MSMEs will be supported in developing themselves into ones with specialized, sophisticated techniques and unique, novel products, to enhance their competitiveness.

“We need to respond proactively to the acute difficulties facing MSMEs and help ease their cost-induced pressure. The central government will roll out temporary support policies to shore up their confidence,” Premier Li said. “Supporting MSMEs and other market entities will ensure stability in employment, and is also conducive to increasing supply and stabilizing prices.”