In the News: State Enterprises to Support SMEs; Promotion of Foreign Trade; and Revitalization of Infrastructure Projects

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SOEs to Provide Support for SMEs

Recently, China's State Council released a Circular on Matters Relating to State-owned Enterprises Helping Small and Medium-sized Enterprises to Relieve Difficulties and Promote Coordinated Development (关于中央企业助力中小企业纾困解难促进协同发展有关事项的通知).

This plan aims to ease pressures faced by smaller companies, including untimely payments, rising costs, and lack of capital liquidity. First, the State-owned Assets Supervision and Administration Commission (SASAC), in assessing state-owned enterprises' (SOEs) business performance, will take into account whether they took action to help ease the burdens of associated small and medium-sized enterprises (SMEs) such as in reducing rent. Second, SASAC will investigate and hold SOEs accountable for any failure to make timely payments to SMEs and implement appropriate measures to reduce or waive rent payable by small and micro-sized enterprises.