SOEs to extend helping hands to SMEs

The service sector is an important part of the national economy, and small and micro-sized enterprises and individual businesses play an important role in the service sector.

But due to the impact of the epidemic and other adverse factors, many SMEs and individual businesses in the service industry are facing a survival crisis.

That is why the State-owned Assets Supervision and Administration Commission of the State Council has called on all State-owned enterprises leasing premises to SMEs or individual businesses in the service sector to exempt them from paying rent; for up to six months in high-risk areas and three elsewhere.

The rent exemption is a timely move to ease the financial burden on these enterprises by cushioning them against the impacts of the epidemic.

The central authorities carried out a similar action in 2020 following the outbreak of the epidemic, and this year's action represents an extension of that policy, sending a positive signal that the SOEs will try their best to minimize the epidemic's influence on socioeconomic development and that they are willing to share the burden of smaller enterprises to help them overcome the temporary difficulties.

It is good to see the implementation of the policy has a deadline ranging from two months to half a year depending on the different conditions of the targets. That means it is not a flexible choice but a must-do task, which also accords with the acute needs of small enterprises and individual businesses.

Doing the utmost to help SMEs and individual businesses tide over the difficulties is a necessary measure to stabilize China's economic fundamentals, as it is an essential requirement for ensuring stable employment and expectations.

Local governments should follow suit by rolling out similar policies to help bail out the hard-hit small businesses from their difficulties and consolidate their confidence that they have the full support of the country in these difficult times.