By Zheng Caixiong (China Daily)
Updated: 2007-09-15 13:58

Preferential policies

To further spur the development of SMEs, a series of preferential policies are being drafted, according to Wang.

These policies involve taxation, land use rights, loans, financing, employment, foreign trade and the expansion of international cooperation.

"That means SMEs on the Chinese mainland will be able to enjoy many more preferential policies for development in the near future," Wang said.

SMEs from Hong Kong and Macao will enjoy the same policies as their mainland counterparts, he added.

The vice director also urged SMEs to expand investments in technical innovation to improve the quality of their products, build their own brand names and further raise their competitive capacity.

He urged provinces, municipalities and regions across the country to further improve the business environment for SMEs. He hopes Chinese SMEs will be able to compete with State-owned enterprises, foreign-funded companies and joint ventures to assume a leading role in the country's economic development.

"China's SMEs can become even bigger and stronger through mergers, acquisitions and purchase of stocks," said Wang.

Meanwhile, he encouraged the enterprises to further expand cooperation with their foreign counterparts as well as their investments abroad, actively participate in international competitions and try to increase their presence in the world market.

Wang also urged government departments at all levels to do their best to help SMEs overcome their difficulties in financing and development.

Last year, the China Banking Regulatory Commission issued a notice urging banks and other financial organizations to revamp their policies about granting loans to SMEs, Wang pointed out.

By the end of June, governments at various levels in the nation had successfully helped 778,641 SMEs apply for bank loans.

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