China will strengthen a variety of supportive policies, including cost-cutting and increased financing, to help small and medium-sized enterprises (SMEs) overcome their difficulties, a press conference said on Wednesday, May 18.

Xu Xiaolan, vice minister of industry and information technology, said China's SMEs recorded steady growth in the first quarter of 2022, with the combined revenue and profit of major industrial enterprises increasing by 14.1 percent and 6.5 percent year-on-year, respectively.

To solve the difficulties faced by small businesses in terms of costs, financing and logistics, local governments have introduced policies to provide subsidies for rent, utilities, loan repayments and social security fees, Xu said.

The state has also taken various measures to increase inclusive loans and clear arrears for small businesses, while promoting the recovery of employment for small businesses in the chain and stimulating market demand.

The ministry will further promote the implementation of supportive policies to prevent and clear arrears to small businesses, promote symbiosis between small, medium and large enterprises, and establish a system to nurture high-quality small businesses, Xu said.

In terms of financial support, China will lead large state-owned banks to provide 1.6 trillion yuan (US$237.31 billion) of inclusive loans to small and micro enterprises this year, said Mao Hongjun of the China Banking and Insurance Regulatory Commission.

The commission will also encourage banks and insurance institutions to increase lending to ease the repayment difficulties of small businesses and help them better manage their risks through tailored services and insurance products.