The central government has earmarked 3 billion yuan
(US$375 million) this year to help the development of small and
medium-sized enterprises (SMEs), said Vice Minister of Finance Zhu
The minister told a national SMEs working conference
that between 2006 and 2010, his ministry was considering adopting
preferential tax policy toward the SMEs and create favorable
conditions for them in raising funds.
He said the ministry would guarantee that the SMEs get
certain proportion of government procurement during the country's
11th Five-Year Plan period (2006-2010)
"The move aims to help curb market monopoly by big
enterprises and encourage fair competition," he said.
He noted that big enterprises are in a superior
position in competition, while the government should give
appropriate support to the SMEs that were in an inferior position
in access to capital and technology.
The SMEs, a great contributor to China's economic
growth, have created huge job opportunities and technology
(Xinhua News Agency October 3, 2006)