China delivers on commitment to supporting private enterprises

China is delivering on its commitment to supporting its private sector with concrete actions, with many firms gaining easier access to finance as part of a broader push to boost private sector growth.

The government has introduced interest subsidy policies on select loans to ease the financial burden on private businesses.

Recently, Fuzhou O-Zone Optics Technology, a private company based in Fuzhou City, east China's Fujian Province, received a loan of five million yuan (about 686,666.98 U.S. dollars).

The company can not only withdraw the funds easily online, but also benefit from an one-percent annualized interest subsidy.

"For a loan of five million yuan, it was once unimaginable for a private enterprise to secure an interest rate of about one or two percent. We do feel the country's support for private enterprises," said Lu Guihua, chairman of Fuzhou O-Zone Optics Technology.

As for collateral requirements, banks have incorporated 12 scientific and technological indicators, such as the proportion of research and development investment and the number of patents, into their evaluations, enabling companies to secure loans based on intangible assets.

To address the financial challenges facing private enterprises, multiple departments have introduced a slew of supportive policies.

China's top economic planner, the National Development and Reform Commission (NDRC), plans to establish a national venture capital guidance fund to drive nearly one trillion yuan in local and private investment.

China's central bank, the People's Bank of China (PBOC), will optimize re-lending policies related to technological innovation and industrial upgrading, and enhance credit support for private as well as small and micro enterprises.

Meanwhile, various localities have launched programs to support private, small, and micro enterprises.

Shanghai has introduced 20 measures to make it easier for private businesses to obtain financing, aiming to push the city's balance of inclusive loans to small and micro enterprises above 1.5 trillion yuan this year.

Government departments and banks in north China's Hebei Province have dispatched officials to meet with representatives of enterprises and industrial parks, to offer targeted financing services.

China's efforts to support private enterprises are beginning to show results.

At the end of February, the balance of inclusive small and micro loans increased by 12.4 percent year on year, significantly outpacing the growth of other loan categories.

The Small and Medium-Sized Enterprises (SME) funding Index rose by 1.0 point from the previous month, signaling a recovery in business sentiment.

China delivers on commitment to supporting private enterprises

The United States' push to revoke China's Permanent Normal Trade Relations (PNTR) status, or granting the Most Favored Nation (MFN) treatment permanently, is a clear instance of unilateralism and trade protectionism, according to a white paper released by China's State Council Information Office on Wednesday.

The white paper, titled "China's Position on Some Issues Concerning China-US Economic and Trade Relations", aims to clarify the facts about the bilateral economic and trade relations between the two countries and lay out China's position on relevant issues.

The white paper said that the PNTR status is the ballast of China-U.S. economic and trade relations.

The U.S. push to revoke this status violates the rules of the World Trade Organization's (WTO), undermines China-U.S. relations, and disrupts the global economic order, the white paper noted.

According to the white paper, WTO rules require its members to unconditionally grant MFN treatment to all other members, a requirement that has binding legal force.

Over the past two decades, the PNTR has served to stabilize China-U.S. economic and trade relations. Revoking China's PNTR status will see China-U.S. economic and trade relations returning to the uncertainty and unpredictability that preceded China's accession to the WTO in 2001.

China opposes any unilateralist and protectionist acts that sabotage the multilateral trading system and hopes that the U.S. will be clearly aware of the possible harm caused by its attempt to revoke China's MFN status, the white paper said.

The white paper called on the U.S. to work constructively with the overwhelming majority of WTO members in safeguarding a fair and reasonable global economic and trade order and environment.

Rescinding China's most favored nation status undermines foundation of China-US trade relations: white paper