China announced more help yesterday for its struggling private sector, unveiling a 15 billion yuan (HK$19.35 billion) fund to finance new small businesses and promising tax breaks and more lending for entrepreneurs.
The Cabinet announcement was one of the first concrete measures taken by the government following repeated pledges to help entrepreneurs who have been squeezed by a slump in US and European demand and curbs on bank lending. A Cabinet statement issued after a meeting led by Premier Wen Jiabao said small companies are essential to helping China keep growth fast and stable despite the global downturn.
The government fund will be "primarily to support the start-up of small and micro-enterprises," it said.
It also promised a cut in taxes and fees and said small businesses will be guaranteed a portion of government purchases of goods and services. REUTERS