State Administration for Market Regulation- Implement classification and targeted assistance for individual industrial and commercial households

During a press conference held by the State Council Information Office on October 14, 2023, the Director of the State Administration for Market Regulation, Luo Wen, emphasized the agency’s ongoing commitment to supporting business entities. He outlined a series of strategic policy measures aimed at bolstering business assistance in response to new central government initiatives.

First, Luo announced plans to guide platform companies in leveraging their traffic to enhance brand visibility and increase transaction volume for merchants within their networks. The State Administration for Market Regulation is set to issue guidelines on harnessing the positive role of online trading platforms to support the development of small and medium-sized enterprises (SMEs). The focus will be on optimizing the allocation of traffic resources, especially for three specific types of businesses: those dealing in agricultural products, specialized retailers, and newly registered entities. Additionally, during major promotional events, increased traffic support will be directed toward merchants on these platforms, empowering them to improve their efficiency and management capabilities while igniting intrinsic market dynamism.

Second, the agency is working to establish quality and reputation as key factors for corporate financing. There is a strong push for financial institutions to incorporate elements of quality capability, management, and branding into their credit approval and risk management frameworks. This initiative particularly seeks to customize financial products and services for SMEs, with differentiated arrangements regarding credit limits, interest rates, financing terms, and repayment methods to enhance accessibility and convenience for businesses. It also aims to leverage a combination of equity, funds, and bond financing tools, potentially increasing the credit limit for quality financing by 300 billion yuan annually, benefiting a wide range of companies.

Third, specific targeted support will be rolled out for individual business owners, who make up the majority of business entities in China, with approximately 125 million registered as of August this year, accounting for two-thirds of the total. Recognizing their vital role in employment stability and economic growth, the administration is categorizing individual entrepreneurs into three types—survival, growth, and development—and four categories based on name, specialty, excellence, and novelty. By the end of this year, a national directory for these classifications will be established. Subsequent policies in areas such as taxation, social security, employment, and financing will be tailored to provide precise assistance, encouraging local governments to offer comprehensive support regarding location, costs, training, and recruitment.

Finally, Luo highlighted an accelerated approach to revising and updating standards related to equipment renewal and the trade-in of old consumer goods. This initiative is expected to stimulate investment and consumption, creating a broader market for enterprises. Since the beginning of this year, the agency has focused on “two new” actions, undertaking 130 standard revision tasks, of which 74 have been completed. They will continue to advance these standards, specifically targeting energy consumption and emissions, product quality and safety, and recycling standards, ensuring that quality enhancements drive both equipment upgrades and the trade-in of old consumer goods.