China hikes small-firm aid 25%

China’s Ministry of Finance (MOF) said Tuesday that it will spend US$513 million this year to help smaller companies that are having difficulties amid economic restructuring, state media reported. The allocation will be 25% more than last year’s. Small and medium-sized enterprises are important to the economy and job creation. However, many are having financial difficulties as a result of domestic tightening policies and a slowdown in export orders. SMEs were one priority mentioned during the recent Communist Party of China Political Bureau meeting to outline second-half strategies. The ministry said it hoped to improve fiscal and tax policies that affect SMEs, to support their technical innovation and help them upgrade their product mix. An innovation fund for high-tech SMEs would be increased 27.3% from last year, the MOF said.