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Revised law aims for better legal support to SMEs

Source: Xinhua| 2017-08-28 20:25:41|Editor: ying
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BEIJING, Aug. 28 (Xinhua) -- A draft revision to a law to better protect the interests of small and medium-sized enterprises (SMEs) is one step closer to being passed in China.

The draft legislation was submitted for a third reading at the bimonthly session of the National People's Congress (NPC) Standing Committee, which opened Monday.

"The revision to the law on SME development is necessary for improving the business environment, protecting the rights and interests and promoting the healthy growth of SMEs," according to a report introducing the new draft delivered by Sun Baoshu, vice chairman of NPC law committee.

The law committee made several improvements to the revision in the new draft based on suggestions from standing committee members and other sources, the report said.

In the third reading, "to maintain the legitimate rights and interests of SMEs" was inserted into the first section as one of the law's aims, and another clause added "the country protects the property rights and other legitimate rights and interests of SMEs and their investors."

Financial institutions should serve SMEs in an efficient and fair manner, and the country encourages financial institutions to provide SMEs with tailored products and services, according to the draft.

It added an improvement to support small companies in securing employees, as they have difficulties in attracting and retaining skilled workers.

After the previous two readings, which were made by the standing committee in November 2016 and June 2017, the draft revision has "become relatively mature," Sun said.

The law committee called on the standing committee to pass the draft during this bi-monthly session after deliberation, the report showed.

Although SMEs generate the majority of China's GDP and jobs, they have long been confronted with difficulties in retaining employees and getting bank loans, as well as facing high borrowing costs.

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