Intensive discussions to stabilize expectations, multiple measures to help enterprises reduce burden and increase vitality Xinhua News Agency | Economic Reference News | Vitality
Beijing, July 17th (Xinhua) - The Economic Reference Daily published an article on July 17th titled "Intensive discussions on stabilizing expectations and multiple measures to help enterprises reduce burden and increase vitality.". The article states that in recent days, departments such as the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, the State owned Assets Supervision and Administration Commission, and the State Administration for Market Regulation have successively held enterprise symposiums or roundtable meetings to listen to the business development situation, difficulties faced by enterprises, and relevant opinions and suggestions. The reporter learned that relevant departments will establish and improve communication and exchange mechanisms with enterprises, seize the critical period of economic recovery and industrial upgrading, and further propose practical and effective policy measures to help enterprises reduce costs, increase efficiency, and stimulate vitality.
——Intensive discussions among multiple departments to stabilize expectations
The platform enterprise symposium held on July 12th listened to opinions and suggestions on better promoting the standardized, healthy, and sustainable development of the platform economy.
On July 3rd and 10th, the National Development and Reform Commission held a symposium on private entrepreneurs and a symposium on communication and exchange mechanisms with private enterprises, to listen to the business development situation, difficulties faced by private enterprises, and relevant opinions and suggestions, and to clarify the "continuous improvement of communication and exchange mechanisms with private enterprises" and "targeted solutions to specific demands put forward by enterprises"; On July 6th and 7th, the Ministry of Industry and Information Technology held consecutive manufacturing enterprise symposiums and specialized, refined, new, and small and medium-sized enterprise roundtable meetings, conducting in-depth exchanges with enterprises in multiple industries, clarifying the need to "improve the normal communication and exchange mechanism," propose practical and effective policy measures, "and strengthen policy support and service guarantees.".
At the same time, multiple departments such as the State owned Assets Supervision and Administration Commission, the Ministry of Commerce, and the State Administration for Market Regulation have held roundtable meetings or symposiums aimed at state-owned enterprises, foreign-funded enterprises, and individual industrial and commercial households to understand the business development situation, difficulties faced, and relevant policy recommendations for enterprises of different types and industries.
Sun Wenkai, Vice President of the National Institute of Small and Medium sized Enterprises at Renmin University of China, stated in an interview with reporters that although production has continued to recover since the beginning of this year, overall there is insufficient demand in the domestic market, terminal product prices continue to decline, and enterprises face many operational difficulties. Cost pressures remain significant. Recently, multiple ministries have held intensive enterprise symposiums or roundtable meetings, which have sent clear signals to establish a good communication and exchange mechanism, to provide insights for the subsequent improvement or introduction of relevant policies, further stabilize expectations, and boost confidence.
"In 2023, there will still be a lot of internal and external uncertainties, and the second half of the year is crucial to achieving the annual work goals." Dong Ximiao, Chief Researcher of Zhaolian, said that all departments will carefully listen to the opinions of various enterprises and entrepreneurs, "urgently address the urgent needs of enterprises," accelerate the resolution of pain points and blockages that affect development, and make detailed arrangements for the construction of the business environment, which will make various policy measures more practical.
——Precise efforts to reduce the burden on enterprises
Experts interviewed pointed out that currently, some business entities, especially small and medium-sized enterprises, face more production and operation difficulties, and cost pressures are still evident. In May, the profits of industrial enterprises above designated size nationwide decreased by 12.6% year-on-year, indicating that the demand for cost reduction and efficiency improvement is still prominent. Helping operating entities reduce costs and alleviate difficulties for development is still the top priority of macroeconomic policies.
Recently, multiple departments have launched a combination of policies, including tax incentives and financial services, to help enterprises reduce their burden and develop. According to recent announcements released by the State Administration of Taxation and the Ministry of Finance, eligible enterprises can enjoy the policy of additional deduction of research and development expenses in the first half of the year when prepaying and declaring corporate income tax in July each year starting from 2023, further stabilizing market expectations.
Jiangxi Xusheng Electronics Co., Ltd., as an enterprise engaged in the research and development, printing, production, processing, and sales of printed circuit boards, as well as the production and sales of integrated circuits, electronic components, and electronic equipment, has an average annual R&D investment of over 30 million yuan. This year, the R&D investment is expected to reach 45 million yuan.
"According to the latest tax policy regulations, when the company declares in July, it is expected to enjoy a preferential treatment of 25.3179 million yuan for R&D expenses. The preferential treatment for R&D expenses is calculated based on the actual R&D expenses incurred by the enterprise, and relevant information can be retained for future reference without the need for prior filing or approval, which is both heartwarming and convenient," Tang Wenbo, the company's financial manager, told reporters.
In addition, in the first half of the year, the People's Bank of China continued to improve the market-oriented interest rate formation and transmission mechanism, promoting the stable and moderate reduction of financing costs for the real economy. The market quoted interest rates for loans with a maturity of 1 year and over 5 years have both decreased by 10 basis points. In the first half of the year, the weighted average interest rate for newly issued corporate loans was 3.96%, 25 basis points lower than the same period last year.
"At present, some enterprises are facing significant difficulties in production and operation, and should continue to reduce their tax burden and gradually reduce the pressure on them to pay social security and other fees. In terms of finance, we should further deepen the market-oriented reform of interest rates, further reduce the interest rates of monetary policy tools such as open market operations and lending convenience, guide the LPR to continue to decline, and promote the stable and moderate reduction of financing costs for enterprises." Dong Ximiao said.
According to the recent notice issued by the National Development and Reform Commission and four other departments on the key work of cost reduction in 2023, this year will also focus on continuously reducing institutional transaction costs and further improving the market access system; Deepen the reform of the commercial system, promote the facilitation of market access, approval, and exit, and optimize the development environment for various business entities.
——Continuously stimulating the innovation momentum of enterprises
Continuously reducing costs and burdens for enterprises while promoting innovative development, transformation and upgrading.
On a huge screen, from materials entering the production line to products entering the finished product warehouse, the digital twin factory reflects the real production situation of the factory in real time. In Chongqing Humi Network Technology Co., Ltd., a national specialized and innovative "little giant" enterprise, customized intelligent solutions are helping to promote the digital transformation of traditional industries. Wang Yiyan, senior vice president of the company, said that as a national "double span" industrial Internet platform, Kumi Technology has enabled nearly 50000 manufacturing enterprises nationwide to carry out digital transformation.
"Enterprises are targeting key areas such as industrial operating systems and industrial software to increase their innovation efforts and investment. It is expected that over 30% of annual revenue will be included in research and development. At the same time, they will accelerate the construction of industrial digital capability centers to promote innovative application scenarios for industry leaders and upstream and downstream enterprises." Wang Yiyan said.
Currently, China is continuously strengthening its innovation leadership and promoting enterprises to enhance their innovation and competitiveness. Taking specialized and innovative enterprises as an example, data from the Ministry of Industry and Information Technology shows that from January to May, the revenue and profit margins of "Little Giant" and specialized and innovative enterprises were 9.9% and 7.1%, respectively, which were 4.7 and 1.9 percentage points higher than those of industrial enterprises above designated size.
More supportive measures will further stimulate the ability of enterprises to innovate and develop. The above notice clearly states that targeted tax and fee reduction policies will be introduced in areas such as technological innovation and key industrial chains, and multiple specific measures will be taken to strengthen credit support for innovative, technology-based, specialized, and innovative small and medium-sized enterprises.
At the same time, the Ministry of Science and Technology and the State owned Assets Supervision and Administration Commission are further studying policy measures to support and promote central enterprises to accelerate the construction of technology leading enterprises; The Ministry of Industry and Information Technology has clearly stated that it will solidly carry out the "Three Empowerments" special actions for small and medium-sized enterprises, including "Digital Empowerment", "Science and Technology Achievement Empowerment", and "Quality Standard Brand Value", to accelerate the aggregation of scientific and technological achievements to small and medium-sized enterprises and accelerate the digital transformation of small and medium-sized enterprises.
"With the continuous efforts and effectiveness of various measures, the internal driving force of enterprises will be further strengthened." Sun Wenkai stated that we will continue to create a fair and just policy environment for innovation for all types of enterprises, and improve their innovation capabilities and levels. Reduce the cost of enterprise transformation and upgrading, strengthen guiding financial support, and motivate enterprises to tap potential and increase efficiency. Deepen the integration drive and promote the formation of an innovative ecosystem for the integration of large, medium, and small enterprises.
