Policy Boosting Boosts Confidence in Business Entities (Mid year Economic Observation) Monetary Policy | Policy | Economy

The meeting pointed out that "we should make good use of policy space, find the right direction for development, and solidly promote high-quality economic development" and "continue to implement active fiscal policies and prudent monetary policies, continue, optimize, improve and implement tax and fee reduction policies, play the role of aggregate and structural monetary policy tools, and strongly support technological innovation, the development of the real economy, and small and micro enterprises".

Since the beginning of this year, various regions and departments have successively introduced policy measures to support the development of a wide range of business entities. With the gradual implementation and effectiveness of policies, the burden on enterprises is further reduced, development confidence is more abundant, and development vitality is enhanced. In the first half of the year, a total of 927.9 billion yuan was added nationwide for tax reduction, fee reduction, and deferred tax refunds; Small and medium-sized enterprises have benefited the most significantly, with a total of 576.6 billion yuan in new tax reductions and deferred tax refunds, accounting for approximately 62%.

Solve difficult problems, reduce burden, and help enterprises climb and overcome obstacles

Since the beginning of this year, macroeconomic policies have maintained continuity, stability, and targeted measures, and strengthened coordination and cooperation among various policies; Various regions actively innovate assistance methods and methods, improve the effectiveness of policy implementation, help enterprises alleviate business pressure, enhance the confidence to overcome difficulties, expand production, and achieve recovery and development.

——Fully leverage the dual functions of monetary policy tools in terms of both quantity and structure, and provide credit support for enterprises.

"The tea garden property rights confirmation helps enterprises open up financing channels, and our spring tea achieves both production and sales prosperity," said Wang Genhai, the person in charge of Haiyun Zhenpin Tea Industry Co., Ltd. in Fuding City, Fujian Province.

"Difficulty in property rights confirmation is a financing bottleneck for agricultural enterprises. Fuding City actively carries out property rights registration work for production factors such as mountains, tea gardens, orchards, and factories. Based on this, financial institutions tailor credit products according to the actual needs of characteristic agricultural product enterprises, and promote the transformation of agricultural enterprises' resources into assets and assets into funds." said the relevant person in charge of the Fujian Regulatory Bureau of the State Financial Supervision and Administration.

Structural monetary policy tools focus on key areas, are reasonable and moderate, and have both progress and retreat, continuously increasing support for key areas and weak links of the national economy such as inclusive finance and technological innovation. At the end of June, the balance of inclusive small and micro loans increased by 26.1% year-on-year, 14.8 percentage points higher than the growth rate of various loans; 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.

In the first half of the year, the People's Bank of China lowered the reserve requirement by 0.25 percentage points, released long-term liquidity, enhanced the stability and sustainability of total credit growth, and effectively served the real economy. RMB loans increased by 15.73 trillion yuan, an increase of 2.02 trillion yuan compared to the same period last year.

Funds are guaranteed to help the majority of business entities grow upwards.

——Combining institutional arrangements of tax and fee support policies with phased measures to reduce the tax burden on enterprises.

"Since last year, one tax and fee reduction policy after another has helped us overcome difficulties," said Huang Fei, Chairman of Guxiangyuan Catering Co., Ltd. in Qiyang City, Hunan Province. "In the first half of this year, the policies continued to be optimized. As of the end of June, we have enjoyed various tax and fee reductions of 97000 yuan, and the funds for purchasing raw materials have been guaranteed. The money for increasing outdoor dining areas and attracting new customers has also been secured."

Continuation and optimization of income tax policies for small and micro enterprises and individual businesses; Reduce the value-added tax collection rate for small-scale taxpayers to 1%; Small scale taxpayers with monthly sales of 100000 yuan or less are exempt from value-added tax... The finance and taxation department has issued a series of tax and fee preferential policies that continue to be optimized and innovatively implemented, and small and micro enterprises and individual businesses have received a heavy tax and fee "gift package".

——Multiple measures such as returning subsidies and matching supply and demand will be taken simultaneously to enhance the ability of enterprises to stabilize and expand their positions.

Focusing on the new situation and characteristics of employment and entrepreneurship, various regions and departments have implemented a series of policy measures to enhance the ability of enterprises to stabilize and expand their positions. Inner Mongolia continues to directly distribute stable job return funds to eligible enterprises through the "no application, no enjoyment" model; Heilongjiang provides employment service specialists to enterprises with strong employment driving capabilities, and offers a package of support measures such as employment and training; In Guangdong, high-speed rail stations are also "employment stations", achieving rapid supply and demand docking of "recruitment upon leaving the gate" and "job selection upon arrival"

In the first quarter, the Ministry of Human Resources and Social Security and other departments jointly launched the Spring Breeze Action and Employment Assistance Month, holding a total of 58000 recruitment activities; Solidly carry out vocational skills training, distribute over 2.61 million vocational training vouchers, and provide subsidized vocational skills training for 3.5 million people nationwide.

"Various policies to assist and benefit enterprises have maintained continuity and stability, enhanced precision and targeting, helped enterprises alleviate operational pressure, overcome difficulties, expand production, and achieve recovery and development," said Zeng Gang, director of the Shanghai Finance and Development Laboratory.

Small and medium-sized enterprises are the mainstay of private enterprises. Data shows that since the beginning of this year, China's private enterprises have recovered and shown strong resilience and vitality. In the first five months, 3.764 million new private enterprises were established, a year-on-year increase of 17.2%, which was 6.5 percentage points faster than the growth rate in the first quarter. As of the end of May, there were a total of 86.92 million tax related business entities nationwide, a year-on-year increase of 7.5%.

"The recently released" Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of Private Economy "proposes to accurately formulate and implement various support policies, timely respond to concerns and interest demands, and effectively solve practical difficulties. This is a great encouragement for us, inspiring us to continue to work hard, and giving us more confidence in the future of private enterprises." Wang Genhai said.

Boost momentum and vitality, accumulate momentum for long-term development

Each region and department focuses on long-term development, and the policy of benefiting enterprises focuses on stimulating the greater potential of various business entities, providing strong support for promoting sustainable economic growth.

——Encourage R&D investment and assist enterprises in shaping new development momentum through technological innovation.

Fujian Xiamen Tuobao Technology Co., Ltd. is a national level specialized and innovative enterprise that focuses on intelligent overall solutions for independent power supply systems. In the first half of the year, the company signed a large order but faced a significant funding gap. China Merchants Bank Xiamen Branch has utilized the technology innovation refinancing policy to provide timely special credit support of 30 million yuan to enterprises, helping them better implement and apply their innovative achievements.

As of the end of June, the balance of loans for specialized, refined, and new small and medium-sized enterprises in China was 2.72 trillion yuan, an increase of 459.8 billion yuan compared to the same period last year, maintaining a growth rate of over 20% for 14 consecutive months; The balance of loans for technology-based small and medium-sized enterprises was 2.36 trillion yuan, an increase of 472.7 billion yuan compared to the same period last year, with a growth rate of 25.1%.

Implementing tax incentives and fiscal incentives to support scientific and technological innovation, establishing a normalized working mechanism for financial support for enterprise scientific and technological innovation system, and improving the mechanism for industry university research achievement docking and industrialization... The departments of finance, taxation, finance, and science and technology deepen collaborative cooperation, gather policy forces, guide enterprises to increase research and development investment, enhance their scientific and technological innovation capabilities, and accumulate strength for long-term development.

——Guide development expectations and encourage private enterprises to demonstrate their skills in the field of the "four new economies".

Beijing has launched the first batch of public promotion projects to private capital, with a total of 149 proposed projects and a total investment of 130.8 billion yuan; Shaanxi has provided upgraded guarantees in terms of land use, environmental impact assessment, and other aspects for private investment projects included in the list of key projects at the city and county levels. Since the beginning of this year, various regions have strengthened guarantees, provided excellent services, and implemented measures to create a favorable environment for various business entities to invest and start businesses, and stimulate internal vitality. A large number of private enterprises are bravely competing in the "four new economies" of new technologies, new industries, new formats, and new models, with a good development momentum. As of the end of May, the number of private enterprises in China's "four new economies" has exceeded 25 million. In the first five months, there were 2.15 million newly established private enterprises in the "Four New Economies", accounting for 57.1% of the newly established private enterprises.

——Consolidate infrastructure and promote enterprises to gather and form new development advantages.

In recent days, in the Luojiang Economic Development Zone of Deyang City, Sichuan Province, a new high standard industrial sewage treatment plant has been undergoing overall inlet water commissioning, preparing for official operation and better meeting the sewage treatment needs of high-end manufacturing enterprises. Zhou Xiaolin, Director of the Management Committee of Luojiang Economic Development Zone, said that in response to the characteristics of the advanced materials industry, the local government is actively supporting the construction of modern factories and optimizing public services. "Nowadays, high-performance fiber and composite materials, polymer materials, and optoelectronic materials enterprises are 'flocking' to settle down, aggregating the industrial ecology and amplifying competitive advantages."

Guangxi actively promotes the construction of smart transportation and promotes the landing of new infrastructure for digital, networked, and intelligent transportation; Tianjin is focusing on building 5G base stations, promoting industrial digitization and digital industrialization... The construction of new infrastructure is accelerating, promoting the deep integration of the digital economy with advanced manufacturing and modern service industries, and supporting the vigorous development of modern industrial clusters and digital industrial parks in various regions.

"Strengthening infrastructure construction is conducive to building a solid foundation for high-quality development and providing broader growth opportunities for various business entities," said Shao Yu, Chief Economist of Oriental Securities.

Stable expectations and excellent services, cultivating a fertile ground for the growth of business entities

The Political Bureau meeting of the Communist Party of China Central Committee held on April 28th pointed out the need to adhere to the "two unwavering principles", eliminate legal and regulatory barriers and implicit barriers that affect fair competition and common development of enterprises of all types of ownership, continuously boost the confidence of business entities, and help enterprises recover their vitality.

There is no best business environment, only better. The tax department has made good use of tax big data to accurately match the needs of taxpayers, and has accurately promoted tax and fee preferential policies for 229 million households this year; Market regulatory authorities have strengthened intelligent supervision, established a comprehensive electronic business license library, actively expanded application scenarios, and significantly saved labor, documents, and time costs... Since the beginning of this year, various regions and departments have deeply promoted the reform and implementation of key areas of the business environment, promoted the improvement of government services and efficiency, and laid a fertile ground for the growth and growth of business entities.

——Optimize processes, improve speed, and relieve pressure for enterprises.

"Our business involves multiple fields. Since the electronic tax bureau achieved comprehensive declaration of multiple taxes, we can complete the declaration and payment of relevant taxes in one interface, which not only saves time, improves work efficiency, but also reduces human resource costs." said Song Chuqiao, Deputy Director of the Financial Management Center of Beijing Shougang Construction Investment Co., Ltd.

Smooth domestic and international dual circulation, actively unblock bottlenecks and connect breakpoints. Promote the comprehensive declaration of "multi tax integration", streamline enterprise registration documents and materials, and take a series of targeted measures to optimize the business environment, allowing enterprises to open up their hands and seek development; Expanding the pilot scope of facilitation measures such as "ship side direct lifting", "port arrival direct loading", and "linkage unloading", export tax refunds have been repeatedly accelerated, supporting policy services have been continuously improved, and enterprises have more confidence in exploring overseas markets.

——Zero distance, non-contact, and more intelligent government services.

Information "running errands" replaces taxpayers "running errands". As of the end of June, a total of over 270000 cross provincial and cross regional electronic tax payments were processed nationwide, with taxes exceeding 38 billion yuan, accounting for 85% of the total business volume and 65% of the tax paid in 2022, respectively; A total of 197 commercial banks have launched cross provincial and cross regional electronic tax payment services, an increase of 43 compared to 2022; 180 commercial banks, accounting for over 90%, support real-time tax deduction and bank end query tax processing methods.

Shandong Qingdao provides various personalized approval service modes for enterprises, including "offline one-time processing", "online processing throughout the process", and "doorstep processing nearby"; An integrated government service platform has been established and put into operation in Xi'an, Shaanxi, connecting the national, provincial, and municipal government service systems; Guangdong and Guangzhou are accelerating the improvement of digital enterprise service platforms, allowing enterprises to independently choose "packages" for services. Multiple tasks can be handled at once with one application... Various regions are actively exploring, focusing on the needs and expectations of business entities, and providing precise, convenient, and intelligent services to enterprises through digital means.

Professor Li Xuhong from the National Institute of Accounting in Beijing believes that adhering to the focus of development on the real economy requires steady and down-to-earth efforts, as well as the courage to explore new fields and tracks, and cultivate new competitive advantages. In the second half of the year, we will continue to implement and refine the various policies that have been introduced, while actively promoting policy optimization and deepening reforms, combining the effectiveness of policies with stimulating the vitality of business entities, and promoting the effective improvement of quality and reasonable growth of quantity in the economy.