2017年CRI Draft amendment to SME law calls for more favorable policies

 

Top Chinese lawmakers reviewed potential legal amendments¹ to help bolster³ small and medium-sized companies, including potential tax breaks and easier access to financing.

Panel discussions on the draft revisions were held on Tuesday in Beijing at a bi-monthly session of the National People's Congress (NPC) Standing⁴ Committee.

"Qualified⁵ small and micro-sized companies could have their corporate⁶ income taxes and value-added taxes reduced or eliminated. Businesses started by university graduates and army veterans will also enjoy preferential tax policies and reductions in fees. Tax reductions might also be provided to startups, as well as to new companies that are devoted⁷ to technological⁸ innovation," said Sun Shubao, an official with the NPC.

The official said the amendments also call for policies that provide specific tax deductions⁹ for companies that can prove they innovate¹⁰.

China's central government has announced plans to reduce corporate taxes by 1 trillion yuan this year.

Out of the 20 million businesses registered in China, around 98% are small to medium-sized companies. They generate about 60% of China's GDP and around 80% of the jobs. However, obtaining loans has remained a headache for many of these businesses, as China's state-owned banking¹¹ sector¹² remains¹³ reluctant to provide loans to non-government enterprises.

While the current version of the draft does attempt to address the issue, Li Lu, an NPC standing committee member reviewing the document, said the text could be made more specific to ensure easier access to financing for these companies.

"The draft says 'we should encourage and guide banks to provide more loans to small and micro-sized companies.' But the wording is very soft. I suggest we change it to 'we should guide financial institutions to allocate¹⁴ specific percentages of their financing to these companies.' This could force banks to prioritize financial services for these companies," said the lawmaker.

Another goal of the draft is to streamline¹⁵ administrative¹⁶ approvals, delegate powers and improve regulations and services for businesses. A leading government department will be designated to manage SME affairs under the amendment². Currently, no such agency has been assigned, meaning responsibilities are not defined, making it difficult to review the law's implementation¹⁷.

Additionally, protecting the legal rights of SMEs is also being considered in the new draft.

"Our current law regarding SME development mainly provides guidance and encouragement but not specific terms of legal protection for these companies. When a company's rights are violated, the law can't come to its aid. I recommend that chapters or terms are added to outline legal responsibilities and provide solutions to conflicts," said Wang Qijiang, another member of the NPC Standing Committee.

Tuesday’s session was the second review of the document, which is subject to future readings before it is codified¹⁸.

1 amendments   

（法律、文件的）改动( amendment的名词复数 )； 修正案； 修改； （美国宪法的）修正案

参考例句：

• The committee does not adequately consult others when drafting amendments. 委员会在起草修正案时没有充分征求他人的意见。
• Please propose amendments and addenda to the first draft of the document. 请对这个文件的初稿提出修改和补充意见。

2 amendment   

n.改正，修正，改善，修正案

参考例句：

• The amendment was rejected by 207 voters to 143.这项修正案以207票对143票被否决。
• The Opposition has tabled an amendment to the bill.反对党已经就该议案提交了一项修正条款。

3 bolster   

n.枕垫；v.支持，鼓励

参考例句：

• The high interest rates helped to bolster up the economy.高利率使经济更稳健。
• He tried to bolster up their morale.他尽力鼓舞他们的士气。

4 standing   

n.持续，地位；adj.永久的，不动的，直立的，不流动的

参考例句：

• After the earthquake only a few houses were left standing.地震过后只有几幢房屋还立着。
• They're standing out against any change in the law.他们坚决反对对法律做任何修改。

5 qualified   

adj.合格的，有资格的，胜任的，有限制的

参考例句：

• He is qualified as a complete man of letters.他有资格当真正的文学家。
• We must note that we still lack qualified specialists.我们必须看到我们还缺乏有资质的专家。

6 corporate   

adj.共同的，全体的；公司的，企业的

参考例句：

• This is our corporate responsibility.这是我们共同的责任。
• His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。

7 devoted   

adj.忠诚的，忠实的，热心的，献身于...的

参考例句：

• He devoted his life to the educational cause of the motherland.他为祖国的教育事业贡献了一生。
• We devoted a lengthy and full discussion to this topic.我们对这个题目进行了长时间的充分讨论。

8 technological   

adj.技术的；工艺的

参考例句：

• A successful company must keep up with the pace of technological change.一家成功的公司必须得跟上技术变革的步伐。
• Today,the pace of life is increasing with technological advancements.当今， 随着科技进步，生活节奏不断增快。

9 deductions   

扣除( deduction的名词复数 )； 结论； 扣除的量； 推演

参考例句：

• Many of the older officers trusted agents sightings more than cryptanalysts'deductions. 许多年纪比较大的军官往往相信特务的发现，而不怎么相信密码分析员的推断。
• You know how you rush at things,jump to conclusions without proper deductions. 你知道你处理问题是多么仓促，毫无合适的演绎就仓促下结论。

10 innovate   

v.革新，变革，创始

参考例句：

• We must innovate in order to make progress.我们必须改革以便取得进步。
• It is necessary to innovate and develop military theories.创新和发展军事理论是必要的。

11 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

12 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

13 remains   

n.剩余物，残留物；遗体，遗迹

参考例句：

• He ate the remains of food hungrily.他狼吞虎咽地吃剩余的食物。
• The remains of the meal were fed to the dog.残羹剩饭喂狗了。

14 allocate   

vt.分配，分派；把…拨给；把…划归

参考例句：

• You must allocate the money carefully.你们必须谨慎地分配钱。
• They will allocate fund for housing.他们将拨出经费建房。

15 streamline   

vt.使成流线型；使简化；使现代化

参考例句：

• We must streamline our methods.我们必须简化方法。
• Any liquid or gas passing it will have streamline flow.任何通过它的液体或气体将呈流线型的流动。

16 administrative   

adj.行政的，管理的

参考例句：

• The administrative burden must be lifted from local government.必须解除地方政府的行政负担。
• He regarded all these administrative details as beneath his notice.他认为行政管理上的这些琐事都不值一顾。

17 implementation   

n.实施，贯彻

参考例句：

• Implementation of the program is now well underway.这一项目的实施现在行情看好。

18 codified   

v.把（法律）编成法典( codify的过去式和过去分词 )

参考例句：

• In the meantime, however, Kennecott had been codified elsewhere in the Act. 然而，“肯尼考特”一案已被编人法案。 来自英汉非文学 - 环境法 - 环境法
• Congress has since codified this holding. 从那时以来，国会编纂整理了最高法院的这一裁定。 来自英汉非文学 - 行政法