Premier Li Keqiang of the State Council presided over an Executive Meeting of the State
Council on May 5, to: discuss further relief measures for small, medium, and micro enterprises
and individual industrial and commercial households to ensure stable employment of market
players; determine measures to promote the stability and quality of foreign trade to help
stabilize the economy and the industrial chain supply chain. The meeting pointed out that small,
medium, and micro enterprises and individual industrial and commercial households are an
important foundation for stabilizing the economy and the main support for stabilizing
employment. At present, the difficulties of relevant market entities have increased significantly.
It is necessary to implement the Party Central Committee and the State Council decisions and
increase assistance such as tax rebates, tax reductions and fee reductions, delay in payment of
social security premiums, logistics guarantees, and promotion of enterprises' resumption of
work and production. It also called for ensuring that all remaining tax credits for small and
micro enterprises, individual industrial and commercial households and eligible medium-sized
enterprises are fully refunded before June 30. It asked large state-owned banks, who have added
1.6 trillion yuan in inclusive small and micro loans this year, to strengthen proactive
services. All localities should arrange special funds for the relief of small, medium, and micro
enterprises and individual industrial and commercial households, and provide subsidies for rent,
guarantee fees, loan interest and other subsidies for those with operational difficulties. Among
a series of measures, local governments were encouraged to implement phased preferential
electricity prices for small and micro enterprises and individual industrial and commercial
households and "non-stop supply of water and electricity". The meeting emphasized that it is
necessary to consolidate responsibilities, especially the responsibilities of local governments,
and solve the problem of policy implementation blocking points. In order to help foreign trade
enterprises cope with difficulties, the meeting decided that the focus should firstly be on
securing orders and stabilizing the import and export of key industries and labour-intensive
industries; secondly on sea and airport and making good use of air cargo capacity etc. It also
asked that the RMB exchange rate be kept basically stable. Xinhua reported that on May 7, Premier Li Keqiang held a National Video and Telephone
Conference on Employment Stabilization in Beijing. Li Keqiang "pointed out that stable
employment is related to the livelihood of the majority of families and is the key support for
the economic operation in a reasonable range. The current employment situation is complex
and severe. All regions and departments should follow the guidance of Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era, conscientiously implement the decisions
and arrangements of the CPC Central Committee and the State Council, increase the
implementation of the employment priority policy, and maintain stable employment and stable
economic performance". Politburo member and Vice Premier Hu Chunhua also attended the
meeting and delivered a speech.
(Comment: Bloomberg on May 8 reported that Premier Li Keqiang had warned of a
"complicated and grave" employment situation as China imposes lockdowns.)
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