Key pillar

陈小将

Micro, small and medium-sized enterprises are an important part of the national economy and social development, serving as a key pillar for stabilizing employment and improving people's livelihoods.

Private enterprises, mostly micro, small and medium-sized companies, contribute over 60 percent of China's GDP, 70 percent of technological innovation and 80 percent of urban employment.

Bai Wenxi, vice-chairman of the China Enterprise Capital Union, said that the healthy and sustainable development of micro and small enterprises plays a key role in stabilizing employment and boosting innovation, serving as a driving force for stimulating market vitality and shoring up economic activity.

The new guideline reaffirms the country's commitment to continuously supporting the development of such businesses and the private sector amid mounting uncertainties and headwinds, Bai said.

"It will help stabilize market expectations, boost confidence among businesses, and promote their innovative development," he said.

The next focus should be on further optimizing the business environment, such as by simplifying administrative approval processes and reducing business operating costs, Bai said.

Lou Feipeng, a researcher at the Postal Savings Bank of China, suggested that the government should guide financial institutions to develop innovative and targeted financial products tailored for micro and small businesses.

Amid trade tensions between China and the United States, these businesses also face pressures from declining market demand, Lou said.

"Going forward, it is necessary to address the operational challenges faced by these enterprises by reducing their business costs, especially in areas such as financing and logistics," Lou