Coronavirus Outbreak: Beijing introduces policies to support companies
Beijing has announced 45 comprehensive measures to stabilize the economy as the Chinese capital recovers from its latest coronavirus outbreak. Our reporter You Yang visited two companies in the city's Economic-Technological Development Area, known as Beijing E-town, to see how these policies support local businesses.
Beijing is ramping up fiscal support for its local economy.
Authorities say the measures include tax reduction, rent reduction and extension of loans to several enterprises.
One of them is Sintered Metal Company, or SMC. It's a world-leading automatic control equipment maker, located at Beijing Economic-Technological Development Area.
MA QINGHAI General Manager SMC Investment Management China Co. "As we know the global supply chain has been hit by the pandemic. To cope with that, we need to store raw materials in advance. So, we need to rent several warehouses. The local government has helped us find a 4,000 square-meter warehouse. We've also received rent subsidies, which is one yuan per square meter per day."
A State-owned enterprise called "Beijing Yizhuang Investment Holding Limited" has also exempted micro- and small-sized enterprises from paying rent for six months.
GENG BIN Manager, Department of Investment and Development Beijing Yizhuang Investment Holdings Limited "Our group has 48 industrial parks, and over 3,000 enterprises are renting office buildings in these parks. So far, more than 700 companies have benefitted from the rent reduction policy. Most of them are micro- and small-sized enterprises, and individual businesses. We offered nearly 200 million yuan, or about 30 million U.S. dollars in tax reductions until June."
In terms of stabilizing the supply chain, Beijing E-town provides about 100 million yuan, which is about 15 million U.S. dollars logistics subsidies for industrial enterprises operating in the area.
Local authorities are also providing cash support for wholesale, retail and catering companies to help them get through.
MA QINGHAI General Manager SMC Investment Management China Co. "We are a foreign enterprise and quite happy to see that the local government is supporting companies during the pandemic. These measures give us more confidence to better operate in China. We are planning to set up more factories across the country, including one in Tianjin."
GENG BIN Manager, Department of Investment and Development Beijing Yizhuang Investment Holdings Limited "As a State-owned enterprise, we will continue to fully implement the fiscal support policies devised by the government, and continue to support micro-, small- and medium-sized enterprises, so that they can better operate during the pandemic."
Besides local authorities, China's top administrative body has also stressed the importance of boosting consumption, stabilizing the labor market and accelerating work resumption.
YOU YANG Beijing "China's State Council has rolled out a comprehensive package of measures to boost the Chinese economy, ranging from support for small businesses to stabilizing industrial and supply chains. Some of these measures are expected to land in this June. You Yang, CGTN, Beijing."