China pledges support for small business, but some SMEs see ‘doom and gloom’ amid regulatory crackdown

China has reaffirmed its support for small and medium-sized enterprises (SMEs), the country’s biggest employers, but some entrepreneurs have turned their noses up at the gesture, saying Beijing’s recent regulatory crackdowns have added pressure on them.

On Tuesday, Chinese Vice-Premier Liu He told an SME forum in Changsha, the capital of central Hunan province, that the government would create a sound business environment to nurture growth among smaller firms, and urged business owners to be active in the nation’s economic development.

“I hope that the majority of entrepreneurs will grasp the objective trends of China’s economic and social development, calmly analyse the situation, assume due social responsibilities from the perspective of the country’s overall interests, deepen their professionalism, strive to innovate, and truly achieve high-quality development,” said Liu, the top economic adviser to President Xi Jinping.

Liu said supporting SMEs was paramount to China’s growth, adding the country’s capital markets will be ready to help the sector innovate and expand.

“SMEs are the mainstay of the market and the main source of jobs … therefore, we must firmly support the development of SMEs,” he said.