BUSINESS China helping small businesses realize digital transformation

BUSINESS

China helping small businesses realize digital transformation

People's Daily Online

09:00, July 08, 2020

Small businesses in China have demonstrated strong vitality during the COVID-19 epidemic by making full use of the internet.

Photo: pixabay.com

Statistics indicated that an average of one million small shops have opened, resumed operations or accelerated their digital transformation every week since late April. About 12 million small businesses have registered positive growth compared with the same period last year.

One of the major ways that COVID-19- affected small businesses have managed to get through their financial difficulties is to receive loans from online banks, according to a report on the financing of small and micro businesses between the year 2019 and 2020.

Internet platforms have also supported small businesses in such areas as supply of goods, data intelligence, financing, retaining clients, and payment.

Online food delivery platform Meituan Dianping has waived startup funds for businesses applying to join the platform to relieve their capital pressure. E-commerce giant JD.com has launched a campaign to provide each small shop with 100,000 yuan in interest-free credit for purchases.

With regard to supporting small and micro enterprises in commerce and trade circulation, the Ministry of Commerce will work together with the relevant departments and make the promotion of the small shop economy its main task, accelerating their development in facilitation, characteristics and digitization, according to Gao Feng, spokesman of the ministry.

The State Taxation Administration (STA) recently issued a notification to defer income tax payments for small and micro companies, as well as individually-owned businesses, to help them resume business and production.

A joint initiative proposed by MYbank and the All-China Federation of Industry and Commerce in March was joined by more than 100 commercial banks, and has so far covered 10 million micro businesses.

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