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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: China promises aid to small businesses AP - Thursday, August 20 BEIJING - China promised tax breaks and other aid Wednesday to help small businesses get through the economic slump, a possible lifeline to entrepreneurs who have struggled while its huge stimulus went to state companies. ADVERTISEMENT A Cabinet statement promised help to improve technology and boost exports in industries including appliances and autos. It gave no details but said troubled companies would be allowed to reduce or postpone paying taxes for social welfare programs for employees. The measure could help private companies that produce up to two-thirds of China's economic output and most of its new jobs but have lagged as Beijing rolled out its 4 trillion yuan ($586 billion) stimulus. The plan is based on building highways and other public works and channeled the bulk of the money through state-owned construction, steel and cement companies. "Promoting the development of small and medium-size enterprises is an important foundation for promoting the stable and relatively fast growth of the people's economy," the Cabinet statement said. Boosted by the stimulus, China's economic growth accelerated to 7.9 percent in the latest quarter, up from 6.1 percent the previous quarter. But growth in retail sales and other private sector activity has been slower to recover, and economists and the government say continued improvement depends on more stimulus spending. China's bank regulator said in February that lenders were ordered to help small companies survive, but it is unclear what they have done. Many prefer to lend to state industry, which is considered a better risk and is supported by local leaders. Wednesday's statement made no mention of state or private industry, but all of China's private companies are smaller. Some private manufacturers have benefited from state subsidies for appliance purchases in the poor countryside and for encouraging sales of more fuel-efficient automobiles. Beijing previously announced aid plans for 10 fields including steelmaking and shipbuilding but most targeted government-dominated industries. ___ Chinese Cabinet (in Chinese): http://www.gov.cn Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: China's Economy FOREX-Market unease lifts yen, but euro resilientReuters - Thursday, August 20 METALS-Copper hits 2-wk low; China rattles investorsReuters - Thursday, August 20 Uncertainty about world economy sends stocks lowerAP - Thursday, August 20 Survey: Optimism about global economy is growingAP - Thursday, August 20 Related Articles: Business Deere's earnings fall 27 percentReuters - Thursday, August 20 Israel shekel dips, no sign of cbank interventionReuters - Thursday, August 20 Tween Brands posts smaller 2Q lossAP - Thursday, August 20 Deere posts 27 pct decline in 3Q profitAP - Thursday, August 20 Foreign investors are bullish on India-finance secyReuters - Thursday, August 20 Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed UK UFO sightings spiked when blockbusters released Canadian singer Celine Dion pregnant with second child Egypt warns pharaohs' tombs could disappear Sleep disorders linked to premature deaths: study Michael Jackson's 51st birthday to be his burial day: father View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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