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Business / Economy

Survey captures small and medium-sized companies' concerns

By HUANG YING (China Daily) Updated: 2015-10-22 09:48

Rising labor costs, financing difficulties and tax issues continue to be the key concerns of enterprises, according to a survey released on Tuesday.

The China Center for Promotion of SME Development surveyed more than 4,000 enterprisers across 31 provinces.

Rapidly rising labor cost remains top of the major concerns among enterprises, and 79 percent of them have reflected this issue, 10 percentage points higher than the previous year. Meanwhile, 66 percent of respondents have complained about the high cost of financing, 6 percentage points up compared with last year, said Qin Zhihui, director of the center.

The list system for enterprise-related charges has helped reduce the burdens of enterprises nationwide over the past year.

"More than 95 percent of the respondents said that the enterprise-related arbitrary charges and unjustified financial levies have been effectively contained, and 80 percent of the enterprises think the list system has served very well as a reassuring force for them," said Xin Guobin, vice-minister of industry and information technology.

Excessive fees for verification and approvals in certain regions and industries like energy and finance are a worry, said Xin.

The government has been laying stress on reducing bottlenecks for enterprises and enhancing awareness of regulations among companies.

"This is of great significance under current economic circumstances as it could help strengthen enterprises' confidence as well as contribute to stabilizing economic growth," said Xin.

Companies have been urging new government policies to cut corporate tax and offer exemptions. Some 80 percent of the respondents reinforced their appeal through the survey.

Similarly, 68 percent of respondents hoped the unnecessary verification and approval process will be canceled. And 63 percent of the respondents demanded further lowering the cost of financing.

"It will be a long-term battle to ease the burdens on enterprises," said Xin.

About 90 percent of the respondents in the survey were small and medium-sized enterprises. The private sector took a dominant share of 56 percent while their State-owned counterparts accounted for 12 percent of all the respondents.

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