ANNOUNCEMENT 30 Dec 2016
30th December, 2016 - The Chinese government announced details of a funding scheme for domestic SMEs.
NUMBER OF INTERVENTIONS
PRC Ministry of Finance, December 30th, 2016. (财建〔2016〕841号 财政部关于印发《中小企业发展专项资金管理办法》的通知)
On December 30th, 2016, the Chinese Ministry of Finance released Caijian 2016/841 (hereafter, 'Announcement'), a series of criteria and procedures for government funding of domestic SMEs.
The Announcement put the focus on SMEs, specifically 'local exemplaries', to improve the business environment for domestic SMEs in China.
The Announcement concerns the provision of 'special funds' to SMEs in China; a mechanism of government support that is used in many policies to provide targeted funding for firms that relate to the goals of the policy in question.
The announcement mentions that a total of USD 215m (CNY 1.5bn) are earmarked for funding for 'demonstration areas' during 'demonstration period', which is defined as three years after an area's approval as being a 'demonstration area'. However, the exact value and distribution of those funds is left for later legislation. It does not state that other funds will not be available for areas outside of these.
No sectoral scope in included in the Announcement, therefore it is classified as a horizontal measure.