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The central government has earmarked 3 billion yuan (US$375 million) this year to help the development of small and medium-sized enterprises (SMEs), said Vice Minister of Finance Zhu Zhigang.

 

The minister told a national SMEs working conference that between 2006 and 2010, his ministry was considering adopting preferential tax policy toward the SMEs and create favorable conditions for them in raising funds.

 

He said the ministry would guarantee that the SMEs get certain proportion of government procurement during the country's 11th Five-Year Plan period (2006-2010) .

 

"The move aims to help curb market monopoly by big enterprises and encourage fair competition," he said.

 

He noted that big enterprises are in a superior position in competition, while the government should give appropriate support to the SMEs that were in an inferior position in access to capital and technology.

 

The SMEs, a great contributor to China's economic growth, have created huge job opportunities and technology advancement.

 

(Xinhua News Agency October 2, 2006)