Countermeasures on Solving Current Plights of SMEs

As increase of production costs, rise of financing difficulties and obstacles of export in the development of SMEs, on one hand, various policies of tax preference and fiscal subsidies should be implemented, and monetary policy of "treating discriminatorily with both encouragements and discouragements" should be carried out; on the other hand, multi-level credit guarantee system should be perfected, and private capital should be guided to develop small and medium banks to establish financing support system of SMEs. In the meantime, aid should be provided for SMEs in industrial transformation and transfer, domestic demand should be actively enlarged, and domestic market of SMEs' products should be expanded, to offset negative impacts of blocked export.