SMEs play an important role in economic and social development. Promoting the development of SMEs is an important foundation to maintain a stable and sustained economic growth and a major strategic task to safeguard people's livelihood and social stability. Measures would be taken to help SMEs tackle difficulties, change their development mode, and achieve rapid and sound development.

1. Create a conducive environment for SMEs. Improve the policy and legal system for SMEs; accelerate to draft regulations on financing guarantee; amend SMEs categorizing criteria; take support policy to small enterprises. Work out specific measures to SMEs in terms of government procurement. As to SMEs in temporary difficulty during the financing crisis, favorable policies of postponed social insurance and lowered tax/fee rate can be extended to the end of 2010.

2. Help SMEs in financing. Encourage to establish small enterprise credit risk compensation fund and subsidize financial institutions according to their increased amount of loans given out to SMEs. Gradually increase the scale and proportion of long-term and medium-term loans to SMEs. Establish and improve the financial service system for SMEs. Support and standardize the development of micro-loan companies. Further expand the financing channels for SMEs; accelerate the establishment of the GEM; to increase the scale of direct financing. Steadily increase the issuing scale of short-term financing and collective bonds for SMEs; actively cultivate and standardize the development of property market. Establish guarantee funds and institutions at various levels which are invested by central and local governments and enterprises. Encourage the insurance institutions to actively develop insurance products related to SMEs. Enhance SMEs' credit awareness.

3. Provide more favorable fiscal and taxation policies to SMEs. Increase the central fiscal institutions fiscal budget for the development of SMEs, focusing on supporting their technological innovation, structural adjustment, energy saving and emissions reduction, market exploration, increasing employment and improving the public service system for SMEs. Accelerate the establishment of a National SMEs Development Fund; drive social funds to support the development of SMEs. Implement and improve the preferential taxation policies. Until December 31, 2010, small low-profit enterprises with an annual taxable income not exceeding 30,000 RMB (including 30,000 RMB) could calculate their taxable income at 50 percent of the actual income and pay enterprise income tax at a rate of 20 percent. Clean-up and rectification of fees and reduction burdens on SMEs.

4. Accelerate technological development and structural adjustment of SMEs. Support SMEs to enhance their technological innovation capability and product quality. Speed up technological transformation of SMEs. Central government and local governments should allocate specific funds to support their technological upgrading. Promote energy saving, emission reduction and cleaner production of SMEs. Encourage large-sized enterprises to cooperate with SMEs. Guide the development of SMEs clusters. Support SMEs in emerging industries including R&D, industrial design, software development and animation.

5. Support SMEs in market exploration. Support and guide SMEs to actively explore the domestic market. Support SMEs to participate in various exhibitions and trade shows. Support the establishment of products exhibition center for SMEs; ensure the success of China International SMEs Fair and other exhibitions and trade shows. Support SMEs in exploring international market. Support SMEs to improve their capabilities of market expansion. Help and encourage SMEs to adopt e-commerce in order to reduce the cost of marketing.

6. Strengthen and improve service to SMEs. Actively establish and cultivate integrated service institutions at all levels to provide services to SMEs. Accelerate the building of public service facilities for SMEs, focusing on supporting public service platform, incubator base for small enterprises and information service network for SMEs. Improve government services for SMEs.

7. Improve management level of SMEs. Guide and support SMEs to strengthen management. Vigorously carry out various types of training for SMEs; select 1 million high-growth SMEs to implement comprehensive training for their managers in 3 years. Accelerate SMEs informatization and continue SMEs Information Advancement Project.