China to scale up support for employment, entrepreneurship to expand space of employment

China will step up policy support for employment and business start-ups to broaden the space of employment, help market entities emerge and grow, and foster new drivers of growth, according to a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.

The meeting also decided to extend phased government interest discounts on loans for upgrading equipment in some fields, increase credit support for the service sector and introduce phased tax reduction policies to support enterprises to galvanize more investment in enhancing innovation capability.

The meeting underscored the fundamental importance of employment to people's well-being. Starting businesses can increase market entities and boost employment. Stable growth is mainly about stable job creation. Local governments must earnestly fulfill their due responsibilities and step up support for employment and business start-ups.

"The current employment situation is generally stable, but there are concerns as well. Local governments must earnestly fulfill their due responsibilities and take some special measures," Li said.

Companies will be entitled to job creation subsidies for hiring college graduates unable to find jobs two years after graduation and the young registered as unemployed. Unemployment insurance benefits will be issued to the jobless in a timely manner. Skills training for migrant workers will be enhanced to help them stay employed.

The platform economy will be supported in keeping employment stable. Social insurance subsidies will be provided to people engaged in platform-based flexible employment should they face difficulty and college graduates yet to find jobs two years after graduation. Financial institutions will be guided to extend special loan support to key platform companies.

"Unemployment insurance and other support policies must be fully delivered to benefit all those eligible. The financial sector should support market entities in keeping employment stable and creating jobs by starting businesses," Li said.

The repayment of guaranteed start-up loans could be extended for one year if the borrower is in COVID-19-induced distress. Banks will be guided toward offering more credit loans and loan renewals for micro, small and medium-sized enterprises.

Insurance funds, among others, will be encouraged to invest in venture capital funds in accordance with law. The lock-up period for shareholders of venture capital firms will be fine-tuned, to facilitate investors' fund recovery for reinvestment.

Government-financed business incubation bases will provide venues for start-ups free of charge to the best of their ability.

"We have sufficient reserves of pension and unemployment insurance funds, and have yet to tap into our strategic reserves. There is no problem with meeting people's basic needs," Li said.