In 2021, the Central Government launched the Spring Rain to Nurture Seedlings special campaign, and has since introduced supporting policies every year based on feedback regarding the actual needs of micro and small businesses (MSBs). This year, the number of participating ministries and commissions increased from seven to nine. Participation of the Ministry of Science and Technology (MOST) and the National Financial Regulatory Administration aims to expand cross-departmental collaboration and better address the needs of MSBs in technological innovation and financing support.
This year's campaign has introduced 15 specific service measures with the aim of facilitating the high-quality development of MSBs as well as individual businesses such as strengthening regular communication and helping these businesses improve compliance to prevent risks. In China, enterprises with total assets not exceeding 30 million yuan ($4.35 million), a workforce of no more than 100 people and annual taxable income of no more than 1 million yuan ($145,000) are classified as MSBs, while individuals or families engaged in industrial and commercial activities are classified as individual businesses. According to figures from the State Administration for Market Regulation, as of 2025, there were more than 180 million MSBs in China.
MSBs have been recognized as the main force in stabilizing employment, providing more than 80 percent of urban jobs. Many specialized and sophisticated enterprises that produce new and unique products, which are key to innovation in the industrial chain, began as MSBs. MSBs also serve as a testing ground for many entrepreneurs, providing low-threshold business opportunities. They are "capillaries" of the economy, playing a crucial role in ensuring growth, taxation and innovation. However, MSBs have weak risk-resistance capabilities and are prone to difficulties. That is why related government departments have initiated the Spring Rain to Nurture Seedlings special campaign.
The special campaign shows how government services can make a real difference for MSBs. In Funing County, Jiangsu Province, for instance, the local tax bureau tackled risks in the waterproof material industry by launching a new support model that teams public lawyers with business liaisons, helping companies avoid supply chain problems. In Bortala Mongolian Autonomous Prefecture, Xinjiang Uygur Autonomous Region, tax authorities partnered with banks to ease loan difficulties for MSBs. Now, businesses with good credit can get financing within two days.
The significance of the special campaign extends far beyond the economic sphere. As a connecting link, it helps reshape the relationship between the government, the market and the public. The campaign requires government officials at all levels to work closely with enterprises, act as liaisons and service providers, and establish regular communication mechanisms through channels such as symposiums, on-site visits and online platforms. This service model breaks down bureaucratic barriers, enabling government officials to truly perceive the needs of enterprises and hear the real voices of the market. The process of transforming the needs and difficulties raised by enterprises into specific instructions for optimizing policies and improving services is now more streamlined. This process is the best practice for building a transparent, predictable and law-based business environment and enhancing business entities' trust of it.
More importantly, during this special campaign, different ministries and commissions break down information silos and policy barriers, shifting from separate efforts to joint operations and forming a powerful synergy featuring information sharing, joint consultation on measures and joint improvement of services. This collaborative model centered on the needs of enterprises is part of the modernization of the governance capacity of the Chinese Government, improving the business environment for market entities and enhancing the internal momentum of the economy.
Copyedited by G.P. Wilson
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