BUSY SEASON: Ships sail into a dockyard of Shanhaiguan Shipbuilding Industry Co. Ltd (WANG HANZHI)

Shoring Up SMEs

Chinese officials said on May 27 that more efforts by the government are under way to revitalize the country's small and medium-sized enterprises (SMEs) in boosting economic growth.

SMEs, which create more than 60 percent of economic output and more than 80 percent of urban jobs in the country, are the most numerous and innovative of the country's enterprises.

"They are irreplaceable in boosting economic growth, pushing forward innovation, and providing employment," said Zheng Xin, Director of the SME Department of the Ministry of Industry and Information Technology (MIIT).

The Central Government will budget 11.5 billion yuan ($1.86 billion) in a special fund for SMEs to support their innovation and international cooperation. The money will also be used to provide financial assistance to some SMEs, according to Xu Kemin, Deputy Director of the MIIT SME Department.

The State Council said in April that tax breaks for small and micro firms will be extended until the end of 2016, with companies to be eligible to have their business income tax halved if their taxable income is under 100,000 yuan ($16,010) per year.

Food Safety Stressed

The State Council has issued a guideline to boost food safety, a government statement said on May 27.

More measures will be taken to deal with land and water pollution and those who are using banned pesticides and veterinary drugs will be punished.

The quality of baby formulas will be strictly monitored and a campaign will be made to crack down on any illegal use of food additives.

More efforts will be made to improve food safety in meat products and punish those who illegally purchase, process or sell sick or dead animals.

Draft amendments to the Food Safety Law released in October last year said China will triple the fines for severe food safety violations, and those jailed for such crimes will be banned forever from the food industry.

Salary Survey

Employees in China's foreign-invested companies earned more than any other group last year, according to new survey results released May 27.

The National Bureau of Statistics (NBS) said in a statement on its website that foreign companies paid an average annual salary of 61,694 yuan ($10,001) to their employees in 2013, topping all other types of companies.

State-owned companies paid the second highest at 56,728 yuan ($9,082), while companies with investment from Hong Kong, Macao and Taiwan paid 49,683 yuan ($7,954) to employees, the statement showed.

The NBS tracked 870,000 companies in 16 sectors for the survey. The average salary of all tracked companies was 45,676 yuan ($7,313).

Water Facility Loan

The Asian Development Bank (ADB) will help improve water access and quality in China in a $200-million deal signed here on May 27 with private water supplier China Water Affairs Group Ltd. (CWA).

Under the project, for which no time frame was specified, CWA will extend urban water pipeline networks into semi-urban and rural communities to provide household connections to tap water 24 hours a day, seven days a week. Customers will enjoy better water quality and more reliable access.

CWA will also strengthen existing water facilities to prevent leakage and secondary contamination during distribution.

According to the deal, the ADB's support will comprise a direct A-loan of $100 million, denominated in U.S. dollars and the yuan. The yuan portion will use funds raised via the bank's Panda bonds as well as Dim Sum bonds.

The ADB will also arrange a $100-million B-loan, under which it acts as the lender of record for commercial banks.