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.