Funds created for small businesses in China

The government of China has announced a US$2.5 billion fund to finance new small businesses.

In addition they have promised tax breaks and more bank lending for struggling entrepreneurs.

Slumping exports and curbs on bank lending have had a significant negative impact on the entrepreneurs that create most of China’s new wealth and jobs.

Thousands of small companies have gone out of business which has created much unrest among the people out of work.

It is understood that small companies are essential to helping China overcome global economic malaise and ensuring stable, fast growth.


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