Government measures in key jurisdictions 5th edition - Flipbook - Page 34
China
Contributor: JunHe LLP
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
Employment
What financial
support is
the government
providing to
individuals on
employment
issues?
Che Hu | cheh@junhe.com | +86 10 8553 7662
Janet Hui | xurr@junhe.com | +86 10 8519 1280
•
In February 2020, a government policy is announced to strengthen financial
support to enterprises. The central government will subsidize the interest
payment of key enterprises engaged in epidemic containment.
•
Financial institutions are asked to refrain from arbitrary withdrawing, cutting or delaying
loans that are issued to severely affected industries, (e.g., wholesale and retail) and
enterprises that are otherwise performing well but are under temporary difficulties due
to the epidemic, and small and micro enterprises in particular.
•
For enterprises that cannot repay loans on time due to severe impact by the epidemic,
loans can be extended or renewed. Meanwhile, measures are taken to lower lending
rates and increase unsecured loans and medium and long-term loans to help
enterprises handle the impact of the epidemic.
•
In 2021, some local governments have put in place financial support for certain
industries and enterprises. For instance, Jilin Province announced measures to
increase loans for enterprises in the tourism industry and support the loan extension
for certain micro and small-sized enterprises.
The Standing Committee of the State Council on February 18, 2020 adopted national
policies to reduce the financial impact of the epidemic on employers as well as to help
stabilize employment. Among the policies are the reduction of employer social insurance
contributions and the delay of housing fund contributions. The policies have gradually been
implemented by national and local notices and policies.
On February 20, 2020, the Ministry of Human Resources and Social Security, together with
the Ministry of Finance and the State Taxation Administration announced the following.
•
From February 2020, provinces may exempt small and medium-sized enterprises for up
to five months from paying the employer portion of contributions for
pension, unemployment, and occupational injury insurance.
•
Provinces may reduce by 50% the employer contributions for pension, unemployment, and
occupational injury insurance for large enterprises for up to three months.
•
Hubei province may exempt all employers from paying the employer contributions for
pension, unemployment, and occupational injury insurance for up to five months.
•
All employers that suffer serious difficulties in production and operation due to the
outbreak may apply for deferred payment of contributions for all five types of social
insurance for up to six months. Approved employers would not be liable for late payment
fees.
Further employment policies issued relating Covid-19 epidemic.
On June 22, 2020, the Ministry of Human Resources and Social Security, together with the
Ministry of Finance and the State Taxation Administration extended the policy announced on
February 20, 2020:
34
•
Provinces may exempt small and medium-sized enterprises from paying the employer
portion of contributions for pension, unemployment, and occupational injury insurance
until the end of December 2020.
•
Provinces may reduce by 50% the employer contributions for pension, unemployment,
and occupational injury insurance for large enterprises till the end of June 2020.
Government measures in key jurisdictions
