In addition, the total amount of tax cuts and refunds will reach 2.5 trillion yuan, more than twice the 1.1 trillion yuan achieved in 2021.

The Central Economic Work Conference in December noted that the Chinese economy is facing threefold pressure of contracting demand, supply slump and weakening market expectations. To aid market players, particularly those in industrial and services sectors, a raft of policies has already been rolled out to help businesses in these two sectors.

On Feb 15, an executive meeting of the State Council, China's Cabinet, stressed the important role that the industrial economy and the services sector play in overall economic development and employment stability. Noting that the industrial economy has not fully recovered since the pandemic and is in need of policy support, the meeting called for greater support.

On Feb 18, the National Development and Reform Commission, along with several other government departments, released a raft of measures to shore up support for MSMEs in the services sector, outlining 43 policy measures to provide fiscal and logistical support for enterprises in the sector, especially those in the catering, retail and travel segments, that have been particularly hard-hit by the COVID-19 pandemic and related restrictions.

The policy list includes the extension of tax reductions and exemptions, fiscal support measures, and help with implementing COVID-19 prevention measures, among many other relief policies.

Income tax relief will be extended to companies in the industrial and services sectors. This year, MSMEs that purchase new equipment worth more than 5 million yuan with a three-year depreciation period are entitled to a one-off deduction of total purchase costs from taxable income. For those with equipment depreciation periods of four, five or 10 years, they are eligible for a 50 percent deduction.

Tax deferral policies will also be extended for MSMEs in the manufacturing sector. In addition, stronger financing support will be put in place. The People's Bank of China, the country's central bank, will provide funding to support an increase in inclusive loan offerings to micro and small businesses.

Efforts will also be made to facilitate more medium and long-term loan offerings to manufacturers in an effort to bring down overall financing costs. Economists said they believe these efforts, combined with the new moves helping the smaller business communities, should help keep China's growth on a steady track.

Yang Weimin, deputy director of the Economic Affairs Committee of the CPPCC National Committee, said on the sidelines of the two sessions that manufacturing businesses and private, small businesses are, and will continue to be, the sources generating growth this year.