Page 7 - REPORT ON THE IMPLEMENTATION OF THE 2020 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2021 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT

established mechanisms for ensuring that the additional two trillion yuan of government
bonds went directly to prefecture and county governments, and provincial-level governments
channeled more financial resources to lower-level governments. These combined measures
supported prefecture and county governments in implementing policies to benefit both
enterprises and the people.
We introduced supportive monetary measures with a value of over nine trillion yuan by
means such as required reserve ratio reductions, medium-term lending facilities, open market
operations, re-lending and rediscounts, and by developing new monetary policy instruments
that directly serve the real economy. We also implemented the loan prime rate (LPR)
mechanism to reduce the cost of financing. Large commercial banks increased inclusive loans
to micro and small enterprises (MSEs) by more than 50%. Over the year, the financial sector
saved enterprises 1.5 trillion yuan via measures to boost the real economy. Rental payments for
certain MSEs and self-employed individuals in the service sector were reduced, waived, or
postponed for a certain period of time.
Box 2: Progress in Implementing Epidemic Relief Policies for Enterprises
 While implementing institutional policies such as lowering VAT rates and the
share of employees’ basic old-age insurance paid by enterprises, we also rolled
out 28 tax and fee reduction policies in seven batches, promptly introduced
time-limited measures, including exempting micro, small, and medium
Tax and Fee enterprises from social insurance premiums and reducing or exempting VAT on
Cuts small-scale taxpayers and for certain sectors, and postponed payment of
corporate income taxes by MSEs and self-employed individuals, in an effort to
overcome the impact of the epidemic. These policies and measures played a
crucial role in sustaining over 100 million market entities, in boosting market
dynamism, and in facilitating growth in corporate profits.
 We created two monetary policy instruments which proved able to directly serve
the real economy: an instrument to allow MSEs to postpone repayments on
inclusive loans, and the credit loan support program.
 In 2020, the banking sector deferred repayments of principal and interest for 7.3
trillion yuan worth of loans, and granted 3.9 trillion yuan of inclusive credit
loans to MSEs.
Lowering
Financing Costs  More loans were granted to a greater number of MSEs at lower costs. By the
end of 2020, the balance of inclusive loans for MSEs was 15.1 trillion yuan, an
increase of 30.3%, which benefited 32.28 million businesses. The interest rate on
newly-issued inclusive loans for MSEs was 5.08% in December 2020, 0.8
percentage points lower compared to the same period of the previous year.
 By the end of 2020, outstanding medium- and long-term loans to manufacturers
totaled approximately 5.26 trillion yuan, an increase of 35.2%.
 We implemented 12 measures in six different categories to develop the logistics
industry to address the impact of Covid-19.
 The State Council forwarded the Guidelines on Further Reducing Logistics
Costs compiled by the National Development and Reform Commission and the
Ministry of Transport, and rolled out 24 policies and measures to reduce
Lowering
Logistics Costs institutional costs, the cost of factors of production, fees and taxes, information
costs, multimodal transportation costs, and overall costs.
 We formulated the Guidelines on Fostering an Enabling Environment to
Promote the Distribution of Fresh Agricultural Products, and introduced 12
policies and measures relating to operating costs, financial support, land use and
office use, the business environment, and development of larger and stronger

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