Govt to expand its support for job creation, new businesses

China will step up policy support for employment and business startups, create more job opportunities, help market entities emerge and grow, and foster new growth drivers, the State Council Executive Meeting chaired by Premier Li Keqiang decided on Wednesday.

The meeting underscored the fundamental importance of employment to people's well-being, adding that the creation of new businesses can increase the number of market entities and boost employment.

Stable growth is mainly about stable job creation. Local governments must earnestly fulfill their due responsibilities and step up support for employment and business startups, said a statement issued after the meeting.

"The current employment situation is generally stable, but there are concerns as well. Local governments must earnestly fulfill their due responsibilities and take some special measures," Li said.

The requirement will be relaxed under which local governments can subsidize enterprises with unemployment insurance funds to retrain workers.

Companies will be entitled to job creation subsidies in hiring college graduates unable to find jobs two years after graduation and young people registered as unemployed.

Unemployment insurance benefits will be issued to the jobless in a timely manner. Skills training for migrant workers will be enhanced to help them remain in employment.

The platform economy will be supported in keeping employment stable. Social insurance subsidies will be provided to people engaged in platform-based flexible employment should they face difficulties, as well as to college graduates yet to find jobs two years after graduation. Financial institutions will be guided to extend special loan support to key platform companies.

"Unemployment insurance and other support policies must be fully delivered to benefit all those eligible. The financial sector should support market entities in keeping employment stable and creating jobs by starting businesses," Li said.

The repayment of guaranteed startup loans could be extended for one year if the borrower is facing difficulties due to the impact of COVID-19. Banks will be guided toward offering more credit loans and loan renewals for micro, small and medium-sized enterprises.

Insurance funds, among others, will be encouraged to invest in venture capital funds in accordance with the law. The lockup period for shareholders in venture capital firms will be fine-tuned, to facilitate the recovery of investors' funds for reinvestment.

Government-financed business incubation bases will provide venues for startups free of charge to the best of their ability.

"We have sufficient reserves of pension and unemployment insurance funds, and have yet to tap into our strategic reserves. There is no problem with meeting people's basic needs," Li said.