China introduces loan interest subsidies to boost MSMEs development

China has rolled out a loan interest subsidy policy for micro, small and medium-sized enterprises (MSMEs) from Jan 1 this year, according to official documents jointly released by China's Ministry of Finance (MOF) and several other departments on Tuesday.

According to the policy, China will provide targeted support to private MSMEs across various sectors. It will focus on key industrial chains and their upstream and downstream sectors, as well as producer services, processing and emerging fields such as AI.

"The loan interest subsidy policy is designed specifically for certain key industries, making it structurally oriented. For instance, we are transitioning from mid- and low-end manufacturing to high-end manufacturing, and the digital and intelligent transformation of society is urgent. Therefore, it is crucial to implement targeted and structured policies at this moment to facilitate this transformation. By providing interest subsidies to some industries prioritized by our country, we can foster their development, reduce financing costs for these enterprises, and enhance investment in related sectors," said He Ping, vice dean of the School of Economics and Management at Tsinghua University.

Interest subsidies will be set at 1.5 percentage points per year, with a maximum subsidy period of two years. The loan amount eligible for subsidies will be capped at 50 million yuan per borrower, with the maximum interest subsidy per borrower set at 1.5 million yuan.

The policy will initially be implemented for one year, with the possibility of extension based on actual conditions.

China introduces loan interest subsidies to boost MSMEs development

European Commission President Ursula von der Leyen said Tuesday that the European Union stands in full solidarity with Greenland and the Kingdom of Denmark, stressing that their sovereignty and territorial integrity are non-negotiable.

In a special address at the World Economic Forum annual meeting in Davos, von der Leyen said the EU is preparing an Arctic security support package built on five pillars, including stepped-up investment in Greenland's economy and infrastructure and increased defense spending on European icebreaker capability.

Full solidarity with Greenland and the Kingdom of Denmark is the first principle, and the sovereignty and integrity of their territory is non-negotiable, she noted.

Von der Leyen said the EU also plans to channel a major European investment push into Greenland to support the local economy and infrastructure, while using the bloc's defense spending increase to bolster European icebreaker capability and other equipment seen as vital to Arctic security.

She said Europe must adjust to a "new security architecture and realities" and is preparing its own security strategy, including an upgraded Arctic strategy, to be published later this year.

"And at the heart of this will be the fundamental principle: It is for sovereign people to decide their own future," she said.

Sovereignty, integrity of Greenland, Denmark's territory "non-negotiable": Ursula von der Leyen