chapter I general provisions article 1 this law is formulated in order to improve the business environment of small and medium-sized enterprises, promote their healthy development, expand employment in urban and rural areas, and give full play to their important role in national economic and social development. Article 2 The term "small and medium-sized enterprises" as mentioned in this Law refers to enterprises of various ownership and forms established in the People's Republic of China according to law, which are conducive to meeting social needs, increasing employment, and conforming to the national industrial policy, and their production and operation scale belongs to small and medium-sized enterprises.

the division standard of small and medium-sized enterprises is formulated by the department in charge of enterprise work in the State Council according to the number of employees, sales volume, total assets and other indicators, combined with the characteristics of the industry, and submitted to the State Council for approval. Article 3 The state implements the policy of actively supporting, strengthening guidance, improving services, standardizing according to law and safeguarding rights and interests for small and medium-sized enterprises, so as to create a favorable environment for their establishment and development. Article 4 the State Council is responsible for formulating policies for small and medium-sized enterprises and making overall plans for the development of small and medium-sized enterprises throughout the country.

The departments in charge of enterprise work in the State Council organize the implementation of national policies and plans for small and medium-sized enterprises, and provide comprehensive coordination, guidance and services for the work of small and medium-sized enterprises nationwide.

relevant departments of the State Council provide guidance and services to SMEs within their respective responsibilities according to the national SME policies and overall planning.

local people's governments at or above the county level and their subordinate departments in charge of enterprise work and other relevant departments provide guidance and services to small and medium-sized enterprises within their respective administrative areas within their respective functions and duties. Article 5 The department in charge of enterprise work in the State Council shall, in accordance with the national industrial policy and in combination with the characteristics and development status of small and medium-sized enterprises, determine the key support points and guide and encourage the development of small and medium-sized enterprises by formulating the industrial guidance catalogue for the development of small and medium-sized enterprises. Article 6 The State protects the legitimate investments of small and medium-sized enterprises and their investors, as well as the legitimate income obtained from the investments. No unit or individual may infringe on the property of small and medium-sized enterprises and their legitimate income.

no unit may charge or impose fines on small and medium-sized enterprises in violation of laws and regulations, and may not apportion property to small and medium-sized enterprises. Small and medium-sized enterprises have the right to refuse and have the right to report and accuse violations of the above provisions. Article 7 The administrative department shall safeguard the legitimate rights and interests of small and medium-sized enterprises, protect their rights to participate in fair competition and fair trade according to law, and shall not discriminate or attach unequal trading conditions. Article 8 Small and medium-sized enterprises must abide by the national laws and regulations on labor safety, occupational health, social security, resources and environmental protection, quality, finance and taxation, finance and other aspects, operate and manage according to law, and shall not infringe upon the legitimate rights and interests of employees or harm the interests of the public. Ninth small and medium-sized enterprises should abide by professional ethics, abide by the principle of good faith, and strive to improve their business level and enhance their self-development ability. Chapter II Financial Support Article 1 The central budget shall set up the subject of small and medium-sized enterprises and arrange special funds to support the development of small and medium-sized enterprises.

local people's governments should provide financial support for small and medium-sized enterprises according to actual conditions. Article 11 The state special fund for supporting the development of small and medium-sized enterprises shall be used to promote the construction of the service system for small and medium-sized enterprises, carry out the work of supporting small and medium-sized enterprises, supplement the development fund for small and medium-sized enterprises and other matters supporting the development of small and medium-sized enterprises. Article 12 The State establishes a fund for the development of small and medium-sized enterprises. The SME development fund consists of the following funds:

(1) special funds arranged by the central budget to support the development of SMEs;

(2) Fund income;

(3) donation;

(4) other funds.

the state encourages donations to the SME development fund through tax policies. Article 13 the national SME development fund shall be used for the following matters to support SMEs:

(1) entrepreneurship counseling and services;

(2) support the establishment of credit guarantee system for small and medium-sized enterprises;

(3) supporting technological innovation;

(4) encourage professional development and cooperation with large enterprises;

(5) support the service institutions of small and medium-sized enterprises to carry out personnel training, information consultation and other work;

(6) support small and medium-sized enterprises to explore the international market;

(7) Support small and medium-sized enterprises to implement cleaner production;

(8) Other matters.

Measures for the establishment and use of SME development funds shall be formulated separately by the State Council. Article 14 The People's Bank of China shall strengthen the guidance of credit policies and improve the financing environment for small and medium-sized enterprises.

The People's Bank of China should strengthen its support for small and medium-sized financial institutions, encourage commercial banks to adjust their credit structure and increase their credit support for small and medium-sized enterprises. Fifteenth financial institutions should provide financial support to small and medium-sized enterprises, strive to improve financial services, change service style, enhance service awareness and improve service quality.

all commercial banks and credit cooperatives should improve credit management, expand service areas, develop financial products suitable for the development of small and medium-sized enterprises, adjust credit structure, and provide credit, settlement, financial consultation, investment management and other services for small and medium-sized enterprises.

national policy financial institutions should provide financial services to small and medium-sized enterprises in various forms within their business scope. Article 16 The State shall take measures to broaden the direct financing channels for small and medium-sized enterprises, and actively guide them to create conditions for direct financing through various means permitted by laws and administrative regulations. Article 17 The state encourages all kinds of venture capital institutions established according to law to increase investment in small and medium-sized enterprises through tax policies.