Guangdong boosts economic measures

Guangdong has released a series of measures to stabilize the job market and encourage entrepreneurs who have started their own businesses. These include loans worth up to 5 million yuan, extensions of repayment plans, widening of unemployment insurance, and issuance of special subsidies. Highlights are as follows: 

Encourage entrepreneurship:

  • For qualified labor-intensive and tech-focused micro enterprises, a guaranteed loan of up to 5 million yuan and up to 3 years will be granted, with a discount of 50% of the basic interest rate of the loan.
  • Those with personal start-up guaranteed loans can apply to their bank for an extension on their repayment plan of up to one year, provided they can show how the coronavirus has impacted their business. 
  • Anyone who has been unable to meet monthly repayments during the crisis can have a “grace period” of up to 30 days after the epidemic situation has subsided.

Support employment:

  • The basic employment subsidy and social insurance subsidy for small and micro enterprises will be extended to college graduates for at least two years after graduation.
  • The subsidy for job-hunting and entrepreneurship will be raised to 3,000 yuan per person starting from 2021. 
  • For employees treated or quarantined by medical observation due to the epidemic, salaries shall be subsidized to the enterprise at a rate not exceeding 50% of the basic endowment insurance payment of the employee.

Supporting the unemployed:

  • For the unemployed facing financial difficulty who do not meet the normal requirements for receiving unemployment insurance benefits, a temporary living allowance of 5000 yuan per person shall be given. 
  • Urban residents enjoying the minimum living security reemployment subsidy can retain their six-month minimum security treatment after reemployment, if the per capita monthly income of the family reaches or exceeds the local minimum living standard. 

Recruitment:

  • Expand the recruitment of college graduates to join the army.
  • Develop 1000 public employment and entrepreneurship service posts, absorb the employment of university graduates within 2 years after graduation, and give subsidies according to the wage level of local staff in institutions with the same conditions for up to 2 years.

Stimulate industries:

  • Push cities to issue subsidies for scrapping and updating old cars, and encourage Guangzhou and Shenzhen to further relax their policies on license lotteries.
  • Speed up the issuance and use of special bonds from local governments, and implement projects such as the transformation of old urban communities, shantytowns, and dilapidated houses in rural areas.
  • Expanding the scale of export insurance and reduce the rate of export credit insurance.

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