Businesses that are just starting out usually face difficulties such as first-round financing and operation costs. Now, China is rolling out a special plan that will encourage entrepreneurs to kickstart a startup. CGTN's Zhao Yunfei explains.

New policies are aiming to save small enterprises in China money. Under these policies, taxes will be reduced, and financial institutions will be able to provide more products and services to startups.

WANG ZHAOXING VICE CHAIRMAN, CHINA BANKING REGULATORY COMMISSION "Financing small and micro enterprises is hard. In fact, it is a problem all over the world. But we need to do something about it. We should make great efforts to effectively solve the problem. Reducing the threshold of loans to those micro firms will encourage banks to lend money to them."

Wang says more efforts will be made to accelerate products and services that support startups, like lines of credit.

China has also taken some measures to reduce taxes on micro firms. The cap for businesses to receive a halved income tax rate, has been increased to one million yuan. The measures are expected to reduce the corporate tax burden by over 60 billion yuan, or 9.5 billion U.S. dollars.

CHENG LIHUA VICE MINISTER, CHINESE MINISTRY OF FINANCE "We carried out seven preferential tax policies based on two aspects. The first is to promote employment growth, because employment determines living quality. The second is to encourage scientific and technological innovation, as they are the driving forces of development."

The move follows a 400 billion yuan tax cut package which was decided at a State Council executive meeting in March.

The reform will boost the development of new industries and business models.

ZHAO YUNFEI BEIJING "In his Work Report at the Two Sessions meetings, Premier Li Keqiang said the country would cut up to 800 billion yuan in taxes on businesses and individuals in 2018. In the few months since, China has rolled out more details of these plans. But more is likely to come as the public is still wondering when the other 400-billion-yuan tax cut will come. Zhao Yunfei, CGTN, Beijing.