MNI China Press Digest May 22: E-commerce, Economy, SMEs

Highlights from Chinese press reports on Thursday:

• Chinese e-commerce companies expanding overseas face challenges as the EU and Japan signal plans to raise tariffs on low-value parcels, following the U.S.’s removal of its tax-free policy in early May. Since 2018, China’s cross-border e-commerce platforms’ small-value exports to the U.S. increased from USD5.3 billion to USD66 billion—fuelling a surge in parcel volumes from 138 million to 1.36 billion. (Source: Beijing Business Today)
• Policymakers should emphasise supporting the real-estate market above boosting consumption to stabilise China’s domestic economy this year, said Liu Yuanchun, president at the Shanghai University of Finance and Economics. The government's strategy to expand domestic demand must go beyond short-term stimulus measures and focus on deeper structural adjustments, he added. To tackle persistently low prices authorities must curb excessive market competition and improve the overall regulatory environment, he said. (Source: Securities Daily)
• The government will support SME firms in raising equity financing, accessing venture capital and enhancing regional stock exchanges for small business fundraising, according to a policy document released by eight government departments, including the National Financial Regulatory Administration. SMEs are encouraged to first list on the National Equities Exchange and Quotations board before transitioning to the Beijing Stock Exchange once they achieve growth. Authorities aim to increase social capital investment with innovative small businesses, the document said. (Source: Yicai)