MNI China Press Digest Dec 23: SMEs, US Sanction, Hidden Debt

The following lists highlights from Chinese press reports on Wednesday:

China will extend policies offering loan payment deferrals to small private businesses into Q1 next year and continue credit support, the State Council said in a statement following an executive meeting. Banks and SME borrowers should negotiate to extend payments beyond Q1, the statement said. Qualified local banks lending to SMEs will continue to receive government funding of up to 40% of the loan principal, the government said.

China will retaliate in response to the U.S. adding 58 Chinese firms to its "Military End User" list, the Ministry of Commerce said late on Tuesday. Companies included in the MEU list, many in the aviation sector, will be blocked from buying U.S. technology, MNI noted. China urges the U.S. to stop unilateral and bullying practices and give fair treatment to companies from all countries, the ministry said.

China is banning local governments from raising off-balance sheet debt in the form of corporate debt, or through illegal financing with financial institutions, wrote Minister of Finance Liu Kun in the People's Daily. China will advance its debt-ratio based local government risk assessment systems and solvency tests to strengthen risk prevention, Liu wrote. China will improve the direct tax system centered on income and property taxes, and increase their proportion in total tax revenue, wrote Liu.