China to allow more entities to defer social insurance payments

In this undated file photo, employees put finishing touches on electronic parts at an industrial park for small and medium-sized enterprises in Qira county, the Xinjiang Uygur autonomous region, in November. (DING LEI / XINHUA)

BEIJING – China will allow more market entities – particularly small businesses – to defer payments of social insurance premiums to ease COVID-19 strains, according to a government circular.

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From this month, provincial-level regions will be granted leeway to allow all local individually owned businesses, public institutions, social organizations, and micro, small and medium-sized firms affected by COVID-19 to defer these payments, the circular said.

The document was jointly released by the Ministry of Human Resources and Social Security, the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration.

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China expanded the policy's coverage from five sectors to 17 in late May.