Editor's Note: In a recent interview with the ThePaper.cn, Liu Qiao, dean of Peking University's Guanghua School of Management, talked about how the authorities should improve the operating condition of a vast number of micro, small and medium-sized enterprises in the context of the insufficiency of overall effective demands, and boost consumption. Excerpts follow:

A questionnaire survey lasting eight quarters conducted by Professor Zhang Xiaobo of Peking University's Guanghua School of Management and covering more than 10,000 small and micro-sized enterprise operators found that the biggest difficulty facing MSMEs is the lack of real market demand as well as the uncertainty caused by the pandemic. It is true that the contribution of MSMEs to GDP is not high, but they are very important for social stability and employment. From January to May, the total retail sales of consumer goods fell sharply year-on-year, because of insufficient effective demand.

The measures the country has taken to stabilize growth are working and the economy is showing signs of recovery. However, there are structural differences in the benefits and effects of these policies. The coverage of the existing policies is not targeted enough for MSMEs. Most of them are aimed at lowering enterprises' payment of social security premiums and reducing their operating costs, and only benefit enterprises above the designated size.

Another big factor is policy uncertainties, specifically concerning pandemic prevention and control. The shutdown of operations due to the pandemic has had a huge impact on MSME operators. People's relatively feeble consumption willingness and consumer confidence have compounded the problem.

MSMEs contribute largely to job opportunities in the country, and the difficulties they face need to be faced squarely. The authorities can consider giving out consumption coupons on a large scale. In the past two years, many local governments have experimented by distributing consumption vouchers, boosting the consumption of social retail goods.

It is true that investment and infrastructure can boost GDP growth, but that does not inevitably resolve the country's structural problems. This requires the authorities to revise the macro policy thinking and not be excessively obsessed with GDP growth. If the problems of MSME operators are solved, the country's employment and increasingly acute structural or social problems can be resolved at the roots.