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    China announces fund for small businesses

    BEIJING (AP) — China's government has announced a $2.5 billion fund to finance new small businesses and promised tax breaks and more bank lending to help struggling entrepreneurs.

    Wednesday's announcement followed repeated government pledges to help entrepreneurs who create most of China's new wealth and jobs but have been squeezed by slumping exports and curbs on bank lending. Thousands of small companies have been driven out of business, raising the threat of unrest among jobless workers.

    A Cabinet statement said small companies were essential to helping China overcome global economic malaise and ensuring stable, fast growth.

     

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