Print This Page Email This Page
Chinese SMEs Warned of Hard Times Ahead

China Association of Small and Medium Enterprises president Li Zibin has called for greater government assistance in a warning to members that tough economic circumstances will begin to bite this month.

"The global financial crisis is set to affect the real world economy, including the Chinese economy, and small and medium-sized enterprises (SMEs) will bear the brunt," he said.

Li urged the government and SMEs to work together to deal with difficulties. "Small and medium-sized enterprises are playing an increasingly important role in creating more jobs and developing innovations," he said.

China's registered SMEs exceeded 4.3 million and contributed to almost 60 percent of GDP, 50 percent of tax revenues, 68 percent of exports and 75 percent of new jobs every year, he said.

SMEs, more than 95 percent of them privately owned, also made 66 percent of the country's patent applications and developed about 82 percent of its new products.

Since last year, many SMEs had faced operating pressures, including a credit squeeze due to stringent fiscal and monetary policies and rising export costs as the yuan continued to appreciate.

These pressures were continuing to build and the situation faced by many SMEs was even grimmer, Li said.

The government had come up with a series of measures to support SMEs, including the raising of export tax rebates, he said.

(Xinhua News Agency October 28, 2008)

Related Stories
- SMEs Outlook Brisk Despite Challenging Times
- Forum to Help Chinese SMEs
- SMEs Feel Squeeze of Credit Crunch

Print This Page Email This Page
The 6th National Farmers' Games
China to Support Labor-intensive Businesses to Create Jobs
1st Foreign-funded Crop Research Center Opens in China
Shanghai Breast Cancer Rates Highest in China
Sichuan to Absorb 9.4 Bln Yuan to Save Quake-threatened Qiang Culture
China to Invest 2 Tln Yuan in Rail Construction

Product Directory
China Search
Country Search
Hot Buys