China is to make more effort to promote the development of small
and medium-sized enterprises (SMEs), a top government official
said.
"The Chinese Government will continue to perfect relevant laws
and regulations and improve services for SMEs, to support and boost
the healthy development of SMEs'," said Ma Kai, director of the
National Development and Reform Commission.
The absence of a sound legal and policy-making framework to
protect and support SMEs made it difficult for the sector to grow
in China.
Over the past two decades, SMEs have grown into an important
force behind China's dynamic economy.
They make up half of China's gross domestic product (GDP), 60
percent of the total exports, and 43 percent of the country's total
tax revenue.
They also provide 75 percent of the total jobs in urban areas,
helping the country relieve the pressure in the job market.
"The commission is working on a series of measures concerning
government procurement, venture capitals, establishment of new
ventures, technology development and enterprise credit system, to
further improve the external environment for SMEs and private
businesses in China," Ma said.
Meanwhile, the commission is to publish a guiding directory,
listing key industries, which SMEs are encouraged to engage in.
The government will also help create a favorable environment for
new ventures and create a supportive mechanism for SMEs, helping
them cut initial costs, Ma said.
He said at a seminar held earlier this week that China has
improved the policy environment for SMEs since the SME Promotion
Law was put into effect on January 1, 2003.
During the past year, the central government allocated special
funds for the development of SMEs, offering management training for
more than 20,000 owners, setting up a credit rating system for more
than 4,000 SMEs in five major cities including Beijing, and helping
nearly 10,000 SMEs in six major cities such as Shanghai and
Chongqing start business.
In addition, the credit guarantee system for SMEs has improved.
According to incomplete statistics, by June 30, 2003, China had
established nearly 1,000 credit guarantee organizations for SMEs,
raising 28.7 billion yuan (US$3.4 billion) and providing credit
guarantees for some 50,000 SMEs, with a total guarantee value of
nearly 120 billion yuan (US$14.5 billion).
As a result of the improving guarantee system, the SMEs which
received credit guarantees increased employment by 580,000 and
sales revenue by more than 110 billion yuan (US$13 billion).
To broaden SMEs' financing channels, the commission has been
working in cooperation with commercial banks, such as the State
Development Bank and the Guangdong Development Bank, during the
past year, to provide loans for SMEs in some cities.
(China Daily January 2, 2004)
?