Official: Gov't boosts small, medium biz ( 2004-01-01 00:08) (China Daily)
China is to make more efforts 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 per cent of the
total exports, and 43 per cent of the country's total tax revenue.
They also provide 75 per cent 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 favourable 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
co-operation 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.
