China’s small units seek government helpOctober 28th, 2008 - 3:40 pm ICT by IANS
Beijing, Oct 28 (Xinhua) China’s small and medium enterprises (SMEs) have called for greater government assistance to help them tide over the current financial crisis and expressed fears that the credit crunch would hurt them the most.”The global financial crisis is set to affect the world economy, including the Chinese economy, and small and medium-size enterprises will bear the brunt,” chief of the association of the SMEs, Li Zibin said.
He urged the government and the sector to work together to face the challenge. “Small and medium-size enterprises are playing an increasingly important role in creating more jobs and making innovations,” he said.
China’s registered SMEs number more than 4.3 million, make up almost 60 percent of its gross domestic product (GDP), account for 50 percent of tax revenues, 68 percent of exports and create 75 percent of new jobs every year, Li pointed out.
Since last year, many SMEs have faced operating pressures, including a credit squeeze due to stringent fiscal and monetary policies and rising export costs as the yuan continued to appreciate.
More than 95 percent of these units are privately owned.
Tags: chinese economy, credit crunch, credit squeeze, export costs, fiscal and monetary policies, global financial crisis, government assistance, medium size enterprises, small and medium enterprises, world economy