BEIJING, Dec. 1 -- Amid the coupling effects of
shrinking global demand and rising operating costs, it has been a dramatic
upheaval this year for domestic small and medium-sized enterprises (SMEs) after
China started its reforms 30 years ago.
Even as the scene appears a bit scary, there is still
a ray of hope if only entrepreneurs note the writing on the wall and go all out
to cut costs before they raise the clamor for a bailout.
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Two women make beds on a production line
of the small private firm Nangang Shoemaking Factory in Foshan, Guangdong
province. (Photo Source: China Daily)
Photo
Gallery>>> |
In the first half of 2008, much before the world saw
the capital markets going topsy turvy amid the global economic slowdown, over
67,000 SMEs in China went bankrupt, while more than 10,000 labor-intensive
textile enterprises downed shutters, according to figures from the Department of
SMEs under the National Development and Reform Commission.
In October, 714 companies were closed in Dongguan in
Guangdong province, home to over 60,100 private companies and a major
manufacturing center in China.
"We will see more companies closing in the coming
months, with the figure likely to cross 1,000 after Christmas," says Dongguan
Deputy Mayor Jiang Ling.
Most of the international buyers of Chinese products
failed to get letters of credit in October leading to significant cancellations
of Christmas orders, says Frank FX. Gong, chief China economist at JPMorgan
Securities (Asia Pacific) Limited in a recent report. "Indeed, 'things suddenly
ceased' was the common comment we heard on the ground lately," he says.
But for some like Luo Chun, sales director of tin box
maker Dongguan Tinpak Co, the freeze on Christmas orders has not yet meant
closing. Luo says overseas order fell by 10 percent from June to October,
normally the peak time for Christmas orders. Full story >>>
Premier Wen calls for support of
SMEs
BEIJING, Nov. 15 (Xinhua) -- Chinese Premier Wen
Jiabao on Saturday outlined a series of proposals for local governments to
support small and medium-sized enterprises (SMEs).
Touring SMEs in the southern province of Guangdong, Wen
said SMEs would play a crucial role in promoting economic growth, increasing
fiscal revenue, providing jobs and maintaining social stability.
China to establish 3-billion-yuan fund
for troubled SMEs
BEIJING, Nov. 24 (Xinhua) -- The China
Association of Small and Medium Enterprises (CASME) has initiated a
3-billion-yuan (439.2 million U.S. dollars) venture investment fund as a step to
help the country's SMEs raise capital, the body announced in its website on
Monday.
The fund will be established by the end of this year.
Chinese official: SMEs need to attach
more importance to intellectual capital
BEIJING, Nov. 21 (Xinhua) -- Small and medium Chinese
enterprises (SMEs) should improve their management of intellectual capital
during the financial crisis, a Chinese official said here Friday.
"The majority of Chinese entrepreneurs don't realize the true lucrative potential in intellectual capital such as intellectual property, brainpower and corporate culture," Wang Liwen, secretary general of the China National Committee for Pacific Economic Cooperation Business Forum. Wang made the remarks while briefing journalists on the upcoming fourth Symposium on China-Association of Southeast Asian Nations (ASEAN) Entrepreneurs Exchanges.
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