Chinese official calls for restructuring of SMEs due to rising production costs
Quan Zhezhu, Party Secretary of the All-China Federation of Industry & Commerce, said at a forum held by Peking University on Friday, the time when SMEs enjoy low costs of labor and raw materials had gone. Rising production costs has become an irreversible trend for SMEs.
Quan said though the Chinese government has introduced a lot of favorable policies to support SMEs, these enterprises still face grave challenges, most significantly rising production costs.
Due to inflationary pressure, the cost of many raw materials had increased, and the cost of labor and land had also risen. Also, SMEs face difficulties in getting loans or government subsidies, said Quan.
China has over 10 million SMEs, accounting for 99 percent of all enterprises. SMEs employ roughly 80 percent of the work force in urban areas, according to official statistics.
Quan suggested the government assist SMEs in their restructuring by supporting technological innovation and setting up service agencies to provide help to SMEs.
According to figures released by the Ministry of Industry and Information Technology (MIIT), industrial value-added output of Chinese SMEs grew 16.9 percent year on year in the first quarter of 2011, 2.5 percentage points higher than the overall industrial value-added output level.
However, the number of SMEs reporting losses rose 0.3 percentage points year on year to reach 15.8 percent for the first two months of the year, with total losses up 22.3 percent year on year, according to MIIT figures.
The Friday forum on the development of China's private enterprises, registered 2,000 participants from government, research institutes and the business sector.
- Kunming awarded for best international image2010-10-22
- Chinese president holds talks with Myanmar's top leader on deepening ties2010-09-08
- Chinese, Singaporean presidents vow to bolster ties2010-08-18
- Chinese vice premier urges balanced trade2011-04-18
- Chinese stocks close higher on tourism, financial sectors2011-04-14
- Chinese firm opens technology training center in Indonesian college2011-04-12
- Chinese gov't boosts the bond markets2011-04-11
- Chinese M&A to focus on domestic consolidation2011-03-30
- China’s ZTE successfully bid for Malaysia wireless network2011-03-19
- Entrepreneurs of Chinese province, Myanmar hold business meeting in Yangon2011-03-15
- Chinese mobile phones will be able to use in Myanmar2011-02-11
- Non-governmental business delegation of the Economic Corridor of China, Laos and Thailand organized investigation trip to Cambodia (schedule 2)2011-01-28
- Korean Air adds more Seoul-Kunming flights2011-01-15
- Chinese banks' November forex surplus hits 45.3 bln USD2010-12-24
- Chinese premier, Pakistani president vow to boost ties2010-12-20
- Chinese, Pakistani PMs hold talks to cement strategic cooperative partnership2010-12-18
- China’s renewable energy firms encouraged to invest in U.S. market2010-12-07
- China stocks close higher Wednesday, led by consumer goods producers2010-11-24
- Chinese president puts forward growth proposal at APEC summit2010-11-13
- China, APEC hand in hand towards common development2010-11-11
- Chinese premier calls for deepening East Asian co-op2010-10-30
- Chinese premier meets with Vietnamese Communist Party chief2010-10-30
- Chinese, Indian PMs meet on bilateral relations2010-10-29
- Chinese premier meets with Singaporean counterpart in Hanoi2010-10-29
- Chinese mainland bank sets up 1st representative office in Taiwan2010-09-25
- International fair to tap new energy2010-09-21
- Chinese gov to improve food safety systems2010-09-03
- Chinese Consumer Price Index (CPI) by Region (July 2010)2010-09-03
- Chinese leaders congratulate Vietnam on 65th National Day2010-09-02
- Chinese, Singaporean trade unions vow closer ties2010-09-01
- Chinese tea being under weather threat -- and milk and sugar2010-08-24
- Chinese products moving up the value chain2010-08-23
- Chinese CPI may peak in Aug: economist2010-08-22
- Chinese fifth jade species:Huanglong jade2010-08-17
- Chinese premier urges development of northeastern China2010-08-17
- Chinese fares gain 2.11% Monday, led by coal producers2010-08-16
- Chinese shares close lower midday Thursday2010-08-05
- In record, 54 Chinese firms hit Global 5002010-07-10
- Chinese banks lent 560b yuan in June2010-07-07
- Chinese Tianjin industrial zone wooes Russian investors2010-06-23
- Chinese vice president concludes Bangladesh tour, starts Laos trip2010-06-19
- Chinese vice premier inspects SW China's Yunnan Province2010-06-04
- Chinese production bases rates highest in Asia2010-06-04
- Chinese electric power companies increases investment in ASEAN2007-10-10