China Drafts Law to Boost SMEs

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Last updated at: (Beijing Time) Tuesday, February 19, 2002

China Drafts Law to Boost SMEs

China is considering to give incremental financial support to the nation's 9 million small and medium-sized enterprises (SMEs), a senior legislative official revealed. A draft law was submitted to the Standing Committee of the National People's Congress (NPC) for preliminary reading in December.

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Law drafted to support SMEs

Tuesday's China Daily said that a draft law was submitted to the Standing Committee of the National People's Congress (NPC) -- China's top legislature -- for preliminary reading in December.

The law on the promotion of SMEs demands the central budget to allocate special funds to aid SMEs in their pursuit for credit guarantee.

SMEs indispensable for national economy

SMEs, accounting for 95 percent of all Chinese enterprises, have played an indispensable role in invigorating the national economy and promoting market competition, increasing job opportunities and pushing forward technical innovation, the English-language newspaper quoted Zeng Xianlin, vice-director of the NPC Financial and Economic Committee, as saying.

Special funds help SMEs overcome difficulties

Zeng said that SMEs have faced more difficulties than large enterprises in receiving funding, obtaining loans, raising technological levels, attracting qualified professional personnel and accessing information.

The special funds from the central budget are aimed to offer guidance and services for SMEs to overcome the difficulties, Zeng said.

The committee disclosed that the funds will offer long-term andstable monetary support for the development of these enterprises.

China Moves to Facilitate Financing For SMEs

Lu Shuanghui, chairman of the Shenzhen-based Huida Business Development Co. Ltd., is badly in need of 20 million yuan (some 2.4 million U.S. dollars) in funds to produce a bio-tech instrument, a "marketable product" his company developed.

"We have been making applications to several banks for the loan for a couple of months, but have got no money from them," the small high-tech firm executive said Wednesday at the on-going APEC Small and Medium-sized Enterprises Bushiness Forum in Shanghai. Full Story

More SMEs to Flood Into China After WTO

Chairman of the US Chamber of Commerce Steve Van Andel has expressed belief that more US-based small and medium-sized enterprises (SMEs) will invest in China after the country's accession to the World Trade Organization (WTO). Full Story

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