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World Giants to Fuel Rise of SMEs
The growing presence of international companies in China is spurring the rapid development of small and medium enterprises (SMEs), according to senior think-tank officials.

"One international company will drive at least 3,000 SMEs to come into being to play supportive roles for the giant company," said Li Deshui, vice-director of the Research Office under the State Council.

Li said over 400 of the world's top 500 giant companies have entered China, and their existence is likely to spark huge numbers of SMEs.

"However, many Chinese people are used to being employed and not brave enough to become bosses," said Li.

The central government should continuously step up efforts encouraging its people to create their own businesses, said Li at Sunday's China SME Business Forum 2001 hosted by the China Centre for Business Cooperation and Coordination under the State Economic and Trade Commission.

"New SMEs should focus their energy on the high-tech industry and service trades," Li told over 500 officials, experts and entrepreneurs attending the three-day forum that ends on December 18.

"They should no longer be involved in the low value-added processing industry," said Li.

In China, the lion's share of SMEs are owned by the non-State sector, which has played a vital role in guaranteeing the rapid, healthy and long-term development of China's economy since the reform and opening-up policy was introduced, said China's top private business leader Jing Shuping at another meeting on Saturday.

For example, the contribution rate to gross domestic product by the non-State economy topped 43 percent, compared with less than 1 percent a decade ago, noted Jing, chairman of the All-China Federation of Industry and Commerce (ACFIC) when opening the fifth session of the Eighth ACFIC Executive Committee.

(China Daily December 17, 2001)

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