Q: The rapid development of small- and medium-sized
enterprises has absorbed a large proportion o he country's labor
force. How has China encouraged and supported the development of
these enterprises?
A: Since China's reform and opening up, small- and medium-sized
enterprises have grown very fast and are playing an increasingly
important role in the country's social and economic development. In
fact, they have become a major force to ensure economic growth,
create employment and optimize economic structure.
According to statistics, 99 percent of Chinese enterprises are
small- and medium-sized, which at present provides jobs for 75
percent of the country's employed, produces more than 60 percent of
exports, and creates 45 percent of national tax revenue, 70 percent
of increased industrial output and more than 55 percent of the
gross domestic product.
It should be stressed that small- and medium-sized enterprises
have become fundamental to reducing employment pressure and
maintaining social stability. The absolute majority of jobs in the
country's rural areas are provided by small- and medium-sized
enterprises, especially township enterprises.
Of 150 million workers in the manufacturing industry, small- and
medium-sized enterprises employed 110 million, or 73 percent. In
recent years, a large number of workers of SOEs have been laid off
during China's adjustment of the economic structure. In the
meantime, growing surplus of rural labor continues to flood into
cities for employment. Under such circumstances, the role of small-
and medium-sized enterprises in absorbing labor forces has become
even more significant.
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In order to stimulate the development of small- and medium-sized
enterprises, the Chinese Government issued a policy paper in
February 2005 to encourage, support and guide their
development
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The specific measures include: setting up a special development
fund; studying new ways to improve management of family businesses
and small companies in terms of accounting, taxation and statistics
collection; exploring organization mechanisms suitable for family
businesses and small companies; supporting people in starting their
own business; and providing technology, information and policy
incentives to newly started small enterprises.
Concrete measures have also been taken to make it easier for
small- and medium-sized enterprises to get bank loans and to be
listed in domestic stock markets.
Engineers in the Changzhou Machine Tool
Factory overhaul a proprietary digital control machine tool.
Industrial enterprises in Jiangsu Province participate actively in
international market competition.
