Chinese Small and Medium Sized Enterprises SMEsDevelopment and Government Behavior

1
Chinese Small- and Medium- Sized Enterprises
(SMEs)Development and Government Behavior
2
Present Status and Development Trend

• Enterprise Number
• Total 3.026 million
• Total SMEs 99.4 (lt1000 employees each)
• Industrial SMEs 1.343 Million
• Non-Governmental Scientific SMEs 111,000

3
Present Status and Development Trend

• Trend
• Proportion declines
• state owned and collective enterprises
• Proportion increases
• private and individually run enterprises
• joint stock enterprises rapidly

4
Present Status and Development Trend

• Large-scale enterprises continue to appear
• Haier annual income exceeds RMB 30 billion
  Yuan
• Huawei and Legend
• annual income gt RMB 25 billion each.

5
SMEs Position and Role

• Numbers
• 50 of the Chinese GDP
• 60 of total Chinese export
• 43 of the total Chinese tax income
• 75 of the total township employment
• a major creator of newly increased
  employment

6
SMEs Position and Role

• Chinese regional economy promoter
• Guangdong Dongwan Computer Spare Parts
• Zhejiang Shaoxing Textile Shell Fabric

7
Laws, Regulations and Policies on the Development
of Small- and Medium- Sized Enterprises

8
Laws and Regulations and Policies

• Medium- and Small-Enterprises Promotion Law of
  PRC ,adopted on January 1, 2003
• Interim Regulations on the Adoption of Medium-
  and Small-Sized Enterprise Standards, February
  2003
• Provincial level
• related rules on the implementation of the the
  Medium- and Small-Enterprises Promotion Law of
  PRC.

9
Laws and Regulations and Policies

• Special start fund gt RMB 10 billion Yuan In 2003
• (subsidies to support credit service and
  business creation service)
• Being drafted
• Regulations on the Management of Medium- and
  Small-Sized Enterprises Fund
• Regulations on the Management of Credit
  Guarantee for Medium- and Small-Sized
  Enterprises

10
Laws and Regulations and Policies

• Main Purpose
• improve the operation environment
• promote healthy development
• increase employment opportunity, and
• give full play role of in national economic
  development.

11
Laws and Regulations and Policies

• Support to Scientific SMEs
• Resolutions on Problems Relating to the Great
  Development of Non-Governmental Technology
  Enterprises adopted in 1993
• Medium-and small-sized technology enterprise
  innovation fund set up in 1999
• Favorable taxation policies by local governments

12
A Look into the Future

• Great development potential
• Further deepening of Chinese reform and full
  development of well-off society creates a great
  potential for the development of scientific and
  technological SMEs.

13
A Look into the Future

• Creating a better environment
• Legal system to be optimized
• Private properties protection through revision of
  the Charter
• National treatment to non-state owned enterprises
  
• Start-up of SME board in stock market
• Enter of non-state owned capital to industries
  and other sectors of economy

14
A Look into the Future

• We believe that the creative power of Chinese
  non-governmental enterprises will be given a full
  play in the process of Chinese industrialization

15
Thank you

• Prof. Bai Yuliang
• Deputy Secretary General
• Chinese Academy of Engineering
• Tel [phone]
• Fax[phone]
• Email byl_at_cae.cn