Chinese SMEs Seek Partnership with World's Top 500 Companies

Home>>Business

Last updated at: (Beijing Time) Sunday, September 22, 2002

Chinese SMEs Seek Partnership with World's Top 500 Companies

Small and medium enterprises (SME) in China have diverged to provide parts and services for the world's top 500 companies and to support the country's sustained economic development.

DISCUSSION

CHINESE

SEND TO FRIEND

Small and medium enterprises (SME) in China have diverged to provide parts and services for the world's top 500 companies and to support the country's sustained economic development.

More than eight million SMEs, accounting for 99 percent of China's total enterprises, account for 60 percent of the nation's industrial output and exports. These enterprises also employ threequarters of the labor force.

A majority of these companies have gained their strength from complementing international corporations.

Lorraine Ruffing, an official with UN Trade and Development, said that globalization and liberalization had generated new markets for both big and small enterprises. Transnational companies had responded by concentrating on their core operations,complemented by strategies for outsourcing operations in which they did not have a competitive advantage.

"This has created opportunities for a select group of SMEs to forge links with transnational companies," said Ruffing, head of the Technology and Enterprise Division of the UN Conference on Trade and Development, at the World Convention of SMEs here.

Renowned Chinese economist Fan Gang said globalization required products and resources to be allocated around the world. Transnational companies' entry into the Chinese market had brought opportunities for SMEs to complement them.

"The linkage has brought Chinese SMEs technology and marketing strategies as well as profits," said Fan.

Changzhou in China's booming Yangtze Delta Area has set its goal to develop SMEs and establish a modern manufacturing base. "Our target is to foster component providers for the world's top 500 corporations and a logistic base for Shanghai, now China's economic powerhouse," said Changzhou Mayor Fan Yanqing.

Questions?Comments? Click here

SMEs Expected to Spend US$12b in 2002 - Analyst

Capacity building key to SME growth: China

SMEs Vital for Sustained Growth of China's Economy

Know Who to Love, Who to Hate ( 2 Messages)

China to Build up Oil Stockpile ( 2 Messages)

China Since 1990: Facts and Figures Tell of Rising Prosperity ( 26 Messages)

Dozens Could Have Died in Food Poisoning in Nanjing ( 19 Messages)

China Hopes to See Iraqi Issue Resolved Within UN Framework ( 43 Messages)