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Small and medium-sized enterprises (SMEs) in China are facing a critical period of trying tosurvive the global economic slowdown. A recent government report shows a large number of SMEs in the Yangtze River Delta and Pearl River Delta regions have closed some of their factories or suspended production for the time being.The U.S. subprime mortgage crisis, rising inflationary pressure, higher costs for labor, rawmaterials and energy, and a stringent domestic monetary policy have all put enormous external pressure on China’s SMEs. But what is the root cause of the SME survival conundrum? And howcan they be rejuvenated? The 21st Century Business Herald interviewed Chen Naixing, Director of the Research Center for SMEs under the Chinese Academy of Social Sciences, for some answers.
A small and medium-sized enterprises (SMEs) in China are facing a critical period of trying tosurvive the global economic slowdown. A recent government report shows a large number of SMEs in the Yangtze River Delta and Pearl River Delta regions have closed some of their factories. Or suspension production for the time being.The US subprime mortgage crisis, rising inflationary pressure, higher costs for labor, rawmaterials and energy, and a stringent domestic monetary policy have all put enormous external pressure on China’s SMEs. But what is the root cause of The SME survival conundrum? And how can they be rejuvenated? The 21st Century Business Herald interviewed Chen Naixing, Director of the Research Center for SMEs under the Chinese Academy of Social Sciences, for some answers.