BEIJING, October 8, 2022 /PRNewswire/ — By Beijing RevIew: On January 2110 days before the Spring Festival holiday (from January 31 to February 6 this year), the workshops of Baoji Saiwei, a heavy machinery manufacturer in Baoji, Shaanxi Province to the northwest China, are in full swing to fulfill their orders. At the end of 2021, Saiwei had already received its orders for the first half of 2022. Deputy General Manager Li Hui said Beijing Review, “We need to deliver the products on time as well as explore new markets.”
The same day in the capital of BeijingDu Peifan, founder of ZhiqingFin, an artificial intelligence (AI) company focused on smart voice services, was doing his routine work, taking his employees through a checklist in service to their banking customers.
the next day, January 22in Yiwu, known as the world’s largest wholesale market for consumer goods in the eastern province of Zhujian, Wei Lingying, CEO of OMAWine International, a Spanish wine and food importing company, is busy taking and delivering orders. Way even struggled to push this through Overview of Beijing an interview.
Although they operate in different sectors and play separate roles in the market, all three are part of the strongest component of the Chinese economy – small and medium-sized enterprises (SMEs).
of China SMEs, representing approximately 99 percent of all businesses nationwide, are the driving force behind of China economic and social development. According to a 2020 report by the Ministry of Industry and Information Technology, over 50 percent of national tax revenue and 60 percent of GDP originate from SMEs. They create 70 percent of technological innovation and 80 percent of urban employment.
However, these companies face many difficulties and concerns regarding their further development.
COVID-19 outbreaks, rising commodity prices, supply chain issues and financial difficulties, among others, pose insidious challenges.
The rising cost of importing wine and food products, combined with declining demand due to the pandemic, has left OMAWine International on its toes. Compared with the time before the pandemic, wine orders are down 20 percent in this year’s pre-Spring Festival sales season, according to Wei.
On the plus side, all three companies are still alive and well, inspiring those willing to take up entrepreneurship.
Saiwei only stopped production for a short period of time at the very beginning of the COVID-19 pandemic in early 2020 and soon resumed operations. “Like gears, we are the integral parts that keep the of China industrial chains and supply chains,” Li said. “We, SMEs or private companies, could not just give up and close shop; we are not only businesses, but also the economic backbone of our workers’ families.”
Trials and tribulations
SMEs usually cluster in competitive industries, making it essential for them to adjust their business models and actively find new growth opportunities in the new market environment, Zhang said.
Compared with big smart speech companies that only provide one standard product, ZhiqingFin’s customized services are better, especially in the after-sales field, according to Du. The pandemic as a whole is driving technological expansion, with AI already being widely applied. Yet funding remains an issue. It is a difficult task for Du to raise the company’s funding to invest in technological capacity and service research.
Pan Gongsheng, Deputy Governor of the People’s Bank of Chinathe country’s central bank said at a press conference in September 2021 that meeting the funding needs of SMEs is high on the regulator’s agenda. Loans for micro and small businesses are general 17.8 trillion yuan ($2.75 trillion) of late July 2021up 29.3 percent year over year, according to Pan.
High-tech SMEs such as Saiwei also receive financial assistance. Unlike ordinary heavy machinery manufacturing enterprises, Saiwei caters to the specific requirements of customers. He invested roughly last year 30 million yuan (4.7 million dollars) in research and development.
The company was inducted into the Little Giant Firms program, covering small businesses in their early stages of development, all focusing on high-end technology. This could bring Saiwei millions of yuan in research support next year. Du’s company also applied for the program.
So what does the future hold? of China SMEs? The answer is twofold: Innovation-led and eco-friendly development will be two key directions to promote their high-quality growth during the 14th Five-Year Plan period (2021-25), according to government guidance.
SOURCE Beijing Review