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BEIJING, Dec. 1 -- Amid the coupling effects of shrinking global demand and rising operating costs, it has been a dramatic upheaval this year for domestic small and medium-sized enterprises (SMEs) after China started its reforms 30 years ago. Even as the scene appears a bit scary, there is still a ray of hope if only entrepreneurs note the writing on the wall and go all out to cut costs before they raise the clamor for a bailout.Two women make beds on a production line of the small private firm Nangang Shoemaking Factory in Foshan, Guangdong province.In the first half of 2008, much before the world saw the capital markets going topsy turvy amid the global economic slowdown, over 67,000 SMEs in China went bankrupt, while more than 10,000 labor-intensive textile enterprises downed shutters, according to figures from the Department of SMEs under the National Development and Reform Commission. In October, 714 companies were closed in Dongguan in Guangdong province, home to over 60,100 private companies and a major manufacturing center in China. "We will see more companies closing in the coming months, with the figure likely to cross 1,000 after Christmas," says Dongguan Deputy Mayor Jiang Ling. Most of the international buyers of Chinese products failed to get letters of credit in October leading to significant cancellations of Christmas orders, says Frank FX. Gong, chief China economist at JPMorgan Securities (Asia Pacific) Limited in a recent report. "Indeed, 'things suddenly ceased' was the common comment we heard on the ground lately," he says. But for some like Luo Chun, sales director of tin box maker Dongguan Tinpak Co, the freeze on Christmas orders has not yet meant closing. Luo says overseas order fell by 10 percent from June to October, normally the peak time for Christmas orders.
BRUSSELS, Jan. 29 (Xinhua) -- Chinese Premier Wen Jiabao arrived in Brussels on Thursday evening for an official visit to the European Union (EU) headquarters. The premier was welcomed at the Brussels international airport by European Commission officials, Belgian Foreign Ministry officials, officials of the Chinese mission to the EU and the Chinese embassy in Belgium, as well as Chinese students studying in Belgium. In a written statement distributed to the press upon his arrival, Wen said the world is undergoing profound changes with a volatile international situation, more regional conflicts and a spreading financial crisis. In this context, to enhance dialogue, promote consultations and deepen cooperation is in the interests of both China and the EU, and in line with the trend of the times, which is for peace, stability and development, he said. Wen said he is looking forward to having frank and in-depth exchange of views with EU leaders on China-EU relations, on how to jointly deal with the global financial crisis, and on other international and regional issues of common concern. "I hope and believe that this visit, as an important trip of confidence, will enhance the confidence of China and the EU in their future relations and in practical and mutually beneficial cooperation. I also hope and believe that this visit will enhance the confidence of the international community in the all-round strategic partnership between China and the EU," he said. During his two-day visit in Brussels, Wen is scheduled to hold talks with European Commission President Jose Manuel Barroso. He will also meet EU foreign and security policy chief Javier Solana. Brussels is the third leg of Wen's European tour after Switzerland, where he attended the annual meeting of the World Economic Forum in Davos, and Germany. The trip will also take him to Spain and Britain.

BEIJING, Nov. 25 (Xinhua) -- Chinese Premier Wen Jiabao sent a congratulatory message to a UN meeting in observance of the International Day of Solidarity with the Palestinian People to be held Tuesday at the UN headquarters in New York. Wen extended warm congratulations to the opening of the meeting in observance of the International Day of Solidarity with the Palestinian People on behalf of the Chinese government. The Palestinian issue is the core of the Mideast problem. China staunchly supports the restoration of the legal rights of the Palestinian people as well as the Mideast peace process, the message said. China hopes that Palestine and Israel would stick to the path of peaceful negotiations on the basis of related UN resolutions and the "Land for Peace" principle to establish an independent Palestinian state at an early date, so as to realize peaceful coexistence between the Israeli and Palestinian states, it said. To resolve the Palestinian issue at an early date is the aspiration of the people in the Mideast as well as the common expectation of the international community, it said. As a permanent member of the UN Security Council, China will continue to support the United Nations in playing an important role in solving the Mideast problem and pushing forward the settlement of the Palestinian issue, said the message. The Chinese government will also work with the international community to make unremitting contributions to peace, stability and development in the Mideast, it added.
Li Changchun (2nd L, front), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, visits Rong Bao Zhai Studio at Liulichang in Beijing, capital of China, on Dec. 16, 2008. Li Changchun paid a visit to Chinese Publishing Group (CPG) on Tuesday. BEIJING, Dec. 16 (Xinhua) -- Senior Party Leader Li Changchun encouraged domestic publishers to actively explore international market when inspecting a large state-owned publishing house here Tuesday. "China will need more publishers with multinational business and international influence," said Li, member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, in his visit to the China Publishing Group (CPG). The company now owns 29 publishing houses including the renowned Commercial Press, SDX Joint Publishing Company and Rong Bao Zhai, the 300-year-old gallery of antique art works. Li Changchun (2nd L, front), member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, visits the Commercial Press in Beijing, capital of China, on Dec. 16, 2008. Li Changchun paid a visit to Chinese Publishing Group (CPG) on Tuesday. It also operates 44 magazines and three daily newspapers as well as holding a stake in more than 80 companies. The CPG should take its own advantages and seize the opportunities to reform itself to be a modern publishing house. It should expand new businesses while consolidating traditional ones, Li said. Domestic publishers should step forward into the international market, improve their international competitiveness and work with foreign counterparts, Li said. He also asked them to produce more publications that benefited the society and meet ordinary readers' interests.
BEIJING, Jan. 26 (Xinhua) -- Finance Minister Xie Xuren said Monday there would be growing difficulty balancing China's budget this year, and he urged officials to avoid unnecessary spending. In a Lunar New Year greeting on the ministry's homepage, Xie said that the external and internal conditions affecting China's social and economic development in 2009 were "very severe" and more difficulties had to be overcome to achieve "steady and relatively fast" economic growth. Xie said government funds should be used efficiently as the government carried out an active fiscal policy to support public investment while cutting taxes. To stimulate the economy, the government has raised export tax rebates three times since July, increased farm subsidies and endedthe value-added tax for equipment purchases -- a move that's expected to reduce companies' tax bills by 120 billion yuan (about 17.4 billion U.S. dollars) a year. Moreover, the threshold for individual income tax, which now stands at 2,000 yuan per month, is likely to rise. Although 2008 fiscal revenue grew an estimated 19 percent from 2007 to some 6 trillion yuan, the economic slowdown, falling corporate profits and tax cuts drove down fiscal revenue in the second half of last year. Last year, the economy grew 9 percent year-on-year, ending a five-year period of double-digit growth. Xie said earlier this month that the fiscal decline might continue this year. The Finance Ministry has imposed tighter controls on the general administrative expenditure of local governments. For example, local governments have been ordered to limit the year's spending on car purchases, meetings, catering and overseas travel to no more than the amounts spent last year. Jiangxi Province has urged officials to avoid unnecessary travel and vowed to cut meeting outlays by 20 percent from the 2008 level, catering expenses by 10 percent, and international business travel costs by 10 percent. Many local governments, meanwhile, said they would step up investment spending in 2008. Shaanxi Province, for example, said it planned to invest 40 billion yuan in education, job re-training, public sanitation and social security, up 21 percent from last year, while Henan Province will invest 40 billion yuan to raise living standards. These and other local governments announced investment plans after the central government put together a 4-trillion-yuan stimulus package in response to ebbing growth.
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