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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.

Chinese Vice Premier Li Keqiang (front, 2nd R), also member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, visits a manufacturing factory of the Commercial Aircraft Corporation of China Co., Ltd. (COMAC) in east China's Shanghai municipality Dec. 12, 2008. Li inspected Shanghai from Dec. 12 to Dec. 13, 2008.     SHANGHAI, Dec. 14 (Xinhua) -- China's vice premier Li Keqiang stressed the priority to maintain stable, healthy economic growth through domestic demand expansion and economic restructuring during his two-day inspection tour in the eastern metropolis of Shanghai.     He said the economic development was the foundation for solving all problems. As the central government had pointed out, priority should be given to maintaining stable and relatively fast economic growth next year.     This would be achieved through expanding domestic demand, restructuring the economy and transforming the growth pattern. All would ultimately target improving people's living standard. Chinese Vice Premier Li Keqiang (C), also member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, visits the Yangshan Port in east China's Shanghai municipality Dec. 12, 2008.    Li paid a visit to the city from Dec. 12 to 13. He expressed appreciation for the progress Shanghai made in developing the Pudong New District and said the only way to sustain growth was to "deepen the opening-up".     He urged local authorities to let the market play a fundamental role in the allocation of resources, step up innovation in corporate management.     While visiting Yangshan Deep Water Port, he said planers need a "broad vision", adding that efforts should be made to sustain and expand export to sharpen the country's competitive edge in the global market.     During his inspection tour at local companies such as Baosteel Group Co. and China UnionPay, he said companies were the main drive of domestic demand expansion. They must accelerate technological innovation and structural adjustment.     Meanwhile, local government should encourage development of service industry, as well as advanced equipment manufacturing and high-tech industries, he said.     The vice premier also visited local communities and chatted with residents. He said the government would continue promoting reforms in the housing and medicare systems. The ultimate goal was to improve people's living condition.

YICHANG, Hubei, Nov. 7 (Xinhua) -- The Three Gorges Project has completed trial water storage operations for the year, with the water level in the reservoir exceeding 172 meters.     As of Tuesday, the water level had risen 27.3 m since Sept. 28,when this year's storage plan began, said the developer of the massive water conservancy project, the China Three Gorges Project Corp. (CTGPC) on Friday.     The water-raising measures ended on Tuesday when the water behind the dam reached 172.3 m and the reservoir held more than 19.3 billion cubic meters of water. The reservoir then began to discharge water.     Generally speaking, the trial operation, which is a test of quality, went well. The structure, generators and shipping locks were all in normal condition and the water quality was not affected, said a CTGPC statement.     The water level is expected to reach 175 m in 2009 when the Three Gorges project is completed.     At 156 m, the target level for the second phase, the reservoir could be fully functional in terms of flood control, power generation and navigation control.     Launched in 1993, construction of the gigantic concrete structure of the dam was completed and began to store water in May2006.     Previously, the reservoir's temporary cofferdams held water at a depth of 135 to 139 m.     The Three Gorges Project, with a budget equivalent to 22.5 billion U.S. dollars, is a multi-functional water control system built at the upper and middle reaches of the Yangtze River.     Its main works are a dam, a five-tier ship lock and 26 hydropower turbo-generators.     The dam will have 14 turbo-generators on the left bank and 12 on the right. Combined, they will produce 84.7 billion kw of electricity annually.     There are plans to add six more turbines by 2012.     As of June, 1.24 million residents had been relocated to make way for the dam construction.

LIMA, Nov. 19 (Xinhua) -- Visiting Chinese President Hu Jintao met his Peruvian counterpart Alan Garcia Wednesday in Lima for talks on how to deepen comprehensive cooperative partnership between China and the Latin American nation.     The meeting took place soon after the Chinese leader's arrival in the Peruvian capital from Havana.     In a written statement issued upon his arrival here, the Chinese president said he will exchange views with Garcia and other Peruvian leaders on ways to deepen bilateral ties.     Following their talks, the two leaders will attend a signing ceremony of documents on cooperation in trade, customs, quality control and poverty reduction.     Peru is one of China's major trading partners in Latin America,with two-way trade totaling 6 billion U.S. dollars in 2007, a 53 percent increase over the previous year.     While in Lima, Hu will attend the Economic Leaders' Meeting of the Asia-Pacific Economic Cooperation (APEC) forum, which will focus on the world financial crisis, support for the Doha round oftrade talks, food and energy security, and regional economic integration.     The Chinese president will also meet with leaders of several APEC member economies on the sidelines of the APEC meeting.

LONDON, Feb. 2 (Xinhua) -- Airbus and Xi'an Aircraft Industry Company (XAC) signed a cooperation agreement here on Monday to have the A320 Family wing "fully completed and tested" in China.     The agreement signed by Brian Fleet, Airbus senior vice president, and Meng Xiangkai, president of XAC, in London, in the presence of the visiting Chinese Premier Wen Jiabao and his British counterpart Gordon Brown.     According to this fourth phase of the agreement, the wing equipping and testing will be done in Tianjin in a facility to be newly built close to the A320 FALC by XAC, a wholly owned subsidiary of China Aviation Industry Corporation (AVIC).     The fully equipped and tested wings will be directly delivered to the nearby Final Assembly Line.     The wing box structures assembled by XAC in China are now completed at Airbus' Broughton site, before being transported to the Final Assembly Line in China.     The wing equipping operations are expected to start at the end of 2009, followed by the first delivery of a fully equipped set of wings in the first quarter of 2010.     "With this project, Airbus is fulfilling its support to the cooperation agreement regarding A320 China wing manufacture," said Fleet.     He said that having this facility close to the FALC is the most efficient industrial solution which will save transportation costs, reduce lead-time and risks in handling, and ensures quicker response time to our customers.     Meng said that "I am confident that we will also be successful with this fourth phase, after successes in the first three phases."

来源：资阳报