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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.

SHIJIAZHUANG, Dec. 31 (Xinhua) -- The trial at a court here in Hebei Province of four executives of the Sanlu Group, the major dairy at the center of China's tainted milk scandal, ended without an immediate verdict at 10:10 p.m. on Wednesday.     The trial opened at 8 a.m.     Prosecutors accused Tian Wenhua, Sanlu's former board chairwoman and general manager, and three other executives of producing and selling fake or sub-standard products.     Sanlu Group Co., Ltd., represented by its trade union chairman Ran Weiguang, was also a defendant.     The three other executives are former deputy general managers Wang Yuliang and Hang Zhiqi, and Wu Jusheng, a former executive in charge of the milk procurement division.     All four defendants were arrested on Sept. 26.     At the end of the trial, Ran, on behalf of Sanlu, offered apologies to children sickened by the tainted milk and their families.     The verdict will be announced at an unspecified future date.

BEIJING, Nov. 2 (Xinhua) -- China's economy is in good shape despite the changing economic environment, and it will maintain stable and relatively fast growth, National Bureau of Statistics (NBS) chief Ma Jiantang told Xinhua on Sunday.     "The fundamentals of China's economy remain unchanged despite the changing world economic environment," the new NBS director said. "We should be confident about the country's economic outlook."     The world's fastest economic growth rate, successful commodity price controls, increasing foreign exchange reserves and good employment rates were the factors to support the economic fundamentals, said Ma.     The consumer price index (CPI), the main gauge of inflation, eased to 4.6 percent in September from the same period last year. It hit a 12-year high of 8.7 percent in February.     The country's gross domestic product (GDP) grew by 9.9 percent in the first three quarters, 2.3 percentage points down from the same period last year.     The slowdown was a result of combined effects, including the global financial crisis, the world economic downturn and severe domestic natural disasters, Ma said.     However, he said, "We should be confident about the country's economic outlook." The country had rich resource reserves, great market potential, vigorous enterprises and the government had strong macro-control abilities.     The government had made a series of macro-economic policy adjustments against the changing economic environment, which would guarantee a steady and sound economic development, he said.

BEIJING, Nov. 28 (Xinhua) -- Chinese President Hu Jintao said Friday the top priority of the country's 2009 agenda on economic development is to maintain a "stable and relatively fast growth", amid the grim global economic downturn.     "We will ensure a quality and fast growth of the national economy next year," Hu said while sitting down with personages outside the ruling Communist Party of China (CPC) to seek their advice on the country's economic development.     He said the country would pursue an "all-rounded and sustainable" growth that stresses both quality and efficiency.     The world's fastest growing economy saw its growth slow sharply to nine percent year on year in the third quarter, the slowest pace in five years, as a result of slower export and investment growth.     The president said the country would continue to practice "active" fiscal and "moderately loose" monetary policies next year, and would in the meantime strengthen and improve macro controls according to changing conditions.     Such proactive policies is a transition made earlier this month against adverse global economic conditions from the earlier "prudent" fiscal and "tight" monetary policies aimed at curbing inflation and averting overheating.     He stressed the importance of boosting domestic demands, saying the country would bring consumption to play a bigger role in driving the economic growth, and the expansion of consumer spending would receive more prominent emphasis.     China would also increase its investment in rural areas, agriculture, and farmers "by a large extent" to guarantee the development of the agricultural sector and ensure the output of grain and other farm produce, according to the president.     Hu said the country would continue to promote economic restructuring. China has been working to reduce its heavy reliance on exports and investment over the past years.     "The country needs to take the challenges of the ongoing global financial crisis as opportunities to accelerate industrial restructuring to create new growth and foster other competitive edges," he said.     China would continue with its reform and opening up, Hu said. "The country will lose no chance to introduce reforms that can promote the development at the right time, and will take note of bringing the market into full play in allocating resources."     The country would actively develop the export-oriented sector and step up the diversification of exporting markets, Hu added.     He also said the country would stick to improving people's living conditions and building a stable society. The country would adopt "more active" employment polices next year, Hu said.     He pledged to improve urban and rural social security systems and vowed intensified efforts in supervision and inspection of food, drug and work safety.     "The country has great potential in economic development and has also accumulated strong capabilities to withstand risks over the past 30 years of reform and opening up," Hu told the non-Communist people.     The non-CPC personages said they endorsed the CPC and government's judgment on current situation as well as plans on next year's economic development. They also offered suggestions on economic issues such as the fight against the financial turmoil, and macro control measures.

VICTORIA, Nov.13 (Xinhua) -- The current international financial crisis will not affect China's cooperation with Seychelles, visiting Chinese top legislator Wu Bangguo said here on Thursday.     Wu, chairman of the Standing Committee of China's National People's Congress (NPC), made the remarks in his meeting with Seychellois President James Alix Michel. Wu said that China's economy will maintain its momentum of growth.     "The crisis will not affect the contracted projects between the two sides as well as prospect of their future cooperation due to the strong growth of China's economy," Wu said. Seychellois President James Alix Michel (1st L) meets with Wu Bangguo (R Front), chairman of the Standing Committee of the National People's Congress, China's top legislature, in Victoria, Nov. 13, 2008    Wu also briefed the Seychellois president on policies that the Chinese government has adopted to deal with the crisis, promising that China will continue to offer its help to Seychelles according to its own capability.     China is willing to deepen all-round cooperation and hopes to enhance inter-parliamentary exchanges with Seychelles, Wu said, calling the bilateral relationship "a living example" for big and small nations to handle their relations.     "The relations between China and Seychelles can be regarded as an living model for big and small nations," Wu said, adding that China is ready to bring forward the friendly cooperation with Seychelles on the basis of mutual respect and reciprocity.     The Seychellois president expressed his appreciation to China, noting his country could not achieve the economic development alone without China's long-term assistance.     Seychelles hopes to further boost its cooperation with China especially in such fields as infrastructure, energy, agriculture, telecommunication and tourism, the Seychellois President noted.     The president also reiterated his country's adherence to the one-China policy.     Wu arrived here after he concluded his official visit to Madagascar. Seychelles is the final leg of his five-nation African tour which has already taken him to Algeria, Gabon, Ethiopia and Madagascar.