SMEs face difficulty despite boost in GDP

%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20steady%20increase%20in%20gross%20domestic%20product%20%28GDP%29%20in%20the%20second%20quarter%20does%20not%20mean%20that%20the%20challenges%20for%20small-%20and%20medium-sized%20enterprises%20%28SMEs%29%20are%20less%2C%20analysts%20and%20entrepreneurs%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAccording%20to%20data%20released%20on%20Wednesday%20by%20the%20National%20Bureau%20of%20Statistics%20in%20Beijing%2C%20GDP%20increased%20by%209.6%20percent%20in%20the%20second%20quarter%20compared%20with%20the%20same%20period%20last%20year%2C%200.1%20percentage%20point%20lower%20than%20the%20first%20quarter%2C%20but%20still%20higher%20than%20what%20experts%20predicted.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20increased%20rate%20of%20GDP%20is%20slightly%20higher%20than%20what%20we%27ve%20expected%20because%20the%20GDP%20rate%20normally%20doesn%27t%20reflect%20the%20current%20economic%20situation%2C%20but%20rather%20the%20previous%20period%2C%22%20said%20Chen%20Zhao%2C%20a%20professor%20at%20the%20China%20Center%20for%20Economic%20Studies%2C%20Fudan%20University.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChen%20said%20that%20the%20latest%20GDP%20figure%20is%20the%20result%20of%20the%20better%20economic%20development%20situation%20in%20the%20past%20two%20years%20and%20the%20current%20worsening%20economic%20environment%20will%20probably%20be%20reflected%20at%20this%20time%20next%20year.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAfter%20a%20series%20of%20tightening%20measures%20the%20government%20has%20put%20in%20place%20since%20October%2C%20including%20five%20interest-rate%20increases%2C%20tighter%20bank%20loans%2C%20the%20restrictions%20in%20real%20estate%20market%2C%20operating%20SMEs%20has%20become%20much%20tougher.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20biggest%20victims%20of%20those%20tightening%20measures%20are%20small%20and%20medium-sized%20enterprises%20all%20over%20the%20country%20because%20of%20the%20increases%20in%20labor%20and%20raw-material%20costs%20and%20difficulty%20getting%20bank%20loans%2C%22%20Chen%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESun%20Shaoding%2C%20owner%20of%20Zhejiang%20Fukang%20Group%2C%20which%20provides%20packing%20services%20and%20color-printing%20materials%2C%20doubted%20that%20higher%20GDP%20growth%20reflected%20the%20actual%20hard%20times%20he%27s%20suffering%20at%20the%20moment.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Being%20an%20enterprise%20in%20coastal%20cities%2C%20the%20labor%20shortage%20with%20the%20higher%20labor%20costs%2C%20the%20increased%20material%20prices%20and%20daily%20expenses%2C%20and%20the%20financial%20problems%20came%20together%20to%20make%20production%20slow%20and%20less%20efficient%2C%22%20Sun%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESun%27s%20company%20was%20expected%20to%20see%20an%20over%2020%20percent%20increase%20in%20profit%20but%20remained%20at%20about%20the%20same%20amount%20as%20last%20year.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20GDP%20statistics%20probably%20haven%27t%20reflected%20the%20overall%20situation%20of%20all%20enterprises%2C%20especially%20small%20and%20medium-sized%20enterprises%20like%20us%2C%20which%20are%20facing%20severe%20financial%20problems%2C%22%20Sun%20said.%3CBR%3ETo%20solve%20the%20problem%2C%20more%20support%20policies%20were%20needed.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20decrease%20of%20international%20orders%20and%20the%2030%20percent%20increase%20in%20labor%20and%20material%20costs%20have%20put%20enough%20pressure%20on%20SMEs%20so%20that%20the%20municipal%20government%20in%20Wenzhou%20encouraged%20companies%20look%20abroad%20for%20better%20opportunities%2C%22%20said%20Zheng%20Chenai%2C%20the%20chairman%20of%20Wenzhou%20Chamber%20of%20Clothing%20Commerce.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EZheng%20added%20that%20SMEs%20have%20to%20face%20these%20challenges%20with%20the%20tighter%20government%20policies%20and%20only%20the%20most%20competitive%20ones%20will%20survive.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESome%20analysts%20have%20speculated%20that%20the%20government%20might%20try%20to%20ease%20the%20situation%20in%20the%20second%20half%20of%20the%20year.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20current%20economic%20structure%20is%20not%20very%20balanced%20because%20it%20pays%20too%20much%20attention%20to%20certain%20fields%20to%20benefit%20the%20State-owned%20companies%20and%20ignores%20the%20SMEs%2C%20especially%20in%20the%20allocation%20of%20bank%20loans%2C%22%20Chen%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChen%20added%20that%20SMEs%20should%20be%20given%20more%20opportunities%20by%20allowing%20private%20capital%20to%20enter%20the%20financial%20market%20and%20loosening%20policies%20to%20benefit%20all%20enterprises%20in%20all%20industries.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EDing%20Ningning%2C%20a%20research%20fellow%20at%20the%20Development%20Research%20Center%20of%20the%20State%20Council%2C%20predicted%20that%20inflation%20in%20some%20areas%20will%20decline%20and%20prices%20will%20fall.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20cash%20flow%20of%20certain%20SMEs%20has%20been%20invested%20in%20the%20real%20estate%20market%20so%20I%20suggest%20that%20the%20government%20could%20encourage%20them%20to%20keep%20their%20focus%20on%20production%20instead%20of%20investing%20in%20financial%20products%2C%22%20said%20Ding.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3C/FONT%3E%26nbsp%3B%3C/P%3E