Guangdong SMEs to receive 10 Bn yuan aid

06 Dec '08

1 min read

In the face of global financial crunch, small and medium-sized enterprises (SMEs) are finding it difficult to maintain their stability. Thus Guangdong province has approved a monetary aid of 10 billion yuan.

Guangdong, one of the key manufacturing hub of China, for the past few months is struggling to cope with slumping exports, resulting in closures of numerous manufacturing units and labour unrest, due to rising unemployment.

Of the 10 billion yuan, one billion yuan each will be utilized for technology innovation and Government mortgage for bank loans, and 200 million yuan will be used to expand exports.

The on going recession across the globe, especially in the US and EU, major consumers of Chinese goods, has badly hit the exports of the country. Available statistics show that in China more than 67,000 SMEs and 10,000 textile factories have closed down in the first half of 2008.

Guangdong, that houses over 60,000 private companies and Dongguan, one of its major manufacturing cities, around 700 companies had closed down in October. Experts estimate, than in the coming days, the number is likely to cross 1,000 after Christmas.

The central Government had recently announced 4 trillion yuan incentive package to boost economic growth.

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