The Chinese Government announced a series of financial measures to help small business manufacturers implicated in the international trade industry.
Nearly 20 percent of the 360,000 small businesses in the province of Zhejiang have failed since the beginning of the year which has a financial impact on the import export firms.
It has become the hottest topic on the Chinese Internet as well as for local leaders. The distress of Chinese small businesses in difficulty of cash takes hysterical proportions to the point that the Government just announced a package of measures to assist and calm the social unrest.
The crisis of Chinese small businesses is symbolized by the amazing epidemic of bankruptcies in the city of Wenzhou, in the heart of the exporting province of Zhejiang. Since the beginning of the year, more than 200 company owners have fled or hid after their funds were drained. Others committed suicide. About 20% of the 360,000 small businesses should already have closed because of lack of money. And the situation should worsen in January, during the Chinese new year period when traditionally business owners take vacations to disappear without paying their employees. The small businesses create approximately 80% of the jobs in the country.
Based on the dramatic situation, the Council of State (Chinese Government) announced a series of financial and tax measures to help small and medium-sized enterprises. Their goal is to first facilitate their access to credit which is contrary to their general policy. The authorities will allow lower reserve requirements ratios for local banks lending to small and medium-sized enterprises. In addition, these small businesses will be able to borrow more easily by issuing bonds. The other aspect is to exempt small businesses from a battery of fees and charges. Banks are also prohibited from charging unreasonable priced services.
Tradeintelligency, www.tradeintelligency provides services to select and evaluate the performance of the manufacturers to which you want to subcontract with. so as to limit your financial exposure. In addition, find out information about your competitor's shipments instantly online. Find out who their suppliers are and what these suppliers are shipping - and how much. Or, track your own shipments. Tradeintelligency can see the evolution of products by sector, firm in the form of graphs, statistics for the last five years. This tool can measure the reliability of subcontractors or be aware of the evolution of the activity of competitors, partners or customers.
# # #
US Customs database an Trade Intelligence regarding imports and exports on manufacturers: