Private Smes In China Studies

The non-state-owned economy is playing more and more important role in the course of Chinese economical construction. Non-state-owned Small and Medium Sized Enterprises(SME)are not only the main makers of the past achievements but also the key force of Chinese continuous and high-speeded economical growth. But the financial difficulties of the non-state-owned SMEs are now not only preventing them from further developing but also directly restraining the whole country's economical growth. So it is of great strategic meaning to find the ways of financing for the non-state-owned SMEs and help them continuously release their great power of economical construction.Having many years of managerial experiences, the author tried to analyze the above problem with the general principles of the Institutional Economics and the Property Theory and proposed several practical suggestions.Conclusions are as follows: 1 It must be our country's long term strategic choice for the political and economical reformation and the social developments to raise vigorously the non-state-owned SMEs 2 The three root causes of the difficulties of financing of the non-state-owned SMEs are (1) the seriously falling behind and the very low efficiency of the financial reformation of the government (2)the uneconomical behavior and the discrimination against the non-state-owned SMEs of the big monopolistic state-owned financial system.(3)the defect of credit of the society caused by the lack of protection for the private property right which leads to the short term behavior in the production deals and the adverse selection and the moral risk in the financial transactions.3 The difficult conditions for the non-state-owned SMEs' financing are just phenomena which show thefalling behind of the country's financial reformation and the shortcomings of the institutions. So it must be the most important task among all the country's economical reformations to carry out the financial reform which must focus on the property reformation first, including the establishment of the system of non-state-owned small and medium sized financial organizations and the shrinking reconstruction of the state-owned financial institutions. 4 After the clear property rights being affirmed and the private property rights being protected forever and the perfect financing environment being established, the non-state-owned SMEs will finance easily and China will see her rapid economical growth.Finally the thesis framed several logical solutions to the above problem so as to make the study and practice more efficient.