On Law Problem Concerning Small And Medium Enterprises’ Green Financing Of China

Small and medium enterprises in China promote the entire national and regional economic development, and ease the employment pressure in China. However, the average duration of small and medium enterprises in china short. Hence, the development of small and medium enterprises has always been difficult to shake off the shackles of financing constraints. The difficulty to finance small and medium enterprises has always been the bottleneck which has hampered their development. In addition to the internal and external causes such as a weak awareness of corporate credit, defective financial system, imperfect financial guarantee system and financing system for small and medium enterprises, the underlying cause which is worthy of exploring is the inability of small and medium-sized enterprises’cleaner production and environmental protection in China.Previously, Chinese economy is based on the extensive economic development mode with high energy consumption and high pollution, which has paid a heavy price for economic achievement. The increasing pollutant emission from small and medium enterprises in recent years has become the dominant factor of environmental pollution in China. The development of small and medium enterprises can not be separated from the external financing to support. In order to curb the trend of the small and medium enterprises’serious environmental pollution, green financing is particularly important, environmental protection into financing system, small and medium enterprises compliance with the national industrial policy and environmental protection legal system strictly will be as a key condition for accessing external financing.In order to eliminate the negative impact of pollution on small and medium enterprises’financing, governments have taken all effective measures to support small and medium enterprises of getting green financing. For example, Japan has set up integrated legal rules of financing for small and medium enterprises and established political finance company for small and medium enterprises to get green financing. It also allows the existence of legitimate private financial institutions. Similarly, the United States has legislation to protect small enterprises’green financing and Federal Small Business Administration to support green financing of small enterprises. However, with the absence of legislation, China has only made some policies and documents on this issue. Only touching upon principles, the legal provisions in force do not involve implemented regulations and rules, which make them poor in operability. Combining the successful experience of foreign small and medium enterprises in getting green financing, from three directions of environmental agencies, financial institutions and small and medium enterprises, has analyzed the negative impact of pollution caused by small and medium enterprises on their own development and advanced some new ideas on how to improve the legal system of Chinese small and medium enterprises’green financing from three angles, namely, law, police and self-discipline.