HABERLER & YAYINLAR
20.11.2018
EKONOMİ YAYINLARI

Could SMEs become the weak link in China’s economy?

Could SMEs become the weak link in China’s economy?

When considering risk in the Chinese economy, a lot of the discussion has focused on large State-Owned Enterprises (SOEs), or large private conglomerates. However, headwinds impacting an understated group of smaller firms have the potential to be much more disruptive: Small and Medium Enterprises (SMEs) account for the majority of enterprises and a sizeable proportion of employment. However, the need to address financial stability risks associated with China’s vast corporate indebtedness – most of which has historically been associated with SOEs – has left SMEs scrambling to access financial resources to meet their working capital and long-term expansion needs.

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Verda YAKAR

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verda.yakar@coface.com 

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