Study on Cultivation of Core Competitiveness of China’s SMEs in the Economic Globalization Trend.doc

Study on Cultivation of Core Competitiveness of China’s SMEs in the Economic Globalization Trend 1.ZHAO Shu-rong 2. CHEN Xiao-jing 3. PAN Na School of Humanities and Social Science, University of Electronic Science and Technology of China, Chengdu, P.R. China, 610054 Abstract China’s entry into WTO of brings unprecedented vitality to Chinese economic development; meanwhile it also provides vast opportunities for the development of Chinese SMEs. This thesis first analyzes the history and present situation of SMEs in developed market economy countries, then points out that the key point in promoting smooth development of Chinese SMEs on this once-in-a-thousand-years occasion is to cultivate their Core Competitiveness through various ways and turn their comparative advantages into competitive advantages, hence we can explore a unique road of developing SME with Chinese characteristics on the basis of researching into and solving the problem of “congenital deficiency” of Chinese SMEs. Key words SME, Core Competitiveness, Competitive advantages 1 Introduction Nowadays, with the Chinese economy developing fast, SMEs in China are playing a very important role in promoting economic growth, increasing people’s income, buffering the employment pressure, realizing the technical innovation and optimizing the production structure. At present, considering the situation of development of SMEs in China, the number of registered SMEs exceeds 10,000,000, accounting for 90 percent of China’s enterprises, and their industrial gross output value amounts to 60 percent of that of the whole country, meanwhile, they provides about 75 percent of job opportunities in towns. Now, the development of Chinese SMEs is facing unprecedented opportunities but also great challenges along with her entry into WTO. Gradually, Chinese SMEs require new policies and clear development guidance after they move on to a comparatively higher phase of development, so they must draw lessons from the developing e