Small and medium-sized entities are contributing the lion share to economic growth also in China. They produce 68% of all Chinese exports which is much more than in other countries. Given that Chinese exports are growing twice as much as the Chinese economy as a whole, small and medium-sized entities (SMEs) generate the lion share of Chinese growth, as was said by Chris Hall who is an Australian economist in an interesting article for the ifo-Institute.
The majority of Chinese SMEs were founded as late as in the last decade. Their total number is currently said to amount to 40 millions. As compared to US and European SMEs the Chinese are twice and five times more internationally orientated. The heavy internationalization of the Chinese SMEs is a huge challenge to Europe. Adaptation processes are unavoidable. One solution identified by Mr. Hall is a stronger internationalization of European SMEs according to the Chinese model.
The article by Mr. Hall is available in English for free-of-charge download.