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Small and medium-sized enterprises (SMEs) have emerged as an important engine of China's foreign trade growth, according to a recent industrial report.

 

More than 40 million small and medium-sized businesses make up about 99.6 percent of China's enterprises, and they accounted for 70 percent of the country's total foreign trade worth US$1,422.12 billion last year, according to the China Small and Medium Enterprise Index of Economic Development released by Nankai University.

 

The index shows that nearly 60 percent of China's gross domestic product was generated by small and medium-sized enterprises last year. SMEs account for more than 48.2 percent of the country's taxation revenue and 60 percent of the total sales volume.

 

Seventy-five percent of urban-based employees work for SMEs, said the index.

 

The Tianjin-based University was commissioned by the National Development and Reform Commission and the Finance Ministry to compile the report.

 

(Xinhua News Agency December 1, 2006)