What is the Economic Secret of China? - CyroTalk.org
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Wednesday, September 12, 2018

What is the Economic Secret of China?

Reflecting from China today is a country with the number two economy in the world that has made the United States staggering to launch trade protection and trade wars. Also predicted by the PWC in 2050 China will become the number one economy in the world. Whereas China in 1950-1960 was still in a state of economic difficulties and starvation. Their real secret is the strength of the SMEs whose government policy encourages SMEs and Home industries in every house whose initial class of imitator turns into Innovators today, (although we are only told that the secret is to build as much infrastructure as possible) in addition to the ingenuity of their governments that require investors foreigners transfer technology when investing in China.

It turns out that in addition to the flow of foreign capital and high technology, what is very interesting from the Chinese experience is the magnitude of the role of Small and Medium Enterprises (SMEs) and regional private businesses called Township and Village Enterprises (TVEs) in sustaining their export power.

Important Role of Township and Village Enterprises (TVEs) for the Chinese Economy

TVEs' contribution to the Chinese economy cannot be underestimated. TVEs which were originally a development of the rural industry promoted by the Chinese government. If in 1960 the number was only around 117 thousand, but since the reformation in 1978 the number experienced a spectacular growth to 1.52 million. When viewed in terms of employment provision, TVEs in the late 1990s had accommodated half of the workforce in rural China.

Although the development of these TVEs had experienced ups and downs and was not evenly distributed in all regions of China, on average they experienced very impressive growth. The production of TVEs increased by an average of 22.9 percent in the period 1978-1994. Nationally, the output of TVEs in 1994 reached 42% of all national production. As for export volumes, TVEs contributed a third of China's total export volume in the 1990s.

Besides that, China also has an eCommerce platform like Alibaba that markets their SME products throughout the world and of course after their big, advanced and developing SMEs are aggressively building road infrastructure to support the output traffic of SME products and their industries.

Our Society as an SME platform can encourage an economy that is better facing economic aggression from other countries in the free market, SMEs as the foundation and economic driving force of a country and also contributing the largest Gross Domestic Product (GDP) of a country and absorbing the most jobs in a country, starting from the real sector SMEs, Home industry, traditional handicraft SMEs, technology startups, Bio technology, Nano Technology and Robotic are likely to continue to flourish.

Maybe what has been our dream has long been the reality of Our Society Technology Platform which is a way and innovation to encourage the development of SMEs. The social mission of our society as a Platform for SMEs is not just limited to the mutual cooperation platform and "the strong help the weak" but is "Help yourself" platform.

Our nation must be a strong, independent, sovereign nation and free from intervention. At present our economic fundamentals are weak against external influences due to the lack of growth of SMEs and the real sector as the foundation structure and driving force of the economy.

We urge anyone you and whatever your profession to provide support for the development of SMEs in various corners of the world both in the form of any support, whether in starting pioneering SMEs or providing support to SMEs Home Industries, SMEs in handicraft industries and other SMEs. SMEs must be able to grow, develop and level up to become a giant company that has global competitiveness and opens millions of jobs.

By supporting this society, you will also play a major role in helping drive the progress of SMEs and the world economy.

(Adapted from Fandi, cyroniumnews)

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