alvin donovan

alvin donovan - Retired RCMP Inspector Bill Majcher is one of the most celebrated undercover officers inside the good reputation for America and contains gone from infiltrating Colombian cocaine cartels, to taking down Russian mob owned banks to hanging out in jail with terrorists accused of probably the most horrific crimes.



He was previously the head with the criminal enforcement division from the stock trading game.



He's the Md from the Baron Group resides in Hong Kong and where he continues his legacy of helping the right companies be successful.



We recently interviewed him concerning the SME arena in China:



Alvin Donovan: We noticed that the SME market in China is beginning to change so rapidly most westerners don't understand the implications. Why is that?



Bill Majcher: You're right. Most people don't realize that the quantity of SMEs in China is approximately 40 million! This accounts for approximately 75% from the urban employment in China.



Alvin Donovan: What's the economic importance of that?



Bill Majcher: It is crucial. As an example, in the first 5 months of 2008 alone, Chinese SME's achieved RMB 6.Fifty Eight trillion of output in indistry. A large proportion of these businesses are located within the coastal provinces, the place where a quantity of Special Economic Zones were first established, thus becoming the top economic engines for your Chinese economy. Most western investors and JV partners understand Tianjin, Dalian, Shanghai, Guangzhou, Dongguan etc.



Alvin Donovan: Which are the major challenges towards the Chinese SME market?



Bill Majcher: Towards the end of 2008, China like the world was depressed by the economic crisis that swamped the global economy. China experienced slower export growth concurrently while they were coping with slowdown in direct foreign investment and were reacting to major labour and employment reforms made to enhance the rights and benefits of workers.



Increasing labour costs as well as an appreciating Chinese currency, coupled with increasingly expensive garbage led to 67,000 SMEs in China suffering losses or filing for bankruptcy inside the first half of 2008 alone..... over twenty million laborers were retrenched.



Alvin Donovan: What's been done to change this?



Bill Majcher: In September 2008, to assist the development of SMEs, the Ministry of Finance announced a RMB 3.51 billion special fund.



The central treasury implemented six measures, which included supporting SMEs in developing online companies, funding and supporting technological innovation and R&D, expanding credit guarantee systems, and enhancing the financing environment specifically for SMEs. It is important to recognize that the Chinese economy is sustained by three drivers; Investment, Exports, and Consumption.



In line with the UN, China has already been the earth's number 1 people receiving Direct Foreign Investment so there isn't much more China can perform compared to already doing to attract foreign investment. For Exports, China has little control over the buying habits of your beleaguered global consumer who're themselves experiencing personal financial hardship as a result of the financial meltdown.



Domestic Consumption is the one driver that China could affect and they have very successfully succeeded in doing so. Significant land reform has taken place that has motivated more rural dwellers to maneuver to towns where research indicates that urban dwellers spend 3.Five times exactly what a rural dweller will pay out. Government has provided incentives on the purchase of higher price circumstances to encourage family consumption for things such as washers, dryers, TV's etc.



Alvin Donovan: What has been the effect?



Bill Majcher: You wouldn't believe how good it went! GDP growth is expected to be over 10% this year. China leads the world in economic recovery and development in 2009.



In fact, China has become nervously watching the traditional bogeyman called "inflation" begins to rear its head because of the rapid growth and increase of its domestic economy.



alvin donovan - China has become start to take steps to actually cool off the rising economy and it has did start to position the brakes on some of the stimulus spending and relaxed credit that was provided to sustain the economy throughout the worst with the financial meltdown.