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Manufacturing SMEs in China

Small and medium enterprises (SMEs) acts a pivotal part in global economy (Mbuyisa & Leonard, 2016). Sabaghi et al (2016) mentioned that one way to achieve sustainability is by practicing sustainable manufacturing and development. The key to advancing and achieving the sustainability goal by organ. SMEs not only provide employment opportunities but also narrow the gap between rich and poor (Temtime & Pansiri, 2006). SMEs form a vast majority of China’s firms and are crucial to its economy growth which accounts for 99.6% of China’s companies, representing over 60% of China’s gross domestic product and over 50% of taxes (Guo, 2017).

Table 1: Definition of SMEs in China

Source: Chinese Ministry of Industry and Information technology, National Bureau of Statistics, National Development and Reform Commission, Ministry of Treasury, 2011.

Each year the World Bank Group (WBG) invest a large amount of money, namely in 2004, WBG supported approximately $2.8 billion to aid SMEs growth (Ayyagari, Beck and Demirguc-Kunt, 2007). Since the 1990s, the rapid development of manufacturing SMEs always promoted the development speed of national economy, chinese market share had increased and it also offer a foundation for local scientific progress (Li, Jinfeng and Xuezhu, 2012). Over the last few years, China’s manufacturing capabilities increased rapidly and Chinese supply chains became more complex. As a super country in manufacturing industry, China own great quantity of SMEs in manufacturing and was known as ‘factory of the world’ (Harney, 2008). The sustained growth of the Chinese economy is largely driven by the impressive performance of its manufacturing sector (Srai and Shi, 2009). Recently, with the popularity of implementing Sustainable Supply Chain Management (SSCM) and wide spreading emerging economies, most of the traditional manufacturers began to transform their supply chain being sustainability. SSCM not only bring the big opportunities to Chinese manufacturing industry but also is the future organization transforming trend. At the present stage of Chinese organization, how to implement SSCM to develop “win-win” strategy is the mainstream that organization create income and market share goals by decreasing their environmental risks and impacts

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