曾育发 ( Chen Yoke Fatt)
杨志强 (Yeo Zhiqiang)
陈家伟 (Robin Tan Kah Wee)
黄培炜 (Edwin, Ng Puay Wei)
陈昌财 (Alex, Chen Changcai)
SMES IN SUNAN REGION: GOOD EXPERIENCE
TO BE LEARNT
苏南地区的中小型企业：发展的路程与经验
CONTENT



Theme Rationale
Report Structure
Preliminary Findings








Introduction and Background of Jiangsu Province, Sunan
The Sunan Model
Traits of TVEs in Sunan
Definition of SME
Case Studies of Companies
Key Lessons to be learnt
What local SMEs can learn from SMEs in Sunan
Questionaire
THEME RATIONALE - “SMES IN SUNAN REGION:
GOOD EXPERIENCE TO BE LEARNT”
Investigate how enterprises in Sunan region
have contributed to the affluence of the
southern Jiangsu province
 Opportunity to visit places in Sunan region to
further improve on research
 Sunan model
 Scope is amply defined

REPORT STRUCTURE
1.
2.
3.
4.
5.
6.
7.
8.
Introduction and Background of Jiangsu Province,
Sunan
The Sunan Model
Traits of TVEs in Sunan
Definition of SME
Case Studies of TVE and other companies
Key Lessons to be learnt
What local SMEs can learn from SMEs in Sunan
Conclusion
PRELIMINARY FINDINGS
Sub-Topic
Completed?
Introduction and Background of Jiangsu Province,
Sunan

Definition of SME

The Sunan Model

Traits of TVEs in Sunan

Case Studies of TVEs and other companies
Key Lessons to be learnt
What local SMEs can learn from SMEs in Sunan
Conclusion

RESEARCH CONSTRAINTS
Case study focus on Wuxi and Suzhou
 No clear cut definition of SME in China

INTRODUCTION AND BACKGROUND OF JIANGSU
PROVINCE, SUNAN
GEOGRAPHICAL DESCRIPTION
Generally
flat and low-lying
Plains covering 68 percent
Well-developed irrigation system
[水乡]
WEATHER
Humid
and subtropical/humid climate zones
-2 to 4°C in January and 26 to 30°C in July
Frequent rain between spring and summer
Average rainfall 800 to 1200 mm, mostly in
summer
MAIN CITIES IN SUNAN
1
Nanjing
南京市
2 Changzhou 常州市
7
Suzhou
苏州市
9
Wuxi
无锡市
13 Zhenjiang 镇江市
Map of Jiangsu Province
NANJING
Government
- CPC Nanjing
Zhu Shanlu
Committee Secretary
- Mayor
Ji Jianye
- Total
6,598 km (2,547.5 sq mi)
- Elevation
15 m (50 ft)
2
Population (2008)
- Total
7,588,900
- Density
1,123.5/km (2,909.9/sq mi)
- GDP (2008)
¥377.5 billion
- per capita
¥50,327
Key Industries:
- Automobile industries
- Electronic
- Petro Chemical
- Textile
2
CHANGZHOU
Government
- Mayor
Wang Weicheng (王伟成)
Area
2
- Prefecture-level city
4,375 km (1,689.2 sq mi)
- Urban
1,864 km (719.7 sq mi)
2
Population (2004)
- Prefecture-level city
3,489,000
- Density
797.5/km (2,065.5/sq mi)
- Urban
2,085,500
- Urban Density
1,118.8/km (2,897.8/sq mi)
- GDP
¥220.2 billion (2008)
- GDP per capita
¥50,283 (2008)
- Major Nationalities
Han
Key Industries:
- Engineering
- Food Processing
- Steel processing
- Textile industry (1920)
2
2
SUZHOU
Government
- Type
- CPC Suzhou Secretary
Prefecture-level city
Jiang Hongkun (蒋宏坤)
- Mayor
Yan Li (阎立)
Area
2
- Prefecture-level city
8,488.42 km (3,277.4 sq
mi)
- Urban
1,649.72 km (637 sq mi)
2
Population (2008)
Key Industries:
- Chemicals
- Computer
- Light machine
- Metal
- Silk
- Prefecture-level city
6,297,500
- Density
741.9/km (1,921.5/sq mi)
- Urban
2,382,100
- Urban Density
1,443.9/km (3,739.8/sq
mi)
GDP
(2008)
- Total
¥670.1 billion
- Per capita
¥106,412 (US$15,322)
2
2
WUXI
Government
- CPC Secretary
Yang Weize (杨卫泽)
- Mayor
Mao Xiaoping (毛小平)
Area
2
- Prefecture-level city
4,787.61 km (1,848.5 s
q mi)
- Urban
1,659 km (640.5 sq mi)
2
Population
- Prefecture-level city
4,471,900
- Density
934.1/km (2,419.2/sq
mi)
- Urban
2,235,700
2
Key Industries:
- Electronics
- Machinery
- Petrol Chemical
- Textile
ZHENJIANG
Government
- Mayor
Xu Jinrong (许津荣)
Area
2
- Prefecture-level city
3,847 km (1,485.3 sq mi)
- Urban
1,082 km (417.8 sq mi)
2
Population (2008)
Key Industries
- Domestic commerce.
- Food Processing
- Paper making
- Prefecture-level city
2,672,100
- Urban
625,400
GDP
¥140.8 billion (2008)
GDP per capita
¥46,473 (2008)
Major Nationalities
Han - 99.43%
Hui
Uyghur
Kazak
Tatar
GDP
RMB Bil
(2007)
 6.19% of China’s GDP
(2007)
 CAGR of 14.72%
1500.00
RMB bil
 1593.10
2000.00
Wuxi
Suzhou
1000.00
Changzhou
Zhenjiang
Nanjing
500.00
0.00
94 95 96 97 98 99 00 01 02 03 04 05 06 07
Year
SUNAN MODEL
SUNAN MODEL
Collective ownership of Township and Village
Enterprise (TVEs)
 Dominant role of local government and party
cadres in rural industrialization
 Priority assets of local economy and main
revenue generator

SUNAN MODEL

Township and Village Enterprise (TVEs)
 formerly
named as “Commune and Brigade
Enterprise”
 surged during economic reforms in late 1970s
 collectively owned by local residents in the rural
areas
 rights of ownership exercised by the town and
village governments (TVG)
COMMON FEATURES/TRAITS OF TVES
Government Support — Favorable policies that
support TVEs
 Management — Separation of ownership and
management
 Resource — high population density
 Industry — developed industry tradition
 Development strategy — pioneers for adopting
the market economy

SUCCESS OF SUNAN MODEL
Began to outdo state-owned players in early
1990s.
 In 1994, rural enterprises accounted for 44% of
China’s industrial gross output, while the
contribution of state-owned firms dropped to a
record low of 34% (calculated from ZTN 1995).
 Leading driver of growth

DOWNFALL OF SU NAN MODEL
Economic growth tapered off
 Rural firm output and profit dwindled
 Declining growth rate
 Pressure to privatization of TVEs
 Sunan Model ended in 2003

TOTAL INDUSTRIAL OUTPUT (BILLIONS) OF TVES
(SUZHOU)
Annual Growth
Rate : 49%
Annual Growth
Rate : -31%
Mid 1990s
•70% of TVEs in Sunan practiced some kind of properties
rights reforms
Late 1990s
•TVEs in Sunan underwent 2 waves of “institutional
change”
First Wave
1997-1998
•Focus on privatizing money-losing small and medium
TVEs
•Promote individual businesses and private enterprises
Second Wave
Late 1998 - 2000
•Focus on privatizing money-losing large TVEs
•Pressed Directors of TVEs to buy the company or take a
share if unable to buy it all out
By 2000
•95% of TVEs in Sunan practiced some kind of properties
rights reforms
DEFINITION OF SME
Private Limited (Non state-owned)
 No regional head office

2 non-Chinese firms
1 Township-Village-Enterprise
CASE STUDIES
SEAGATE TECHNOLOGY INTERNATIONAL (WUXI) CO. LTD
(希捷国际科技（无锡）有限公司)
 opened
in July 1995,
 facility
of 58,000 square meters and workforce of 9,000
 underwent a major expansion in 2002
 earned the distinction of top foreign company by export
value in the Jiangsu Province
 enjoys strong support from the local government
AMTEK (SUZHOU) PRECISION ENGINEERING LTD
(安特（苏州）精密机械有限公司
formerly known as Amtek Engineering Pte Ltd
 company was founded in 1970
 designs, manufactures, and assembles metal,
plastics, and rubber components
 serves various industries:

automotive,
 computer and computer peripherals,
 consumer electronics, electrical,
 mass storage,
 telecommunications

AN EXAMPLE OF A TVE - HUAXI VILLAGE






Richest township-village enterprise in China
Also known as Jiangsu Huaxi Group Corp (江苏华西集团
公司)
Listed in 1999 at Shenzhen Stock Market
Now employs 25000 persons, over 2000 of whom are
middle and senior engineering technicians.
Most subsidiary companies of the Group have imported
advanced production facilities from abroad
Companies are mostly in steel, metal and textile
industries
PROGRESSIVE CYCLE OF HUAXI
State-owned
Privatized
Small Medium Enterprise
Listed Company
KEY LESSONS TO BE LEARNT

To be consolidated after the BSM trip
WHAT SINGAPORE SMES CAN LEARN FROM SUNAN
Innovation from the smallest unit
 Seize the opportunity
 Play to your strength
 Take advantage of local government’s support
which Singapore’s government have

QUESTIONAIRE
请问您觉得苏洲会在哪方面能超越上海？
 贵公司为什么会选择在中国发展?
 请问贵公司在进军国际市场上有什么策略?
 如今中国的市场已近越来越蓬勃了，贵公司要
怎么样打算在这市场上竟争？
 在您的看法，贵公司能够运用中小型企业所得
来的经验来面对将来大公司的挑战？
