A bottleneck choking the smaller firms has been a lack of access to credit. It is not without justification that commercial banks consider smaller businesses bigger risks, and a poorly developed credit-rating system made financing an even bigger task for them. But there are signs that the policymakers are now determined to level that field.

The guidelines vowed to widen credit for smaller companies and pledged to propel rural banks and small loan companies, as well as an improved credit guarantee system and credit-rating system for them.

If appropriately implemented, these measures will breathe life into the small businesses, as they send a strong signal that SMEs will not be left to gain solid footing on their own, said Li Yizhong, Minister of Industry and Information Technology.

Siemens Roars On

The Siemens A.G. underpins its foothold in China as the German conglomerate seeks shelter from the financial storm.

On September 23, the Bosch and Siemens Home Appliance Group opened a $70-million plant in Nanjing, Jiangsu Province, to produce energy-efficient washing machines for the domestic market.

The opening was part of Siemens' efforts to tap into the Chinese market, its second largest overseas market after the United States. Seeing numerous opportunities, the industrial giant in February announced an additional investment of 1.35 billion yuan ($197.5 million) to explore alternative energies in China over the next three years, on top of the 10 billion yuan ($1.46 billion) mid-term investment pledged in 2006.

The company additionally inaugurated its first wind power turbine plant in Shanghai in May, marking its entry into the emerging energy market.

"China's demand for new energies and environmentally friendly technologies will remain robust. This will continue to be a strong growth area for Siemens in China," said Richard Hausmann, President of Siemens China, to Beijing Review.

"Despite a world economy slowdown, we see a bright long-term prospect for our presence here (China)," he added.

For multinational giants like Siemens, the Chinese market is becoming an increasingly calm harbor to weather choppy financial waters. Its China sales revenues increased a robust 19 percent in 2008.

Appliance Increases

As the government stimulus provides a boost to what would otherwise be a sluggish season, Chinese appliance makers are basking in the glow of a substantial turnaround.

The sharp economic upturn has put customers into a shopping frenzy and retailers are stepping up heavy discounts in a warm embrace of the weeklong National Day holiday, one of the busiest retailing weeks of the year.

According to data from the National Bureau of Statistics, the combined profits of home appliance makers nationwide rebounded by a robust 11.2 percent since last year.

The real estate boom released pent-up demands, and a number of government incentives have also played a key role in sparking buyer interest, said Zhu Lijun, a senior analyst with the China Galaxy Securities Co. Ltd., in an interview with the National Business Daily.

China has kick-started a program that allows consumers in nine cities and provinces, including Beijing and Shanghai, to claim 10 percent of the purchase price of new appliances if they recycle their older models. In addition, farmers can receive cash subsidies for appliance purchases.

A considerable drop in prices of commodities like steel and copper also provided a floor for their profit margins, said Zhu.

Commodity prices are bound for a prolonged rally in the coming months, but most home appliance makers have bought into forward contracts to hedge against cost inflation, he said.

The biggest concern lies in the appliance export market that grew anemic as Western customers hunker down in the wake of an economic washout, added Zhu.