Product Innovation Of Small And Medium Sized Enterprises In China

China is the leading world’s production and export nation. Dominating enterprise factors enable China to exist as a world trade centre since. These revolve around the fact that China adopts internationalism concerning building competitive industries. The labor sector faces complete transformational regime. The regime focuses on the innovation on the labor power and general technological input. The manufacturing industries cover a large extension into China’s trade activities. Nonetheless, existing challenges faces both the small and intermediate enterprises in the country. A close evaluation of Wenzhou describes many challenges facing the country trade activities. China’s business trend revolves around both the emerging enterprises and the intermediate business units. These sectors face institution based challenges towards progressive schemes. However, a close observation points to rapid development over the last years. According to close China market studies, the barriers influence the innovation on the enterprises. The current condition of institutional environment affects the progress of the enterprises at large. The identified areas lack clarification based on the immediate market surveys. The influences on the current status of the world’s leading trade centre depend on varying aspects both internal and external. These factors include competitive scales, the accessibility of available funds, regulatory policies, the taxation systems and the supporting business structures. The analysis of these factors limit the performance circumstances of the marketers in china. In general, the above factors increase general assessment schemes enhancing efficiency.The key objectives for discussion in this research aim at collecting descriptive evidence on product innovation practices, among the Small and medium enterprises in China. Secondly, examining the impacts of product innovation on sustainable development. Thirdly the research will develop a model showing the impacts of product innovation and its characteristic on SMEs.Lastly, it will contribute to knowledge of the relationship between product innovation and development of SMEs in China.This study will also discuss policy implementation, investor policy and the generated taxation considerations. The discussion criterion describes China’s enterprise as independent establishments with relevance to the different ownership systems developed. This provides a logical angle of observation that provides insight to the accurate picture. Property ownership policy also enables credibility on the general survey with relation to the rapid growth and development of the businesses. The business units’evaluation explains China’s responsibility in employment creation and provision of the communal needs. The industrial policies enable general the general overview of the business units. This establishes a connection to the world market trends enabling opportunities for improvements.The definition of the small and intermediate enterprise differs in China. Other countries base the definition on the size and general accommodation figures. In China, however, the definition targets the sales volume and overall gross assets per given sectors. The Chinese enterprises account for the world trade centre’s employment and basic income. This translates to a98percentage of the business units. This means that about60%of the country’s population survival originates from the small and intermediate enterprises. The industrial output interpretation translates to about75%as per the year2012. These figures also include the revenue statistics of50%within the same year. The SMEs supply about75%of the main urban population’s employment opportunities. Under logical data, this represents about a50%of the laid off workers from private industries and the state enterprises (Chao,2012).This study used both primary and secondary research methods. Secondary research method will require the researcher to use the intranet, internet references and available books. While, primary research method requires the use of observation and questionnaires, which will facilitate the research with quality information for quicker analysis. The study relied on primary and secondary research methods because they are the most reliable, and efficient methods that can be combined to bring out accurate results that will answer the research question. In addition, this methods suit the research question that demands both human interaction and secondary research.Results obtained in this study highlight that Chinese small business enterprises cover the country’s labor market with wide population coverage. This aspect translates to a70%employment to innovative entrants every year. The development of the Chinese economic sector gains ground from the SMEs. These business units also serve significant roles of employing the large population. The criteria on employment factors originate from innovative incorporation of available resources. The establishment of the business units also relies on the global recognition of China’s SMEs. This promotes China’s exports serving a world class economy. Through the innovations, China obtains a strategic position in the world markets. The enterprises provide a significant link between China and the international trade. The exploration of the world trade exhibition allocates expansion opportunities to China expanding economic prospects. The supporting evidence of the success of China’s enterprises is showcased by the establishments in Shanghai town. The town exhibits new commodities developed through emerging technology in the new era and regime. These achievements are associated to the small and intermediate enterprises in China. The output sales scales in the business ventures serve large markets compared to the outsized enterprises. The variance emerges from the concentration of large scale production of the new products by the SMEs. However a summary of the enterprise scale displays an imbalanced global trade channels. This factor also affects other trade markets in the world with a growing shortage of supply inputs. China’s improvement on the world trade scale originates from the incorporation of innovate small and intermediate enterprises (Blackman,2006).