The Comparison Research For Middle-sized Enterprise Developmnet, Bank Loan And Credit Guarantee Framework Between Mainland China And Taiwan

The Chinese across the Strait have become a spotlight on the global stage for their economic strengths. Economic development not only brings a prosperous life for the Chinese people in Taiwan and Mainland China, but also results in a closer relationship across the Taiwan Strait. Though there are tremendous differences of economic development and process on both sides, they have achieved admirable accomplishments. How in the world are the economies across the Strait developed? And how will they keep their original advantages for continual development facing such keen competitions on the international market nowadays? These will be the most concerned issues in this article.Directed by such topic, we found that there is one thing in common on the economic development for both sides, which is private sectors. The private small and medium sized enterprises, in particular play a critical role for the economic development across the Strait. The importance of small and medium sized enterprises is self-evident in Taiwan, the so-called 'Kingdom of Small & Medium Sized Enterprises.' However, how did the small and medium sized enterprises evolve in Taiwan? What kind of characteristics they developed? And how did the government provide assistance during the process of development? First of all, under a free economy systematically programmed by the government, small and medium sized enterprises in Taiwan are fully respected and private properties of the people are protected as well. Besides, proper industrial policies are regulated in compliance with specific elements andtattributes here in Taiwan and the order of agriculture, light industry, heavy and chemical industries and information industry is gradually developed in order. Meanwhile, the 'import substitution policy' was first adopted to help local enterprises grow and then the 'export expansion policy' was taken to assist multitudinous small and medium sized enterprises to enter the international market. Through the division method of labor for global production and marketing, small and medium sized enterprises in Taiwan couldget orders from foreign companies, purchasers or local trading companies and all they had to do was concentrate on manufacturing. Therefore, small and medium sized enterprises in Taiwan have always been the off-stage contributor to promote exportation. Furthermore, directed by the official industrial policies, small and medium sized enterprises in Taiwan have emphasized the traditional labor-intensive industries for quite a long time. As the manufacturing process of such industries is separable and there are fewer requirements for techniques and capital, the enterprises subcontract those orders that are without profits or they can't manufacture themselves to downstream factories in order to reduce costs. In this way, a hierarchical subcontracting system has been established and become a 'flexible cooperation structure of enterprises,' which is a peculiar feature as well as a force to unite loose-structured small and medium sized enterprises in Taiwan. On the other hand, what kind of role did the government play during the development process of small and medium sized enterprises in Taiwan? It seems that the government takes a macroeconomic perspective and applies 'tolerant management' to reduce various interventions in issues like environmental protection, labor conditions and financing, etc. so as to create a relatively sound and free competition environment eit,her intentionally or unintentionally. In this way, small and medium sized enterprises can be allowed to go into the market freely and grasp various business opportunities. Besides, as the operation environment deteriorated after 1980, the government reinforced assistance and support for small and medium sized enterprises and established the so-called 'Ten Assistance Systems,' which focused on financing, operation management, production technology, research & development, quality upgrading, information management, industrial safety, pollution control & prevention, marketing and cooperat...