Restructure SMEs, take industries to new areas

The subprime crisis has had the US market shrink a lot and a large quantity of financial capital re-oriented to commodity markets or emerging economies, stirring greater fluctuations in the prices for the crude oil futures and assets in emerging economies.

Obviously, China's export-oriented development mode was affected greatly as the crisis imposed too much pressure on a driving force of the country's economic development - small- and medium-sized enterprises (SME).

These enterprises' profit margins have been greatly reduced by the rising manufacturing costs. Some firms had to suspend production or even close down due to rising costs and shrinking external demand. The harsh reality warns the authorities that the decades-old mode of economic development must be changed and improved so that the whole society's ability to withstand external economic shocks can be bolstered.