Special Supplement: Focused financing needed for smaller companies

The Chinese government should aid the growth of small and medium sized enterprises (SMEs) through financial institutions with services designed for them, Justin Lin Yifu, chief economist of World Bank, said recently in Shanghai.

China still has an abundant and inexpensive workforce, which has advantages in labor-intensive industries, but further capital is needed to generate more jobs, he said.

Because of its competitive edge in human resources, industries can grow quickly and promote development beyond labor-intensive industries to capital-intensive production, he noted.