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Small Businesses New Economic Driving Force
The development of small businesses is one of the most important driving forces for China's economic growth in the next decade, according to leading Chinese economist Fan Gang.

Economic globalization and the entry of multinationals have provided many opportunities for Chinese companies, especially small businesses, said Fan of the Chinese Academy of Social Sciences.

Fan, also an economic advisor to the State Council, urged smallbusinesses to take the advantage of the opportunities to produce accessories for these multinationals.

During the process, Fan said, small businesses could learn advanced expertise and marketing techniques and at the same time, accumulate capital needed for future expansion.

The development of small businesses would also help solve the problem of China's 500 million surplus farmers.

Refuting the skepticism over China's economic development potential, Fan predicted that China's economy would maintain its good momentum in the next decade.

In the next two or three years, Fan said, the increase in investment, especially non-governmental investment, and the recovery of foreign trade would provide strong support for the overall economy.

"With the world economy taking a turn for the better, the international demand for Chinese products will go up."

Admitting problems in China's economy, such as high ratio of bad debts in banks and downward trend of the price index, Fan saidthe government was fully aware of these problems and was taking proactive measures to deal with them.

(People's Daily July 29, 2002)

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