As reforms progress and the Chinese economy becomes increasingly open, the role of small and medium-sized enterprises-----township and village enterprises in the country is growing. They produce 30% of gross industrial output, despite its growing importance, at the end of 2000, the TVEs accounted for only 8 percent of bank lending , and only 3 percent of the companies listed on the Shanghai and Shenzhen stock exchanges were TVEs firms. The discrepancy between the dynamism of the TVEs and its …showed first 75 words of 2078 total…

…showed last 75 words of 2078 total…china requires changes by the enterprises themselves, by the local and national governments. And by financial institutions ,these changes are critical if the TVEs engine of growth is not to stall . but changes on each side would be mutually reinforcing better borrowers and better banks in a better regulatory framework ,with greater access to external finance. China's Chinese TVEs will continue to play a larger role in the growth and transformation of the Chinese economy.