A 4 trillion yuan investment boost fuels hopes for the lifting equipment industry's rebirth.

　　The sudden financial crisis has dealt a severe blow to the machinery manufacturing industry. Among the nation’s 4 trillion yuan investment package and the ten major industry revitalization plans, most of the funds have been directed toward state-owned enterprises, creating significant challenges for the machinery sector—particularly for private small and medium-sized businesses. At the same time, this shift has introduced additional uncertainties into the development of the lifting machinery industry, which is closely tied to processing and manufacturing activities. From discussions with several overseas managers based in Henan Changyuan, China’s “Lifting Machinery Capital,” the author learned that after the Spring Festival, their order volumes have declined compared to the same period in previous years. Moreover, some contracts signed last year have either been put on hold or outright terminated—either because buyers lack sufficient funding, or due to declining business performance among manufacturers.

　　“Protecting employment and boosting growth” are the two key “magic weapons” for overcoming this year’s financial crisis. However, to fully unleash the power of these “two protections,” it’s essential first to ensure the stable development of businesses—especially private enterprises and small-to-medium-sized companies. After all, private firms and SMEs are the lifeblood of China’s national economy, contributing as much as 66% of the country’s GDP and accounting for over 70% of total employment nationwide.

　　It can be said that, at a time when the global economic crisis remains deeply entrenched, ensuring Chinese SMEs successfully navigate this "economic winter" hinges on two key factors: first, breaking through the financing freeze; and second, actively participating in government-led stimulus investment initiatives. As for how to secure funding, Wang Wenbiao, a member of the National Committee of the Chinese People's Political Consultative Conference, recently presented a practical and actionable proposal at this year's Two Sessions. He strongly recommended increasing support from national and local government bonds for private enterprises and SMEs, particularly in areas such as technological innovation, employee training, and industrial upgrading.

　　It is reported that the total issuance of national and local government bonds this year will reach 500 billion yuan. If the government allocates a portion of these bonds to provide robust support for private enterprises and small- to medium-sized businesses, it would not only help break through financing bottlenecks, facilitate structural adjustments, and elevate industrial standards but also create more job opportunities, alleviating pressure on the nation and contributing to its economic stability.

　　However, despite a growing consensus—from the central government down to local levels—on the urgent need for SMEs to thrive—echoed even by Premier Wen in the government report, where he publicly pledged to prioritize SMEs in financing and government investment projects—private and small-to-medium-sized enterprises have still not received equal national treatment in this nationwide campaign to boost domestic demand.

　　Whether it’s the new regulations introducing an additional 5 trillion yuan in loan financing this year or the massive 4 trillion-yuan state-led expansionary economic stimulus plan, so far at least, the lion’s share of this enormous financing and investment "cake" has been claimed by state-owned enterprises—leaving even the creamy edges largely out of reach for smaller, private businesses.

　　First, let’s talk about the People’s Bank of China’s 5 trillion yuan new loan target set at the beginning of this year. For small and medium-sized enterprises (SMEs) and private businesses, there’s no room for complacency. Data shows that RMB loans increased by 1.62 trillion yuan in January and nearly 1 trillion yuan in February—already reaching half of the annual target of 5 trillion yuan. According to bank officials, more than 90% of the new loans extended in January were directed toward state-owned enterprises participating in government-backed projects.

　　As for the central government’s 4 trillion yuan economic stimulus plan, the vast majority of these investment projects—each worth hundreds of billions or even trillions of yuan—have been almost entirely absorbed by state-owned enterprises. In particular, the over one trillion yuan in funds directly invested by the government has largely circulated within the state sector. For instance, State Grid Corporation alone has reportedly pocketed nearly a trillion yuan from this fiscal pie. As some commentators have noted, even seemingly minor components like circuit breakers—or smaller parts essential to basic operations—may not be shared with private firms outside the system. Instead, only those private companies that have direct financial ties to the state-owned giant stand a chance of landing even a tiny, meager contract.

　　From the analysis above, we can clearly see that both the allocation of new national credit quotas and the implementation of government stimulus investment plans have increasingly become a feast exclusively enjoyed by state-owned enterprises. It’s evident that if this trend persists, it will not only hinder the pace of China’s economic recovery but also place invisible pressure on future employment prospects—potentially delivering a severe blow to China’s crane machinery industry. If the initial wave of new loans failed to extend a helping hand to small and medium-sized enterprises, and if the earlier 4 trillion yuan investment plan was predominantly dominated by state-owned firms, then the subsequent round of fresh lending—amounting to the remaining 2.4 trillion yuan—must be directed squarely toward private businesses and SMEs. Moreover, should there be an even larger-scale national investment initiative in the future, private companies must be actively encouraged to participate. Additionally, National Committee of the Chinese People's Political Consultative Conference member Wang Wenbiao has proposed leveraging government bonds to help private and SMEs secure much-needed financing. The government should proactively embrace this suggestion and move swiftly to put it into action.

　　"Investing in private enterprises and SMEs requires skillfully leveraging both government and private capital, while proactively addressing the current crisis."

　　At the recently concluded Two Sessions, Premier Wen Jiabao's strong commitment to vigorously supporting the development of small and medium-sized enterprises (SMEs) during a press conference served as a much-needed boost for SME leaders and managers. We believe that in the nation's upcoming economic plans, SMEs will finally receive the support they deserve—and we also look forward to seeing the lifting equipment industry emerge even stronger from this challenging period.