Affected by the European debt crisis, many local companies are experiencing their most difficult period because of a lack of funds for development and expansion.

It is time for SMEs business to stand up and compete against the giant state-owned enterprises and occupy more market shares, if the mainland's economic rise is sustainable.

Obviously, small- to medium-sized businesses are handicapped by lack of access to financing.

Premier Wen Jiabao has urged the big state banks' monopoly on business financing must allow private capital to enter the sector.

Now in the last of his 10 years in office, Wen has long championed such reform without success.

Meanwhile the stranglehold on capital by state enterprises is getting tighter, even as China's economy is slowing and private enterprise is stranded by tight lending conditions.

The big four state banks are doing very well by lending to state firms. SMEs or small firms may have expressed their ideas many times but failed since the policy did not allow those firms to get loans from state-owned banks.

SMEs and private businesses have been starved of funds and this has spurred the growth of illegal underground banks to meet their needs.

In order to crack down illegal loans lending to SMEs and encourage SMEs business development, State-owned banks should issue favorable policies to support SMEs development.

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