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y 41 Appendix 1 访谈问卷 43 Appendix 2 Interview questions 44 Appendix 2 Transcript of interviews 45 Interview 1 45 Interview 2 46 Interview 3 48 Interview 4 50 Interview 5 51 Interview 6 53 Interview 7 55 Interview 8 56 Interview 9 58 Interview 10 59 Interview 11 61 Interview 12 63 Interview 13 64 Interview 14 66 Interview 15 67 Interview 16 70 Abstract Small and medium enterprises in China have been clearly defined in the Law for the Promotion of Small and Medium Sized Enterprises of Small and Medium Sized Enterprises of the People’s Republic of China, which has been formally implemented on January 1st, 2003. The three indices of employees, sales value and total amount of assets are the main standards for the classification of corporate scale. The advantages of rapid reaction and flexible mechanism have made small and medium enterprise an extraordinary important role in technological progress and mechanism innovation for small and medium enterprises. The export and import trade of China starts from the early 1980s. Annual import and export value at that time is approximately 40 billion US dollars while the operation of foreign trade is mainly under the large scale state owned enterprises. Economic globalization means the newly rising economic phenomenon that world economies depend on each other with the high speed global scientific and technological development Economic globalization is a kind of systematic innovation. Characteristics of economic globalization are as follows: First is the global division of labor and allocation of productive factors. Second is the globalization of free trade. Global trade is the precursor of economic globalization and has become the most important expression of economic globalization. Third is the financial globalization. With the rapid flow of international capital, financial organizations and business in many countries develops vigorously, vast amount of international capital flows around throughout the whole world with the help of international financial center. Fourth aspect is the globalization of regional economic organization. Fifth aspect is the globalization of science and technology. Final aspect is the further strengthened dominant power of transnational companies. The theory of economic globalization originates in the industrialization revolution period in United Kingdom. Over the past 200 years, economists from various schools have conducted deep and overall research on economic globalization from different perspectives. Various schools have been summarized, for instance, Economic globalization theory of New Marxist School, Economic globalization theory of classical or new classical economist (The economic globalization theory of Adam Smith and David Ricardo, Heckscher-Ohlin Theorem of economic globalization), Economic globalization of modern economists (The new liberalism school, the skepticism school, and the transformation school). Flexible operation and various formats are the strength of China’s small and medium enterprise. Because small and medium enterprises are not entitled to go public in Shanghai or Shenzhen stock markets, they may often turn to indirect financing, which would loan from banks and other financial organizations. The high risk of loans in small and medium enterprise, low credit without effective credit insurance systems or hostage, financial organizations tend to be reluctant to issue loans. Small and medium enterprises would acquire even gr