Li Yizhong, deputy director at China's Economic Committee, who is also president of the China Federation of Industrial Economics delivers a speech on June 19, 2014. [Photo: CRIENGLISH.com]

Li Yizhong, deputy director at China's Economic Committee, put forward at the eight APEC SMETC Technology Exchange Conference on June 19th that small and medium enterprises should be relying on technological progress to accelerate technological transformation, during a speech in the conference's host city of Yiwu, east China Zhejiang province.

Li, who is also president of the China Federation of Industrial Economics, pointed out that small, medium and micro enterprises currently face mounting difficulties.

"Among these difficulties that hamper business, cost rising, labor cost in particular has become the most prominent issues facing these enterprises," Li said.

He also advised enterprises mid-size and below to deepen reforms and enhance endogenous motivation to adapt to market changes.

In addition, he suggested the development of mechanization, automation and informationalization to greatly improve labor productivity among businesses mid-sized and smaller.

In his view, these enterprises should accelerate technological innovation to achieve high-quality and low-carbon transformation of business practices.

He also asked these enterprises to participate in the reform of mixed ownership, optimize the development of industrial parks and promote the upgrade their industrial structures.