In the very recent time, China has witnessed surprising economic growth; nevertheless, the financing source of this growth is indistinguishable. On the one side, it is found that China has reliance typically on informal or internal sources of financing as regards its weak formal legal and financial order. For that reason, China comes into view as a counterexample to the legal and financial literature. On the other hand, it is found that the preponderance and particularly most resourceful element of China growth is external or formal financing in the form of bank loans (Dybvi, Shan and Tang, 2011). Therefore, the issue is as whether both internal and external sources jointly finance SMEs in China. This is in the light of the fact that SMEs has substantial contribution in Chinese economy. To cite Jiaobin and Yuanyi( 2011 ), SMEs plays an important role in this second largest economy of the world, and this is evident through the fact that in 2009, SMEs in China threw in 35 percent of the country’s total GDP. However, for Walter (2005) , SMEs in China get just 12 percent of their running capital from bank financing and this critical situation of financing SMEs in China can be attributed to various reasons principally fruitless financial system , banking system deficiency etc. Beck (2007) aptly argues that the accessibility of external sources of financing SMEs in developing economies particularly China is an issue of great concern for researchers and practitioners all over the world and particularly in the specified region. This is an issue of policy making for government in developing countries, and in China particularly. Taking notice of this fact, this study aims to explore and analyze the problem of financing SMEs in China by local commercial banks and foreign banks’ role in financing SMEs in the country. In this section the structure and deficiency of financing SMEs in China has been critically discussed from the perspective of formal or external sources of financing SMEs. In the next section, the constraints of financing SMEs are critically discussed, particularly in the context of external sources.
在最近的时间，中国经历了惊人的经济增长；然而，这种增长的资金来源是没有区别的。另一方面，可以发现，中国通常在非正式的或内部的资金来源就其弱形式的法律和金融秩序的依赖。为此，中国进入视图的一个反例的法律及财务文学。另一方面，发现优势和中国的增长尤其是最足智多谋的元素是外部或正式的形式是银行贷款融资（dybvi，山，唐，2011）。因此，问题是是否内部和外部来源共同在中国中小企业融资。这是事实，中小企业在中国经济有重大贡献的光。引用jiaobin和元（2011），该第二大中小企业在世界经济中扮演着重要的角色，这是显而易见的事实，通过的2009，中小企业在中国将在该国国内生产总值的百分之35。然而，沃尔特（2005），中小企业在中国只获得了百分之12的运行资金从银行融资，这个关键的情况下中小企业融资在中国可以归因于各种原因主要是徒劳无功的金融系统，银行系统缺乏等。贝克（2007）被认为在发展中国家特别是中国中小企业融资的外部来源可达性是一个十分关注的问题，为研究人员和从业人员世界各地，特别是在指定的区域。这是一个在发展中国家的政府制定政策的问题，在中国尤其是。以注意到这个事实，本研究的目的是探讨在中国中小企业融资难问题的地方商业银行，在全国中小企业融资的外资银行的作用分析。在这一部分是从正式的或外部的中小企业融资来源的角度重点讨论在中国的结构与中小企业融资不足具有。在下一节中，中小企业融资约束是批判性的讨论，特别是在外部来源的上下文。
