Core Viewpoint - The article discusses the critical role of trade financing in supporting small and medium-sized enterprises (SMEs) to integrate into global supply chains amidst increasing risks and challenges in the global economic environment [1][6]. Trade Financing Overview - Trade financing is a short-term financial service provided by commercial banks to facilitate international trade, primarily based on assets like inventory, prepayments, and receivables [2]. - Key characteristics of trade financing include self-repayment, authenticity, closure, short-term nature, and flexibility [2][8]. Current Development Status - The global trade financing gap has expanded, reaching $2.5 trillion in 2022, which is 10% of the total global merchandise trade, a 66.67% increase from $1.5 trillion in 2018 [3]. - SMEs face significant challenges in accessing financing due to their inability to provide sufficient collateral and the cautious risk assessment by financial institutions [3][11]. China's Role in Global Trade Financing - China's import and export trade is projected to reach $6.16 trillion in 2024, maintaining its position as the world's largest exporter and second-largest importer [4]. - The banking sector in China has seen a steady growth in trade financing, with international settlement volumes reaching a record high of $11.57 trillion in 2023, a 4.4% increase from 2022 [4][5]. Trade Financing's Impact on SMEs - Trade financing plays a vital role in helping SMEs overcome financing difficulties, providing flexible options like letters of credit and factoring to ensure operational continuity [6][8]. - By facilitating access to lower-cost funds, trade financing enhances SMEs' competitiveness in global supply chains [6][8]. Challenges and Strategies for Financial Support - The article emphasizes the need for a multi-layered financial service system to meet diverse market financing needs and support sustainable global supply chain development [12]. - Recommendations include improving the banking system, enhancing capital market structures, and fostering financial innovation to better serve technology-driven enterprises [15][18].