"As imports and exports of Shanghai do not reflect economic activities only in Shanghai, and may be affected by and serve the needs of economic activities in many regions in China, we cannot say that Shanghai is seeing a trade deficit," Yan said.

Song Xiaohui, deputy director of Shanghai SME Development and Service Center, added: "We've seen certain SMEs fail to receive enough orders to make profits and were forced to stop production in 2012, but this will change with the warming up of the economy."

Song added that the economic recovery in 2013 will definitely help the majority of SMEs out of their money-losing situations, and they will show profits eventually.

Although the gap between imports and exports has been expanding since 2011, Yan said the current situation is meeting the demands of Shanghai's economic growth and the city's efforts to become an international trade hub.

Industrial enterprises in Shanghai also had a difficult year in 2012, with 26 percent of industrial enterprises "above designated size" reporting losses from January to November. An industrial enterprise above designated size means it has annual income from main business exceeding 20 million yuan.

The total profit of industrial enterprises above the designated size in Shanghai was 204 billion yuan from January to November in 2012, a 1.8 percent year-on-year increase.

Wu Yue, general manager of Shanghai Zaiwang Steel Co Ltd, said: "Hopefully, everything will get better for the year, which will bring us at least a bit of profit so that we can survive in the huge market."

Qian Shaotian, the sales manager of Shanghai Yuanzong Hardware Co Ltd, said: "The export volume of the company dropped nearly 30 percent as the number of orders from overseas decreased sharply during the whole previous year, especially the European market."

Contact the writers at [email protected] and [email protected]

Services sector a new growth engine

Services outsourcing sector to grow 40% annually

China's service trade to mark steady growth

Companies get awards for service innovation

Services sector to increase its economic worth

Latest news about Shanghai

Shanghai seeks to be world commodities trade center

Shanghai drivers buy license plate before the car

Shanghai plagued by heavy pollution

Shanghai set for new visa plan

Shanghai reclaims top spot

Shanghai gains in competitiveness list