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The government will pursue every possible means, including both international collaboration and regulatory supports, to strengthen the country's small- and medium-sized enterprises (SMEs), a government official said yesterday.

 

"We regard it as a pressing task to help SMEs maximize their business potential," Ou Xinqian, vice-minister of the National Development and Reform Commission, said.

 

"China's SMEs play an indispensably important role in driving the country's economy and addressing the rural employment issue. SMEs are a catalyst for creating a harmonious society."

 

Ou made these remarks at a press conference about the upcoming Asian Europe Meeting (ASEM) SME Ministerial Meeting in Beijing.

 

The two-day gathering, to be held on October 30, was proposed by Premier Wen Jiabao during the sixth ASEM, which was held in Finland.

 

The meeting is considered a reflection of China's commitment to providing a platform for international cooperation on SMEs.

 

ASEM has 45 members - 16 from Asia, 27 from Europe, the European Commission and ASEAN Secretariat. The grouping's members are responsible for about 60 percent of global trade and half of the world economy.

 

"Chinese SMEs can complement those from Europe and other regions of Asia, and they can benefit from each other as well. I believe some agreements will be signed during the upcoming meeting," Ou said.

 

This will not be the first example of international collaboration between SMEs. Since the end of 2004, the authorities have "signed numerous memorandums of understanding on SME cooperation with major economic powers, including Germany, South Korea, France, Italy and the United States.

 

All of these agreements are in the execution stage, Ou said.

 

Creating overseas business opportunities for SMEs is one part of the government's goals. Several rules and regulations that favor the development of SMEs have been issued.

 

In January 2003, the Law on the Promotion of SMEs came into effect.

 

In February 2005, the State Council issued the Opinions on Encouraging, Supporting and Guiding the Development of SMEs.

 

The Opinions, also known as the 36 Regulations, cover seven areas including market access, financing and service. Twenty-seven of them have been implemented and have been of great help to SMEs, Ou said.

 

(China Daily June 8, 2007)