China dubs SMEs economic drivers, extends support
Small and medium-sized enterprises around the world are embracing development opportunities arising from a new round of technological and industrial advances, according to a Chinese official.
“SMEs are numerous in quantity, most active in innovation and have had a profound impact on the global community since they have served as a major engine to empower the world economy as a whole,” said Wang Jiangping, vice-minister of industry and information technology.
He reiterated the importance of SMEs at the 15th China International SME Fair, which closed on Saturday, in Guangzhou, capital of South China’s Guangdong province.
“Many governments are actively exploring new channels, new modes and new techniques to support the globalization of SMEs,” said Wang.
In China, SMEs, which account for 99 percent of all registered companies, contribute 50 percent of tax revenue, 60 percent of gross domestic product and 70 percent of the technological innovation, as well as employing about 80 percent of the working-age population, he said.
The Ministry of Industry and Information Technology has mapped out a five-year plan, from 2016 to 2020, to support SMEs by helping them to bring in funds, technology, talent and management expertise from abroad, with the aim of improving their strengths and helping them access global supply chains.
According to the Guangdong Business Environment Improvement Evaluation report, which was released during this year’s fair for the first time, the coastal province enjoys a dynamic business environment that is capable of supporting swift, quality economic development. But further improvements are needed in the areas of talent policy, financing support, fundamental scientific support for startups and the provision of venture capital, it said.
Chen Liangxian, vice-governor of Guangdong, said the government has issued a package of new policies and incentive measures to offer SMEs more support in the future and help them to thrive.
Meanwhile, the United Arab Emirates, which co-hosted this year’s fair for the first time, is planning a closer partnership with China to develop SMEs, according to Abdullah al-Saleh, the UAE Economy Ministry’s undersecretary of foreign trade and industry.
He said during the fair that more than 4,000 Chinese companies have been attracted to the UAE by its favorable business environment, investing at least $2.8 billion in the country. Now, many UAE-based companies, especially those in the hospitality and tourism industries, are also planning to come to China, he added.
The United Nations Industrial Development Organization, which promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability, began co-hosting the fair last year and has agreed to extend its support for another five years.
Philippe Scholtes, managing director of UNIDO’s program development and technical cooperation division, suggested that the organization collaborate more with China and the UAE to improve internet access in low-income countries, which could potentially benefit local SMEs a lot.