China will take effective measures to help small and medium-sized enterprises (SMEs) when investing overseas.

The measures involve the reform of the investment system and new ways of attracting investment funds, said Wang Yuanzhi, director of SME Department of China National Development and Reform Commission, at yesterday's 36th World Trade Center Association (WTCA) General Assembly.

"The purpose is to create a favorable environment for their (SMEs) involvement in the competition in the overseas market," Wang said. "We will help enlarge overseas markets for those SMEs that have economic strength," He added.

The WTCA general assembly held a forum to discuss ways of facilitating and encouraging SMEs' international cooperation and exchanges. As the world's largest non-political trading organization, the WTCA now has 278 city members worldwide involving 750,000 enterprises, most of which are SMEs.

"The association will play a bridging role in promoting the links between Chinese SMEs and their overseas counterparts," said Guy Tozzoli, WTCA president.

Tozzoli said its trading mission would be accomplished by providing SMEs services through a computer system.

"Our service aims to make their business and trade easier and more efficient," he added.

Measures will also be taken to encourage overseas companies to invest in China's High-tech industries, modern service industries and its modern agriculture sector. Other policies will be formulated to help SMEs enlarge channels for international financing and investment.

Shanghai Vice-Mayor Hu Yanzhao said the city would establish a financial system to help SMEs solve funds shortages.

"We will assist some SMEs in getting listed on overseas and domestic securities exchanges to collect the funds they need to launch projects and expand," he said.

Hu told participants at the forum that an industrial investment company has been set up for SMEs to collect funds from home and abroad.

SMEs in Shanghai, accounting for 95 per cent of local enterprises, are a "major motive force" of the local economy and need to be given firm support, he said.

Long Yongtu, Secretary General of Boao Asia Forum, said a fair and transparent legal environment should be created to promote SMEs' international cooperation.

"The Chinese Government has done a lot in this field, but SMEs also need fair treatment in the international market," he said.

He suggested that China's SMEs should cooperate with multinationals to become part of their manufacturing and supply chains.

"If successful, they can extend their business to all corners of the world market," he said.

China now has 3.65 million SMEs and 28 million individual businesses, accounting for 99.6 per cent of the country's total enterprises.

(China Daily September 22, 2005)